Ad valorem tax is a local property tax assessed on the appraised value of producing mineral interests, billed by the county where the minerals are located.
Once a well is producing, many counties assess your mineral interest as taxable property based on its appraised value (often derived from prior-year production and prices). The bill comes from the county appraisal district or tax office, separate from severance tax withheld on production.
New owners — especially those who inherited minerals — are sometimes surprised by an ad valorem bill. Non-producing minerals are frequently not assessed, but that changes once production begins.
Taxes on mineral rights you own
Inherited mineral rights guide
Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
Because producing mineral interests are taxable property in many counties. The appraisal district values your interest from production data and sends an annual ad valorem bill, even though the minerals are underground.
Usually not — most counties assess ad valorem tax only on producing interests. Once a well begins producing under your tract, assessment typically follows.
No. Severance tax is a state production tax withheld from your royalty; ad valorem tax is a local property tax billed separately by the county.
Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.
Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau.
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