Charleston, WV – Property taxes on oil and natural gas production in 2016 will provide county governments in West Virginia with just over $134 million to fund local school systems and vital community services, representatives of the West Virginia Oil & Natural Gas Association announced recently.
“The rise in natural gas and oil production over the past several years is benefitting West Virginians,” said Anne Blankenship, Executive Director of the West Virginia Oil & Natural Gas Association (WVONGA). “All counties in the state receive gas tax monies and those counties where natural gas and oil production is growing have really seen a windfall. Those funds are going for school improvements and to provide services to residents of the counties and municipalities.”
Blankenship said recent data from the West Virginia Division of Tax & Revenue show 2016 oil and natural gas property tax assessments grew by 28 percent over 2015 contributions to $134,925,167. This is on top of a 47 percent increase between 2014 and 2015.
As an example, Blankenship cited Doddridge County.
“Property tax collections for Doddridge County in 2015 totaled $8,117,515, the fifth largest amount of all counties in the state,” Blankenship said. “However, 2016 oil and gas property tax assessments for Doddridge County are projected to be just over $20 million, the second highest total in the state behind only Wetzel County.”
Dave Sponaugle, Assessor for Doddridge County, said, “The total assessed values for Doddridge County have significantly increased in recent years. This increase has been a direct result of the development of the Marcellus Shale. The tax revenues generated from these values are distributed by the tax rate which funds the school system and various county agencies.”
The top five counties generating the largest amount of oil and gas property taxes include: Wetzel ($24,041,553); Doddridge ($20,823,101); Harrison ($14,919,208); Marshall ($14,879,131); and Ohio ($9,082,195).
Maribeth Anderson, president of the WVONGA board of directors, said, “In addition to the property tax values based on production, gas producing counties receive significant monies from property taxes on other industry segments, like pipelines, compressor stations, extraction and fractionalization facilities. The total property tax impact of the oil and natural gas industry is helping our counties grow and thrive, particularly at this time with the State facing a budget shortfall.”
For additional information, contact Anne Blankenship at (304) 343-1609.