By Steven Allen Adams, The Inter-Mountain
CHARLESTON, W.Va. — A new rule from the State Tax Department determining how to assess taxes on natural gas-producing property is making no one happy, including lawmakers who could either change or scrap the rule next month or start over from scratch in the next legislative session.
The West Virginia Legislature’s Rule-Making Review Committee will be considering making an emergency rule prepared by the State Tax Department regarding assessments of natural-gas producing property permanent when it meets for two days starting Dec. 8.
The State Tax Department submitted an emergency rule in June for how it planned to carry out House Bill 2581, requiring the State Tax Commissioner to develop a revised methodology to value oil and natural gas properties.
HB 2581 requires fair valuations for natural gas, oil, and natural gas liquids-producing property based on the fair market value based on a yield capitalization model applied to gross royalty payments for royalty interest to net proceeds once royalties and annual operating costs are subtracted from gross receipts…
To read more: https://www.theintermountain.com/news/local-news/2021/11/new-tax-rule-on-natural-gas-may-be-altered-or-scrapped/