MARSHALL COUNTY, W.Va. — Marshall County officials are working to address a nearly $5 million revenue shortfall after an amended tax return filed by a local energy company resulted in a significant reduction in taxable value for the upcoming fiscal year.
County leaders recently questioned representatives from the West Virginia State Tax Division about how the change occurred after the county had already used state-provided figures to prepare its 2027 budget.
According to county officials, Expand Energy submitted an amended tax return that was later approved by the state. The revision reduced the company’s taxable value, resulting in lower projected tax revenues for Marshall County, the Marshall County Board of Education, and other local entities.
State tax officials told commissioners the amended filing included deductible post-production expenses that were not included in the company’s original return. Under current procedures, taxpayers are permitted to submit additional information through the appeals process without penalty.
County Administrator Betsy Frohnapfel said the timing of the adjustment has created major budgeting challenges because the county relied on tax figures supplied by the state when preparing its budget.
Officials said the Marshall County Board of Education is expected to experience the largest financial impact, while the county’s general fund will also see a significant reduction.
County leaders expressed frustration during a recent commission meeting, noting that similar tax-related errors have affected local revenues multiple times since 2021. Marshall County has already reduced spending by millions of dollars in recent years due to declining revenue.
While officials believe the county can absorb the current loss, they warn that continued reductions could eventually affect funding for community services, volunteer fire departments, infrastructure projects, parks, and other local programs.
The Marshall County Commission is expected to continue discussions on the issue when it meets again on July 7.
