Property Tax Alert: West Virginia

March 2004

The West Virginia State Tax Department has issued a notice indicating it relies primarily on the income approach when valuing reserve oil and gas properties for property tax purposes. The income approach, rather than the cost approach or the market approach, is based on the assumption that property is worth the future income that it will generate for a prospective buyer and, thus, the State Tax Department has developed a method to value the per-acre market value of reserve (non-producing acreage) oil and gas properties.

Please contact Rash & Associates for more information.