Bill > SB706

This bill modifies the severance tax, which is a tax on the privilege of extracting natural gas or oil, for newly drilled wells in West Virginia. Specifically, for any new well drilled and completed after June 30, 2026, the severance tax rate will be reduced to three-and-one-quarter percent for the first 24 consecutive months from the date of its first sale. A "new well" is defined as one that has been hydraulically fractured. Following this initial 24-month period, the standard severance tax rate will apply. Additionally, the bill adjusts the allocation of this severance tax revenue to counties and municipalities for these new wells, dedicating 15.5% for the initial 24 months and then 10% thereafter, ensuring continued support for local governments.

Agriculture and Natural Resources, Budget and Finance

http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=706&year=2026&sessiontype=RS&btype=bill