Windfall Taxes

The biggest windfall resulting from energy prices will be that which the State of West Virginia will receive from the Coal and Oil & Gas industries. Huge surpluses in severance taxes could amount to hundreds of millions of dollars. Rather than increase spending as politicians usually do, now would be a good time for the state to put this surplus to work helping local governments and citizens who will bear the brunt of the higher price scenario.

The state enjoys an automatic hedge against price increases as it receives 5% of the gross revenue brought in by Coal and Gas Industries from their production. State coffers are growing as local governments will see budget busting costs for energy. If the state does not use some of the surplus funds for this purpose, local governments may be forced to raise taxes on citizens to meet their financial requirements.

It’s time lawmakers did the right thing for West Virginia.