Gas Well Royalty Taxes Affirmed by West Virginia Appeals Court

The owners of oil and gas royalty interests failed to convince a West Virginia appeals court that their property taxes were too high due to the state’s overvaluation.

West Virginia Tax Commissioner Matthew Irby levied $71,000 in property taxes for 2024 on the petitioners’ one-half royalty interests in 14 natural gas wells. The West Virginia Intermediate Court of Appeals in a Thursday unpublished opinionrejected the owners’ arguments that Irby used the wrong method for valuing the property.

• The owners argued that Irby’s use of the yield capitalization valuation model doesn’t comply with a state law requirement that all property ...