WHEELING, W.Va.- (WTRF) The valuation of oil and gas wells is changing in West Virginia.
On Tuesday night, those property owners were invited to a presentation by the Ohio County Commissioners to hear from the state’s acting deputy tax commissioner.
House Bill 2581, which was passed by both the house and senate and signed by Governor Justice earlier this year, was the focus of discussion.
The house bill changes the way oil and gas in the Mountain state is being valued.
This change in valuation affects the oil and gas producers as well as the property owners who own their mineral rights.
“It used to be provided by the tax department using industry averages. Now they’ll be able to take actual costs. We are taking the actual receipts now as opposed to a three year average and natural gas liquids are specifically listed as a taxable entity under this bill.Erin Winter, WV Tax Commission Acting Deputy
Both the property owners and producers are worried about an increase in their tax bills
At this point, according to the Ohio County Assessor’s Office, property owners are mostly frustrated because they don’t understand how the minerals on their property are being valued by the state of West Virginia.
The legislative rule-making committee is currently taking property owners comments under advisement before publically releasing just how this tax valuation will look.
For those people who want to express their concerns, Winter encourages them to go to www.wvsos.com.