Been receiving royalties for a few years from NNE on 21 wells. Got a tax bill from the state that went up over 1000%…my question is that I have taxes deducted for the state from my royalty payments by NNE…so why is the state then taxing me separately? That’s double taxation. Where is the money NNE is taking out sent to?
Debra,
The State of West Virginia charges a personal property tax on mineral rights even if you inherited them from a family member. The operator sends a royalty statement to the county for every unit owner when the units go into production. Every year you pay this personal property tax, yes it’s crooked but the State has been doing this for a long time. I’ve heard from others that the taxes have doubled or more in the past month.
it went from 100 units for years to over 4000…yet checks dropped from $300 monthly to around $100…my cousin and I own together …I inherited my brothers share last yr when he passed…I have 2 more contracts than her…yet we get the same amount…fishy to say the least…they are making 250k …I get $1.98???
The tax NNE pays on your behalf is the severance tax. That should be 5% of the value of the gas.
The tax bill that went up 1000% is based on the value of the gas produced and is intended to set a value on the oil and gas in the ground by using the amount of gas produced and the royalty paid to you on that gas. The tax rate should be somewhere around 2.5-3.5% in most cases, but the calculation is complex. A lot of people have complained about it, and the legislature was supposed to fix it during the last legislative session, but they didn’t. There’s not much that can be done other than to complain to the legislature.