Home New mexico tax Eddy County ends fiscal year 2022 with $8 million in tax revenue

Eddy County ends fiscal year 2022 with $8 million in tax revenue

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Soaring crude oil prices helped Eddy County end fiscal 2022 on a high note as revenue from oil and gas tax collection exceeded budget expectations, according to department data. Eddy County Finance.

Eddy County Chief Financial Officer Roberta Smith said the county collected $8.8 million in tax revenue from oil and gas activities in June, the last month of fiscal 2022.

Fiscal years in Eddy County begin July 1 and end June 30.

After:Rising oil prices lead to increased revenue for Eddy County government

The June tax collections were based on oil and gas activity in Eddy County in March, with operations in the Permian Basin producing 18.2 million barrels of oil, Smith said.

The price of West Texas Intermediate (WTI) sweet crude oil ranged from $99 a barrel to $115 a barrel in March, according to information from the U.S. Energy Information Administration (EIA).

WTI was the most actively traded energy commodity in the world, according to the Chicago Mercantile Exchange.

June oil and gas production collections were the highest for the year.

Eddy County began fiscal year 2022 with $3.5 million in oil and gas tax collections in July 2021. July collections were based on business activity in the county’s oilfields in April 2021, when the average WTI was around $62 per barrel, according to EIA data.

WTI prices rose nearly $40 from April 2021 to April 2022, the EIA noted.

After:Oil and gas touted by southeast New Mexico executives, economists warn of volatility

Eddy County was projecting $25 million in oil and gas tax recovery at the start of fiscal year 2022. Smith said Eddy County’s actual revenue was $43 million higher than expected. .

She said production at the oilfields located in Eddy County averaged 65 million barrels of oil for fiscal year 2022 with an average WTI price of $75. Smith said the Eddy County budget was developed on the assumption that 13 million barrels of oil would be produced per month with a price of $47 a barrel in that fiscal year.

After:Eddy County’s $158 million budget for 2023 includes funds for full-time fire and emergency personnel

Smith said the county raised $3.9 million in GRT in June.

“Overall, for the fiscal year, we raised over $16 million against a budget of $22.2 million, she said.

Smith said Eddy County raised $39 million in GRT as of the end of fiscal 2022.

“It was a 110% increase from what we raised last year,” she said.

The county raised $16.8 million in GRT in fiscal year 2021, according to county finance data.

After:Low oil prices in December have no impact on Eddy County’s oil and tax revenues in March

The New Mexico Department of Taxation and Revenue has defined GRT as money received through various business activities.

Mike Smith can be reached at 575-628-5546 or by email at [email protected] or @ArgusMichae on Twitter.