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OIL FIELDS/MINERAL RIGHTS

    Case Study #1: Oil field onwer strikes a gusher with property tax savings!

    Total Tax Savings: $138,000

    Oil rights are valued using the income approach with a specific emphasis on the current market rate for the price of oil. It is quite obvious, therefore, that the value of these rights can fluctuate greatly from year to year. The owner of an oil field in Orange County contacted Protax LLC after oil prices had fallen in the hopes of realizing some property tax savings. After analyzing the property and its financial history as well as the appropriate valuation methodology employed by the county assessor, Protax developed and implemented a tax reduction strategy that produced an overall tax savings of $138,000.