Mildred J. Mazgaj v. Matthew R. Irby, in his official capacity as State Tax Commissioner of West Virginia
24-ica-395
| Intermediate Court of Appeals ... | Jun 27, 2025Background
- Mildred J. Mazgaj owned mineral interests in seven natural gas wells in Ohio County, WV, comprising approximately 52.5 acres.
- The West Virginia Tax Commissioner substantially increased the appraised value of Mazgaj’s interests for tax year 2023, which led to a formal appeal by Mazgaj.
- The 2023 appraisal was based on reported 2021 royalty receipts using a yield capitalization model as set by statute and regulations.
- Mazgaj argued the appraisal didn't follow emergency legislative rules regarding how to treat acreage, and sought a recalculation.
- The Office of Tax Appeals (OTA) conducted a hearing, upheld the Tax Commissioner’s valuation, and Mazgaj appealed that decision to the Intermediate Court of Appeals of West Virginia.
- The Intermediate Court reviewed under standard administrative appeal rules, considering both procedural and substantive challenges.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Burden of proof standard applied | OTA used wrong (clear & convincing) standard instead of preponderance | OTA's order does not state incorrect standard | Plaintiff failed to show error; OTA presumed to follow law |
| Relation of royalty valuation to acreage | Valuation must apply acreage caps from emergency rule | Statute requires income approach, not acreage basis | Law requires income/royalty-based valuation; Mazgaj’s method rejected |
| Application and relevance of definitions | Definitions of "communitized area" and "producing property" change valuation process | Definitions do not affect outcome—statute controls | Definitions don't alter the mandated appraisal formula |
| OTA's equitable authority | OTA erred in claiming no power for equitable relief | Not directly addressed, as claim intertwined with failed arguments on valuation | No ruling necessary; relief properly denied on merits |
Key Cases Cited
- Griffith v. ConAgra Brands, Inc., 728 S.E.2d 74 (W. Va. 2012) (administrative law judge’s factual findings not set aside unless clearly wrong; law reviewed de novo)
- Antero Res. Corp. v. Steager, 851 S.E.2d 527 (W. Va. 2020) (standards for review of OTA decisions on tax matters)
- Morgan v. Price, 150 S.E.2d 897 (W. Va. 1966) (appellant must affirmatively show error in administrative or trial order)
- State v. J.S., 757 S.E.2d 622 (W. Va. 2014) (if court order silent on a point, presumed to have performed duty correctly)