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WELLSBURG -- The Brooke County Commission must decide whether to pursue taxes the state initially failed to calculate for 28 natural gas wells and face possible litigation from affected property owners and gas companies or say goodbye to $4.4 million that would have been divided among the school district, local fire departments and various county departments and agencies.
Commission President A.J. Thomas said he and the other commissioners learned in September an error had been made in calculating taxes on gas produced by wells in several counties that had gone into production in 2021.
It's been the state's practice to estimate annual production for each well on the gas it produced on its first day of operation.
But Thomas noted that did not occur for Brooke County wells that went into production in 2021, resulting in that property being undervalued.
According to previous reports, more than $30 million in taxes should have been collected for active gas wells in Brooke, Doddridge, Harrison, Marshall, Monongalia, Pleasants, Tyler and Wetzel counties.
Tyler County has been said to have lost nearly $16 million because of the error.
Thomas said the commission hadn't anticipated the county's share of the revenue and hadn't budgeted for it.
But he and other county officials have suggested the state should make amends for its error in some way.
On Tuesday, the commissioners heard from Frank Capehart, assistant director of the state tax division; and Emily Cramer, assistant deputy commissioner of taxpayer engagement for the division.
Through a phone call placed on speaker for those attending Tuesday's county commission meeting, the two indicated the commissioners may accept or reject the state tax division's error.
Cramer said pending their decision, the state tax division can collaborate with local tax officials to determine the most efficient way to correct it and that may vary from county to county.
Deputy Brooke County Assessor Heather Weir objected to that position, saying, "This is a state mistake and the state needs to apply a uniform means of correction."
But Cramer said that would violate state code involving the collection of taxes by counties.
Thomas noted the school district, fire departments and other county entities will have lost significant revenue if the commission doesn't seek to collect, but the commission is likely to be sued if it does.
He asked Cramer, "Will the state tax department cover judgment (for financial compensation) when we are sued?"
Cramer replied, "No, sir."
Thomas said the commission will seek input from legal counsel before making a decision.
"We just want to be sure we see the full picture before doing anything," he said.
Dee Parr, treasurer for Brooke County Schools, questioned the fairness of seeking the taxes now.
"This is money people thought was long gone. How can they be expected to pay now?" she asked.
Parr asked whether an independent consultant was responsible, as has been reported by some sources.
Capehart said the error was "a programmed miscalculation in the system."
Parr asked whether the state will attempt to collect the taxes without the counties' consent.
Cramer replied, "We're not going to collect it outside of your purview."
Thomas asked whether failing to collect the taxes will affect the county's eligibility for state grants and other funds.
Cramer said she doesn't believe it would because the missed taxes were not included in the county's budget.
The commission heard from a few property owners who said they lacked confidence future tax collections will be accurate or were unsure of the amount they presently owe.
Capehart said measures are being taken to prevent future errors.
Brooke County Assessor Tom Oughton said property owners who are uncertain of the taxes they currently owe may come to his office for clarification.
In other business, the commission adopted a resolution honoring Bill Schwertfeger of Follansbee on his 100th birthday.
It noted his military service during World War II, in which he was awarded the Bronze Star for saving a fellow soldier; more than 30 years as an educator in Brooke and Jefferson counties and two terms as a Follansbee Council member.
Attendees sang "Happy Birthday" to Schwertfeger and delivered a standing ovation for Schwertfeger, who was presented a birthday cake by the commission.
Schwertfeger also was recognized during Tuesday's Follansbee Council meeting, and a resolution in his honor was approved Tuesday in the West Virginia Senate.
It also was announced that the county courthouse will be closed Monday for Presidents Day.