Switch From Coal to Gas Hurting W.Va. Tax Collections

Tuesday, 27 Nov 2012 11:44 AM

By Sandy Fitzgerald

  Comment  |
   Contact  |
|  A   A  
  Copy Shortlink
West Virginia's economy is likely to suffer an adverse impact as energy demands transition away from coal to cheaper natural gas, the state's deputy revenue official told lawmakers Monday.
Mark Muchow, speaking to a state finance committee, said coal production in the state was down 10 percent this year and state budget officials are looking at the growth in natural gas to make up for the coal industry decline, the Charleston Daily Mail reported.
In the meantime, the state could face lower severance tax collections during the transition. He said the collections, which helped the state budget during the recent recession, have already dropped $45.6 million this fiscal year.
"The decrease in severance taxes is greater than we projected," Muchow said. "And it's occurring in both coal severance and natural gas taxes."
He noted that coal severance taxes are down 22 percent compared to last year and natural gas collections are down 36 percent.
Muchow said blamed the decline on weak global economic growth, decreased domestic coal demand, and low natural gas prices. He said while natural gas production is up by 25 percent, the price per million BTUs has dropped from $4 last year to about $2 now.
The lower gas prices mean lower tax revenues for the state, Muchow said.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Passengers Push Plane on Icy Russian Runway (With Help of a Tractor)

Wednesday, 26 Nov 2014 20:45 PM

Passengers on a Russian plane got off to push the aircraft to help get it on the runway after it began slipping on ice i . . .

Bernie Tiede, Convicted Murderer Mortician, to Get New Sentencing

Wednesday, 26 Nov 2014 17:39 PM

Bernie Tiede, the mortician who was convicted of killing his companion Marjorie Nugent in 1996, will receive a new sente . . .

Chrysler Pentastar Logo Getting Phased Out With FCA Formation

Wednesday, 26 Nov 2014 15:51 PM

Chrysler's iconic Pentastar logo is being phased out as the company introduces a new logo in keeping with the newly form . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved