State Treasurer Analyzes Severance Tax Revenue

A West Virginia Treasury report examines the role of coal, natural gas and oil taxes in state revenue.

Updated on Nov. 10, 2026 in Oil and Gas

Bold vector editorial illustration of stacked coal blocks beside a steel gas pipe on a flat Appalachian ridge, in teal, mustard and coral. — West Virginia's Treasury says severance taxes on coal, natural gas and oil have averaged 9% of the state's General Revenue Fund over the past 25 years. AI Illustration. Upload story photo >

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The West Virginia State Treasurer's Office released an analysis titled "Importance of West Virginia Severance Tax," prepared by Treasury Strategic Analyst Mark Muchow. The report finds severance tax revenue has averaged 9% of the state's General Revenue Fund over the past 25 years.

Why it matters

The analysis looks at how heavily West Virginia's budget depends on taxes from coal, natural gas and oil production as policymakers weigh further tax reductions. Expanding natural gas output is a factor in the state's revenue picture.

Severance tax averaged 9% of West Virginia's General Revenue Fund over 25 years, a span that encompasses the state's shifting coal and natural gas output. The report does not project how future production or proposed tax reductions would alter that share.

The players

West Virginia State Treasurer's Office

The state agency responsible for managing West Virginia's finances, including revenue analysis and investment of public funds.

Mark Muchow

A Treasury Strategic Analyst with the West Virginia State Treasurer's Office who prepared the severance tax report.

The details

The report, prepared by Treasury Strategic Analyst Mark Muchow, examines the historical role of coal, natural gas and oil production in the state's economy and the taxes those industries generate. It also outlines challenges policymakers face as they consider additional tax reductions.

Over the past 25 years, severance tax averaged 9% of the General Revenue Fund.
The Treasury report was published on November 10, 2026.

Oil and Gas Context

The analysis sits within West Virginia's long reliance on severance taxes from its coal industry, now joined by expanding natural gas production. It frames how that revenue base supports the General Revenue Fund as the state considers tax reductions.

Because severance tax supplies a meaningful share of state general revenue, changes to these taxes could affect funding for state services that residents rely on. The report does not specify any proposed rate changes or their timing.

The takeaway

Revenue tied to coal, natural gas and oil remains a central piece of West Virginia's budget, so tax policy decisions in these industries carry broad fiscal consequences for the state.