CLARKSBURG — While the state budget continues to face shortfalls and uncertainty, property tax impacts from the oil and gas industry are helping individual counties continue to grow and thrive.
According to data from the West Virginia Division of Tax & Revenue, oil and natural gas property tax assessments in 2016 grew by 28 percent over 2015 contributions, coming to a total of about $134.9 million. This is in addition to the 47 percent increase between 2014 and 2015.
Anne Blankenship, executive director of the West Virginia Oil and Natural Gas Association, said this increase is benefitting West Virginians in various ways.
“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,” Blankenship said. “Those funds are going for school improvements and to provide services to residents of the counties and municipalities.”
In Harrison County, oil and gas property tax collections are around $14.9 million, the third largest in the state, behind only Wetzel and Doddridge counties.
Denise Palmer, the natural resource coordinator in Harrison County Assessor Cheryl L. Romano’s office, said this was related to an influx in drilling operations within the county.
“We have over 3,700 producing wells in Harrison County,” Palmer said. “Of those, there are 242 Marcellus units. Production began in 2009, and it has continually increased since then.”
Palmer said that from tax year 2005 to tax year 2016, oil and gas value has risen by over 600 percent.
Harrison County Commission President Ron Watson said the portion of the money collected that is received by the Commission goes into the general fund, which helps with various things throughout the county.
“One of the big things these funds certainly help is paying the jail bill,” Watson said. “Our regional jail bill is actually over the $2 million that we budget anyway. After that, any surplus we have after we do our budget, we put aside for infrastructure and special projects.”
“It’s sort of like a rainy day fund that can help with unexpected costs. It also helps us to match dollars for various grants and with maintenance of different structures that we have in the county. For example, we just paid $150,000 to upgrade the elevator at the senior center,” Watson added.
Doddridge County saw a significant increase in property tax collections over last year. Collections for the county in 2015 totaled around $8.1 million. In 2016, that number more than doubled, and collections are up to around $20.8 million.
Doddridge County Assessor David Sponaugle said this was almost entirely due to an increase in the oil and natural gas activity within the county.
“Doddridge County’s tax base for years has been based off natural gas,” Sponaugle said. “There is very little other industry that is here. Within the last 7 years, the county’s tax base has increased significantly. This is due to the development of the Marcellus Shale, as well as not just the production of the gas itself, but all of the industry that goes with it. That includes the pipelines, assessment of the rigs and the equipment and machinery involved. So it’s not just because of natural gas production. It’s all of the industry in total that has increased the value.”
Sponaugle said the money would help a variety of different agencies within the county.
“There are levying bodies that receive this tax money within our county,” Sponaugle said. “These are mainly the board of education and the county commission. And then, of course, the commission divides that money, and it goes toward supporting the ambulance authority, the sheriff’s office, the assessor’s office and more.”
Source: TET
According to data from the West Virginia Division of Tax & Revenue, oil and natural gas property tax assessments in 2016 grew by 28 percent over 2015 contributions, coming to a total of about $134.9 million. This is in addition to the 47 percent increase between 2014 and 2015.
Anne Blankenship, executive director of the West Virginia Oil and Natural Gas Association, said this increase is benefitting West Virginians in various ways.
“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,” Blankenship said. “Those funds are going for school improvements and to provide services to residents of the counties and municipalities.”
In Harrison County, oil and gas property tax collections are around $14.9 million, the third largest in the state, behind only Wetzel and Doddridge counties.
Denise Palmer, the natural resource coordinator in Harrison County Assessor Cheryl L. Romano’s office, said this was related to an influx in drilling operations within the county.
“We have over 3,700 producing wells in Harrison County,” Palmer said. “Of those, there are 242 Marcellus units. Production began in 2009, and it has continually increased since then.”
Palmer said that from tax year 2005 to tax year 2016, oil and gas value has risen by over 600 percent.
Harrison County Commission President Ron Watson said the portion of the money collected that is received by the Commission goes into the general fund, which helps with various things throughout the county.
“One of the big things these funds certainly help is paying the jail bill,” Watson said. “Our regional jail bill is actually over the $2 million that we budget anyway. After that, any surplus we have after we do our budget, we put aside for infrastructure and special projects.”
“It’s sort of like a rainy day fund that can help with unexpected costs. It also helps us to match dollars for various grants and with maintenance of different structures that we have in the county. For example, we just paid $150,000 to upgrade the elevator at the senior center,” Watson added.
Doddridge County saw a significant increase in property tax collections over last year. Collections for the county in 2015 totaled around $8.1 million. In 2016, that number more than doubled, and collections are up to around $20.8 million.
Doddridge County Assessor David Sponaugle said this was almost entirely due to an increase in the oil and natural gas activity within the county.
“Doddridge County’s tax base for years has been based off natural gas,” Sponaugle said. “There is very little other industry that is here. Within the last 7 years, the county’s tax base has increased significantly. This is due to the development of the Marcellus Shale, as well as not just the production of the gas itself, but all of the industry that goes with it. That includes the pipelines, assessment of the rigs and the equipment and machinery involved. So it’s not just because of natural gas production. It’s all of the industry in total that has increased the value.”
Sponaugle said the money would help a variety of different agencies within the county.
“There are levying bodies that receive this tax money within our county,” Sponaugle said. “These are mainly the board of education and the county commission. And then, of course, the commission divides that money, and it goes toward supporting the ambulance authority, the sheriff’s office, the assessor’s office and more.”
Source: TET
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