CHARLESTON, W.Va. (AP) - Local government entities such as cities and public school systems could lose some tax funding after West Virginia officials decreased the tax rate for temporarily idled coal mining equipment.
The change affects mining equipment that’s expected to start back up again, said Property Tax Division director Jeff Amburgey. Lawmakers such as former senator Art Kirkendoll have said a lower tax rate may encourage companies to keep equipment in West Virginia mines.
Former Raleigh County Assessor Drema Evans, who left the position last week, told the Charleston Gazette-Mail (https://bit.ly/2i6tOJj) her office’s preliminary estimates indicate that the change will bring about a $1 million countywide tax revenue decrease, leading to less funding for local governments.
Any loss from the change would add to financial pressures West Virginia public schools already are facing, including an $11.1 million statewide, mid-school-year cut in state school aid funding.
Amburgey said he couldn’t provide statewide effect figures.
“I’m not trying to take money away from the counties,” Amburgey said. “I’m not trying to help the coal industry. I’m just trying to get the answers correct to the best of my ability.”
Generally, the taxed value of property is 60 percent of its market value. Once the 40 percent of value is subtracted, tax rates are applied to the remaining 60 percent.
The change means that for the discounted idled coal mining equipment, the market value is first cut by 70 percent, and then the taxed value is 60 percent of the 30 percent of value that remains, Amburgey said.
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Information from: The Charleston Gazette-Mail, https://wvgazettemail.com.
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