Virginia Supreme Court Reverses Wise County on Gas Reserves Tax Assessment

The Virginia Supreme Court reversed lower court decisions and held that Wise County must assess natural gas reserves as part of mineral land taxation even when imposing a separate license tax on production activities. The taxpayers, owners of mineral lands with natural gas reserves, challenged the county’s assessment method. Wise County assessed gas wells but excluded the underlying gas reserves from property taxation while also imposing a license tax under Va. Code § 58.1-3712. The court held that under Va. Code § 58.1-3286, counties are required to assess all three subdivisions of mineral lands — including gas reserves — for ...