FISCAL NOTE
Date Requested: February 19, 2025
Time Requested: 05:08 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2691 |
Amendment |
SB532 |
|
|---|
| CBD Subject: |
Counties; Taxation; Natural Resources |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to clarify the county to which ad valorem taxes should be paid when the seat of a well is in a different county than the location of the property from which the well draws.
This bill does not impact the valuation of the well, but it does clarify which county will receive the tax revenue from the well. The revenue impact of this bill cannot be determined. The amount of Property Taxes due on each well would depend on the levy rates for the county which would receive the revenue.
There would be no additional administrative costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill does not impact the valuation of the well, but it does clarify which county will receive the tax revenue from the well. The revenue impact of this bill cannot be determined. The amount of Property Taxes due on each well would depend on the levy rates for the county which would receive the revenue.
There would be no additional administrative costs.
Memorandum
The stated purpose of this bill is to clarify the county to which ad valorem taxes should be paid when the seat of a well is in a different county than the location of the property from which the well draws.
The bill does not differentiate between different kinds of wells—gas or oil, vertical (traditional) or horizontal (fracking). Gas and oil both are capable of moving through porous rock formations so it is not possible to determine exactly where particular amounts of severed elements come from. Instead, all parcels associated with a particular wellhead are reported on the producer’s return with amounts of royalties disclosed.
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov