Case Information
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OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Honorable E. L, Shelton
County Auditor
Johneon County Oleburne, Tema,
Denr Sir;
Vie recofved your 1 ezbor 10, ,1948, relating tha above nlon~tio ter io aelf-e~planotory and
who have take
selling times cd.1 of this
I do not !mo
velopaents he law providers in thi a e in developed ae advise me whether or ghts end royalties ,ere aubjeot If suoh be taxable I think and the variour?l oountios should to the dootrine that minemle in plnoe nre PertI;fiihe realty and me cnpable of omerahip in place.
equally true thnt the minornl.s in lnce my be severed fron the surface estate by nppropr ate conveymom, r The eevermoe my bo m7de by an exceijtion or rus3rvation In the d00a, :,Aen mob s.evcrmcc 1 e acoornplinhsd, there an estate exista two real property estates, to-wit: in the minerals in plnco and m e3tr;te in the reminder
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Honorable E. L, Shelton,’ pass 2
of the land. Rumphreys-Moxia Co, ,vs J. L. Ckmmon, 118 Texes 247. In diocuooin5 these eztntes in land, the Oourt of Civil Appeals at Texarkana, in the very rooont oa%e styled County School Trustees of Upshur County ~a. l!roe, 154 8. ?i, (26) 935 (‘.:ri~t rafuaed for wnnt of merit), said I
“The lnw is settled in this State that minerals in plaoe may be severed from the sur- face; that l$hen so severed they oonatituta separate and dietinot’estatesi th;?t the nfea simple title” one parson and the “fee eimpls, title* to the surfaoe entnto may be in
to the mineral estate in another pessoni thsy eaoh *real propexty” ana oonveyanoe there- constitute of is 0ontrolloU by laws governing conveyanoes of renl oatate as dietlnguinhable froa personal property.. Stephens Oounty v,,Mid-Ransaa Oil & OH8 CO,, 115 TOX, 160, 254 El. ‘il. 290, 29 A.L.R. 506; Humphreya-Zexia 08. v, Gammon, 115Tex. 247, 254 3. Xt 296; Qriasom v. Andeer- eon, 125 Tex, 26, 79 8, :I. 26 619,*
The Supreme Court of Texas, in the sass of Bheffield va. Iiocjg. 77 5, YJ. (2d) 1021, has held that in money or in kind, unaaorued royalty, whether peyable is real property subjeot to taxation In the county wherb There are, no doubt, nmtny ral- the property is located. unble mineral eotp.tes in.this State which have never bssn developed. t?evertholess, muoh estates are eubjeat to Texoe Co. vs. Daubbert , 160 5. W. 129 (affirraed tnxation. by Supreme Court in 176 2. Vi. 717 7 .
Article 8, Seation 1 of the Uonstitution oi Texas provides, in perti as followsr
“Taxation ahall be equal and uniform. All property in this State, ,whether owned by natural persons or oorporetions, other than nn~niolpal, shall be taxed in proportion to its valuei whioh shall be ascertained as may be provided by luw.*
In o&,otininy: the value of the mineral eetatee you to Artlole 7811, for tax purposes, we refer in guestlon V. A. 0. S;, which provides, in part, aa follows:
*Hereafter when any person, firm or corporation renders his, their or it8 prop-rty in this State *3 lL L. Shelton, pase 3 Honorable
for taxation to any tax asses&or, and makes oath as to the kind, chnrnctor, qualitygand quantfiiy of such pro, nrty, and the said oifiber accepting front such parson rimi ,or oorpore- f3aiu renait on l tion of such property is satist’ied that it is correctly and ,proper,lg valued aooordin5 to the reaeonable caeh market value of stich property on the market at the time of its rendition, hi3 shall list the ssme accordinglpy but, ii the afmw- acr ie satisfied that th(t value io below the reaBon- able oash mr:rkat v.?J,us of ou& pro erty, ha shall at oboe pStl,ce on said retidition oppO8 s te each place Of -. property PO rendered an amount equal to the V3aeon- able oe.trh market.value of such property at the’t$aM or itr rendltlon, and if much property mhall br found to hove no msrlcet value by muoh offloW, then at such mua am said of’fioer shnZl deerp the rml or intrinfl$c rnlus of the proparty! , , *
hit iollowo from what we &ave said that the rro-called mineral rights and mpaltiae mentioned Sn g‘O,Wr letter are subjoot, ad Valoren taxes. very trulj,
Yours