Property taxes on oil and natural gas production will provide West Virginia’s county governments with over $123 million for local school systems and vital community services in 2019.
In a recent media release, the West Virginia Division of Tax & Revenue reported an increase of nearly 40 percent, or $34.8 million, over 2018.
Those counties where natural gas and oil production is occurring have received hundreds of millions of dollars in the way of property tax receipts over the past several years. Although the amount of property taxes may fluctuate year over year due to many factors, including commodity prices, West Virginia’s producing counties continue to receive significant funds generated from the development of our oil and gas resources.
The top five counties generating the largest oil and gas property taxes in 2019 include: Doddridge ($26.6 million; an increase of 65 percent over 2018); Tyler ($19.6 million; an increase of 98 percent over 2018); Ritchie ($15 million; an increase of 69 percent over 2018); Wetzel ($14.5 million; an increase of 18 percent over 2018); and Marshall ($11.7 million; an increase of 35 percent over 2018).
Other West Virginia counties showing growth include Ohio ($7.3 million; an increase of 33 percent over 2018); Brooke ($3.8 million; an increase of 59 percent over 2018); and Monongalia ($1.5 million; an increase of 83 percent over 2018).
Increased property tax receipts are leading to significant enhancements in the schools and education systems of our gas- and oil-producing counties while also helping fund critical county government operations.
Oil and natural gas property tax assessments are based on the production and pricing of the resources from the tax year two years prior. Property tax assessments for 2019 are based on the production and pricing levels which were realized in 2017.
In addition to production-based property tax receipts, gas-producing counties receive significant funding from property taxes on other industry segments, like pipelines, compressor stations and extraction and fractionation facilities. These property tax collections are separate from and in addition to the severance tax, which generated $138 million in fiscal year 2018 and $200 million in fiscal year 2019.