WV Bill Lowers Shale Well Severance Tax from 5% to 3% for 2 Years

West Virginia Senate Bill (SB) 706 proposes reducing the state's severance tax from 5% to 3% for new natural gas and oil wells drilled after June 30, 2026, that meet specific production thresholds. This reduction applies only to future projects, leaving existing wells at current rates. While severance taxes provide vital but volatile revenue—ranging from $98 million to $588 million in recent years—this legislation seeks to adjust the fiscal landscape for one of the state's most profitable resources. The bill is currently under review by the Senate Committee on Energy, Industry, and Mining and awaits further legislative approval.

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