The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-01
MINERAL RIGHTS
WILL BE TAXED
NEW LAW REACHES GLASS OF
PROPERTY BEFORE UNTOUCHED.
Reservations of Mineral and Other IN
defground Rights Must Be Listed as
Real Estate This Spring Owners
Expected to Drop Them Rather than
Pay Taxes, as Rule.

A new item Of realestate will be
listed by Minnesota assessors this year.
Under chapter l61 Of the General Laws
of 1905, which was introduced by Rep
resentative e. r. Kinds of Park Rapids,
all mineral, gas, coal, oil or similar in
terest in real estate, owned separately
from the land itself, are to be assessed
taxes are not paid, these interests may
be sold for taxes the same as any other
real estate.
The effect of this new law promises
to be far-reaching, if it is generally
complied with by the assessors. Land
men say that most of the land in the
tlmhered section of the state which has
The purchaser gets title to the land,
but the first owner, who is usually a
lumberman or railroad company, re-
serves the right to anything that may
be found under the surface If iron
ore is found, he has the right to mine
it, and he. would have the same right
to appropriate any other mineral wealth
found under the surface of the land.
These mineral reservations have been
made almost invariably in the north
western part of the state, but they are
a common practice in all the newer
sections, even hundreds of miles from
the iron range country.
H:ese reservations nave only spec
taxed heretofore as property. In nine
| ty-nine cases out of hundred, it is
presumed, they will bring nothing what
ever to the holder. The theory Of the
new law, however, is that if they are
worth feserving at the time Of sale
they are property, and must have some
value; They should. therefore, be taxed
and stand share Of the PUBLIC burden
When local assessors begin their work
May l, listing real estate, they will
have instructions to look up the min
eral reservations on file with the regis
ter of deeds and assess them to the
owners under the head of real estate
Even if they are assessed at a few
thousands to the taxable valuation Of
the northern counties, and if the taxes
are. paid they will make the law worth
while. Es..E it "
Land men do not expect the owner.
OF these reservations to pay the take!
to any extent: As mineral rights have
only a speculative value, the owners
long as they. could carry these ri ght
without costing them anything, the,
have hung on, but it is PREDICTED tina:
the assessment of these reservation
| will bring about wholesale relinquish
ment. Such an outcome, it is declared
will be one Of. the best things tina
could happen to northern Minnesota
These mineral reservations have beef
q stumbling block to sale of lands an,
development of the country. Othe
things being equal, buyers will no
touch land to which they cannot &c
full title and control. When they bu,
land they want it all, including wha
may be under the surface. The minera
= reservations have hung like an incubus
loading down the land and sending pros
: pective buyers away to purchase else
= where. This state of things led to tn
! passage Of the new law. 1t is not e1
pected to produce very much revenu,
; but will accomplish its purpose If
n Of the northern Minnesota counties an
3 does. away with mineral reservatio
= holdings. - J." ~' =