WV Legislature Adopts Compromise Amendment to Natural Gas Property Tax Bill -

"HB 2581 would provide a revised methodology to value oil and natural gas properties by the State Tax Commissioner in response to a West Virginia Supreme Court of Appeals decision in 2019 that struck down part of the methodology the department uses to value active oil and natural gas well sites."

Why this is important: H.B. 2581, as amended, provides a more realistic method of assessing property taxes on natural resource properties producing oil and gas in West Virginia. This new approach to calculating taxes on oil and gas properties is more equitable for operators by basing their valuation on the actual sales revenue received from those properties as reduced by the operating expenses experienced by producers. The methodology required by H.B. 2581 also can benefit county tax revenues by causing the development of more wells, while expanding the tax base for such properties to include natural gas liquids. Over time, this legislation should be a win-win for both operators and county governments.