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<blockquote data-quote="Allen" data-source="post: 436362" data-attributes="member: 389">Problem is how to determine the value of mineral acres ahead of the discovery of oil, or some other recoverable mineral.&nbsp; We have gravel deposits on our land.&nbsp; They've been known about for years.&nbsp; A little over 20 years ago when a gravel company finally wanted to develop them, they came in and for archeological reasons the gravel became worthless.&nbsp; The oil out west in the Bakken was known to exist but considered worthless for at least 40-some years because it couldn't be economically produced, so a mineral acre of the Bakken was in all practical sense worthless.&nbsp; Now, in reality some would pay a few bucks an acre for the minerals if they bought the land in the hope that something would eventually change, but often it was just so they could say they owned them.In this example I think the swap of a property tax on something that can't be accurately assessed, for excessive taxation on income from that property is probably a reasonable solution to most.&nbsp; Hence, why the legislature codified it into law.Let's put it this way, you live in Burleigh county.&nbsp; I am going to guess you own the minerals to your place.&nbsp; That being the case, what would you suggest they are worth and would you like to pay property tax on them?&nbsp; Remember, sand is absolutely a resource that can be valued and mined.&nbsp; As are rocks, trees and XXXX.</blockquote>

[QUOTE="Allen, post: 436362, member: 389"] Problem is how to determine the value of mineral acres ahead of the discovery of oil, or some other recoverable mineral. We have gravel deposits on our land. They've been known about for years. A little over 20 years ago when a gravel company finally wanted to develop them, they came in and for archeological reasons the gravel became worthless. The oil out west in the Bakken was known to exist but considered worthless for at least 40-some years because it couldn't be economically produced, so a mineral acre of the Bakken was in all practical sense worthless. Now, in reality some would pay a few bucks an acre for the minerals if they bought the land in the hope that something would eventually change, but often it was just so they could say they owned them. In this example I think the swap of a property tax on something that can't be accurately assessed, for excessive taxation on income from that property is probably a reasonable solution to most. Hence, why the legislature codified it into law. Let's put it this way, you live in Burleigh county. I am going to guess you own the minerals to your place. That being the case, what would you suggest they are worth and would you like to pay property tax on them? Remember, sand is absolutely a resource that can be valued and mined. As are rocks, trees and XXXX. [/QUOTE]

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