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Introduced Version House Bill 3262 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 3262


(By Delegates Klempa, Guthrie, Kominar,

Eldridge, Marshall, Perdue and Evans)

[Introduced March 20, 2009; referred to the

Committee on Finance.]




A BILL to amend and reenact §11-13A-3 of the Code of West Virginia, 1931, as amended; and to amend and reenact §11-27-36 of said code, all relating to health care provider tax generally; providing a tax of five percent of the gross receipts of the tax payer until July 1, 2010; and allowing certain providers to reduce gross receipts by contractual allowances.

Be it enacted by the Legislature of West Virginia:

That §11-13A-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that §11-27-36 of said code be amended and reenacted, all to read as follows:

ARTICLE 13A. SEVERANCE TAXES.

§11-13A-3. Imposition of tax or privilege of severing coal, limestone or sandstone, or furnishing certain health care services, effective dates therefor; reduction of severance rate for coal mined by underground methods based on seam thickness.

(a) Imposition of tax. -- Upon every person exercising the privilege of engaging or continuing within this state in the business of severing, extracting, reducing to possession and producing for sale, profit or commercial use coal, limestone or sandstone, or in the business of furnishing certain health care services, there is hereby levied and shall be collected from every person exercising such privilege an annual privilege tax.
(b) Rate and measure of tax. -- (1) The tax imposed in subsection (a) of this section shall be five percent of the gross value of the natural resource produced or the health care service provided, as shown by the gross income derived from the sale or furnishing thereof by the producer, or the provider of the health care service except as otherwise provided in this article. In the case of coal, this five percent rate of tax includes the thirty-five one hundredths of one percent additional severance tax on coal imposed by the state for the benefit of counties and municipalities as provided in section six of this article.
(2) The tax imposed by subsection (a) of this section shall be five percent of the gross value of the health care services provided by the provider of the health care service. The tax rate shall be eliminated on the effective date set forth in subsection (j), section thirty-six, article twenty-seven, chapter eleven of this code.
(c) "Certain health care services" defined. -- For purposes of this section, the term "certain health care services" means, and is limited to, behavioral health services.
(d) Tax in addition to other taxes. -- The tax imposed by this section shall apply to all persons severing or processing (or both severing and processing) in this state natural resources enumerated in subsection (a) of this section and to all persons providing certain health care services in this state as enumerated in subsection (c) of this section and shall be in addition to all other taxes imposed by law.
(e) Effective date. -- This section, as amended in the year 1993, shall apply to gross proceeds derived after May 31 of such year. The language of this section, as in effect on January 1 of such year, shall apply to gross proceeds derived prior to June 1 of such year and, with respect to such gross proceeds, shall be fully and completely preserved.
(f) Reduction of severance tax rate. -- For tax years beginning after the effective date of this subsection, any person exercising the privilege of engaging within this state in the business of severing coal for the purposes provided in subsection (a) of this section shall be allowed a reduced rate of tax on coal mined by underground methods in accordance with the following:
(i) For coal mined by underground methods from seams with an average thickness of thirty-seven inches to forty-five inches, the tax imposed in subsection (a) of this section shall be two percent of the gross value of the coal produced. For coal mined by underground methods from seams with an average thickness of less than thirty-seven inches, the tax imposed in subsection (a) of this section shall be one percent of the gross value of the coal produced. Gross value is determined from the sale of the mined coal by the producer. This rate of tax includes the thirty-five one hundredths of one percent additional severance tax imposed by the state for the benefit of counties and municipalities as provided in section six of this article.
(ii) This reduced rate of tax applies to any new underground mine producing coal after the effective date of this subsection, from seams of less than forty-five inches in average thickness or any existing mine that has not produced coal from seams forty-five inches or less in thickness in the one hundred eighty days immediately preceding the effective date of this subsection.
(iii) The seam thickness shall be based on the weighted average isopach mapping of actual coal thickness by mine as certified by a professional engineer.
ARTICLE 27. HEALTH CARE PROVIDER TAXES.
§11-27-36. Phase out and elimination of tax on services of individual practitioners.

(a) Effective July 1, 2001, the rate of the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one and five hundred seventy-five thousandths percent; and
(2) Section sixteen of this article is reduced to one and eight-tenths percent; and
(3) Section seven of this article is reduced to four and ninety-five one hundredths percent.
(b) Effective July 1, 2002, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one and four-tenths percent; and
(2) Section sixteen of this article is reduced to one and six-tenths percent; and
(3) Section seven of this article is reduced to four and four-tenths percent.
(c) Effective July 1, 2003, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one and two hundred twenty-five thousandths percent; and
(2) Section sixteen of this article is reduced to one and four-tenths percent; and
(3) Section seven of this article is reduced to three and eighty-five hundredths percent.
(d) Effective July 1, 2004, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one and five-hundredths percent; and
(2) Section sixteen of this article is reduced to one and two tenths percent; and
(3) Section seven of this article is reduced to three and three-tenths percent.
(e) Effective July 1, 2005, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to eight hundred seventy-five thousandths percent; and
(2) Section sixteen of this article is reduced to one percent; and
(3) Section seven of this article is reduced to two and seventy-five hundredths percent.
(f) Effective July 1, 2006, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to seven-tenths percent; and
(2) Section sixteen of this article is reduced to eight-tenths percent; and
(3) Section seven of this article is reduced to two and two-tenths percent.
(g) Effective July 1, 2007, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to five hundred twenty-five thousandths percent; and
(2) Section sixteen of this article is reduced to six-tenths percent; and
(3) Section seven of this article is reduced to one and sixty-five hundredths percent.
(h) Effective July 1, 2008, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to thirty-five hundredths percent; and
(2) Section sixteen of this article is reduced to four-tenths percent; and
(3) Section seven of this article is reduced to one and one-tenth percent.
(i) Effective July 1, 2009, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one hundred seventy-five thousandths percent; and
(2) Section sixteen of this article is reduced to two-tenths percent; and
(3) Section seven of this article is reduced to fifty-five hundredths percent.
(j) Effective July 1, 2010, the tax imposed under sections five, six, seven, twelve, thirteen, fourteen, sixteen, seventeen, eighteen, and nineteen of this article, and subdivision (2), subsection (a), section three, article thirteen-a, chapter eleven is eliminated.



NOTE: The purpose of this bill is to provide a tax of five percent of the gross receipts of a behavioral health service provider until July 1, 2010; and to allow certain providers to reduce gross receipts by contractual allowances.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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