I have a question regarding property tax bill when a surface and mineral...

Asked February 14, 2016, 12:11 AM EST

I have a question regarding property tax bill when a surface and mineral interest are severed. Assume that a surface and mineral interest are not severed and the property tax bill is calculated as $1,000 per acre. Additionally, the mineral property tax rate on undeveloped property is $300 per acre. If the surface and mineral interest are separated ceteris paribus, what would the taxes be. (A) The surface property tax bill is $1,000 and the mineral property tax bill is $300. (B) The surface property tax bill is $700 and the mineral property tax bill. It seems if it is the former, then you are really increasing the value of the property, simply by separating and bearing an unfair burden relative to other tax payers who have not separated the interest. The latter seems more fair as it acknowledges that the separation has not changed the value of the property it has simply allocated how the tax is apportioned in a different manner. Thanks, Fred

Ohio property tax

1 Response

My understanding is that you have directed these questions to our Field Specialist in Taxation, who is corresponding with you by e-mail. I believe he will be able to sufficiently answer your questions.