UNION — While issues connected to property rights-of-way linger, Monroe County appears destined to soon see construction begin on the controversial Mountain Valley Pipeline.
But just how — and how much — the pipeline will be taxed remains something of a puzzle. Monroe County Assessor Norbert Netzel has taken steps to ensure that his county get its share of that tax revenue, whatever it may turn out to be.
Commonly referred to as the MVP, the pipeline will carry natural gas some 300 miles from Wetzel County, through the middle of West Virginia, and on to Pittsylvania County, Va. Twenty-two miles of that path run through Monroe County.
Netzel told county commissioners Wednesday that he has purchased a drone for $1,400 and is in the process of obtaining a federal license to pilot the battery-powered aircraft. He said he plans to keep an eye from the sky on the equipment and materials being maintained by pipeline construction crews in Monroe County. That way, he said, he will be able to document the taxable inventory.
Netzel said he has been in touch with state Tax Department officials, trying to glean what little concrete information he can. Thus far, he said, he has ascertained that the county will be able to levy taxes on equipment and on the massive stacks of pipe until they are buried. Once construction on the pipeline is complete, the state will take over responsibility for determining rates and collecting revenue.
But the assessor warned commissioners that he believes the West Virginia Legislature is poised to revive a tax reform proposal early next year that would do away with all of the state’s personal property taxes — including business inventory and vehicles.
Because such a change would lead to massive budget deficits for counties, public school systems and municipalities, the proposed legislation provides for a potential tripling of real estate taxes, Netzel said. The catch, he noted, is that it will be up to individual county commissions to hike real estate levy rates and take the political heat for the decision.
County Clerk Donald Evans agreed with Netzel’s evaluation of the legislation that was proposed but did not pass earlier this year, saying all of the commissioners should read the bill in its entirety.
Netzel also pointed out that, if the bill were to pass in 2018, voters statewide would then have to be afforded the opportunity to vote on the measure. But, he said, with the bill shifting the tax burden onto property owners, while increasing the homestead exemption for homeowners over the age of 65, he expects that elderly homeowners and people who own little more than a vehicle would probably be inclined to vote for the measure.
Commissioners agreed to begin writing letters to the governor and key legislators objecting to the anticipated legislation.
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It does appear that construction materials will be stored in some quantity in Monroe County.
Just a couple of weeks ago, the board of directors of the Greenbrier Valley Economic Development Corporation — which owns Fountain Springs Industrial Park in Monroe County — voted to lease some of that property to MVP and to allow lessee M-Rock to sublease an additional 5,000 square feet to MVP.
Under the terms of the agreement, GVEDC and M-Rock will split (50/50) rental income of $231,000 a year while the MVP contract is in place.
According to an undated letter written to the GVEDC by MVP employee Janna Arnold, the Fountain Springs property will be used as a “pipeline contractor yard.” MVP will also use adjacent parking lots and office space, provided by M-Rock, Arnold wrote.