Coalbed Methane Gas Severance Tax

West Virginia law provides for the collection and distribution of a severance tax on coalbed methane gas. A portion of this tax is dedicated for the use and benefit of economic development entities and county commissions within West Virginia.

In order to provide a procedure for the distribution of the coalbed methane gas severance tax, a fund has been established in the State Treasurer's Office. The State Tax Commissioner deposits the proceeds received by his office into this revenue account. The monies in the coalbed methane gas distribution fund are then distributed annually by the State Treasurer to the counties entitled to the money. Seventy-five percent (75%) shall be provisionally allocated for the various counties in which the coalbed methane was produced. The remaining twenty-five percent (25%) shall be provisionally allocated to the counties of the state in which no coalbed methane was produced.

Should you have any questions concerning the distribution amount, you should contact the State Tax Department at 1-800-982-8297 or 304-558-3333.