MARSHALL COUNTY - Assessed property values in Marshall County increased "an extraordinary" $278 million for tax year 2012 - a 17.5 percent jump that can be attributed to growth in the natural gas and coal industries, said county Assessor Chris Kessler.
The assessor addressed county commissioners while they sat as a Board of Review and Equalization on Tuesday. Although no residents appeared to appeal their assessed property values, Kessler had plenty of information to share.
Kessler said the increase in real and personal property values does not yet include figures related to public utilities. When those amounts are provided by the State Tax Department, Kessler estimated the total assessed value of all property in Marshall County will be about $2.2 billion. With tax-exempt property added to that amount, Kessler said the total assessed value of property in the county will be nearly $2.4 billion.
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Marshall County Assessor Chris Kessler, left, talks about the increase in county property values for the 2012 tax year as Jeff Buzzard looks on. He attributed the $278 million jump to growth in the gas and coal industries.
Kessler cited construction of processing and fractionation facilities by companies working in the natural gas industry - such as Caiman Energy, Markwest Liberty Midstream and Dominion Resources - as a major reason for the increased values. He said these facilities separate "wet" gas products including ethane, propane, butane and pentane from the "dry" methane gas.
He noted he hopes the county will achieve even greater growth by luring a multibillion-dollar ethane cracker plant that would process ethane to produce ethylene, a component in plastics. Commissioners echoed that sentiment, stressing such a plant would provide jobs for many residents.
"We're still in the running," said Commission President Jason "Jake" Padlow as he also commended state legislators for passing a tax incentive to attract potential cracker developers. "If it doesn't come here, I hope it lands somewhere real close. They're down to three or four locations, and we'll probably hear an announcement at the beginning of February."
Kessler said royalty payments are starting to flow from gas drilling companies such as Chesapeake Energy, AB Resources, Trans Energy, CNX and others to the landowners with whom they secured leases in recent years. This has led to an increase in tax revenue, he said.
The assessed values of owner-occupied structures climbed as well. Kessler cited an overall increase of $15 million, but said $5 million of that stems from new construction.
"That is probably a reflection of money people are getting from gas leases," Kessler said.
The 2.6-percent increase is consistent with recent years, Kessler said, noting to comply with state guidelines, assessments must be at a level of 90 percent of valid residential sale prices.
"For tax year 2012, we do meet that mandate, but with the strong increase in overall assessed values, I encourage the county commission and school board to reduce their levy rates to ease the tax burden on individual homeowners," Kessler said in a statement released during the meeting.
Kessler also praised Consol Energy for investing in its Marshall County mines - installing a new conveyor belt system at Shoemaker in Benwood and making upgrades to its preparation plant at McElroy south of Moundsville. Commissioner Don Mason noted Consol's work has pushed Marshall County near to the front of the line among coal-producing counties in West Virginia.
"We're the second highest coal-producing county in the state," he said.
"I don't think coal is going anywhere anytime soon," Padlow added. "It's been the backbone of Marshall County for a long time."
The commission will sit as a Board of Review and Equalization again at 6 p.m. Friday at the courthouse in Moundsville. Property owners who wish to appeal their assessment for 2012 should call Kessler's office at 304-845-1490 before scheduling a hearing with the board.