Massive Income Cut for Doddridge
A few weeks ago the County Commissions in the State prepared their budgets and approved their tax rates (of 14% for Doddridge County) for the 2022/2023 Fiscal Year (From July 1 to June 30).
At that point the Commissions were aware that during the 2022 Spring Session the Legislature had approved the new House Bill 2581 which changed the items that would be calculated to determine the appraisements of the oil and gas, decreasing the total taxes owed for each well by saying: “(2) For assessments made on or after July 1, 2022, with regard to property producing oil, natural gas, or both, fair market value shall be determined through the process of applying a yield capitalization model to the net proceeds (gross receipts less royalties paid less operating expenses). Operating expenses shall include all operating expenses, including, but not limited to, lease operating expenses, lifting costs, gathering, compression, processing, and transportation charges, if such expenses are incurred to sell the oil or natural gas to the “point of sale”. “Point of sale” is defined as the point where the buyer of the oil or natural gas takes ownership of and assumes the responsibility for such oil or natural gas.”
During the Doddridge County Chamber of Commerce’s Meet Your Candidate, Shawn Glaspell, President of the County Commission and incumbent for the open seat of the Commission, was asked by Oliver Araiza, moderator, about the upcoming massive slash in Doddridge County’s tax income from the change in the formula that is used to calculate the appraised value of the oil and gas wells.
Glaspell answered that Doddridge County will see @ a 44% decrease in the tax income from the wells.
He noted that where the Commission a few years ago had an income of around 18 million dollars, that next year’s (22/23 FY) income is budget to be @ 5 to 6 million dollars.
He followed by saying that through the years, the Commissioners, instead of spending every dime, had saved back funds for the on going projects like the water projects, building the new Annex, (Broadband and other projects) and would not be faced with going into debt to pay for the completion of them.
This massive cut will also affect the Doddridge County School Board, the Levy for General Services and the School Levy.
Speaking to Mr. Cheeseman, DC Superintendent of Schools, he indicated the Schools had projected a loss for the upcoming year at @ 7.5 million dollars but will be receiving $600,000 in State Aide (to be used towards teacher’s salaries).
He also stated this cut would not be affecting the special programs paid for by the County including the free meals for all students, College Classes and the ACT test but they did have to cut some fluff as well as change some job titles around to utilize the existing staff.
Unlike a Commission that can save tax income back for later use, the BOE is only allowed to save a small percentage of their income for their “Rainy Day Fund” but by utilizing the money which they had and the funds which are budgeted for the next year, the New Early Learning Academy will be paid in full, the Farm will be ready for use FY 22/23 and there are a few small upgrades slated for the future.
Dave Kelly, House Member from District 8 (Incumbent/Candidate) stated after the meeting: Clearly, I, along with the other Delegates from the oil an gas Districts from both sides of the aisle were staunchly opposed to this latest piece of legislation. HB 4336 was this sessions version of HB 2581. For whatever reason HB 2581 did not make it through the House Rules Committee resulting the introduction of HB 4336 this session. Our arguments this year against the legislation were the same as last year. Unfortunately, we didn’t have the votes to defeat it and it breezed through the Senate. Commissioner Glaspell, as well as the members of the BOE that were present last Thursday, echoed my concerns. These are times when we have to step back and remember that we have been sent to Charleston to represent the people of our Districts and not the special interests that stand to benefit greatly from this type of legislation.