Senate Bill No. 15
(By Senators Bailey and Unger)
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[Introduced January 9, 2008; referred to the Committee on Health
and Human Resources; and then to the Committee on Finance.]
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A BILL to amend and reenact §11-13A-3 of the Code of West Virginia,
1931, as amended, relating to reducing, and ultimately
eliminating, the severance tax imposed on behavioral health
care providers.
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 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;
reduction and elimination of tax imposed on
behavioral health care providers.
(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 the privilege an annual privilege tax.
(b)
Rate and measure of tax. -- The tax imposed in subsection
(a) of this section
shall be is 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.
(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 applies 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 is in addition to
all other taxes imposed by law.
(e)
Effective date. -- This section, as amended in the year
one thousand nine hundred ninety-three,
shall apply applies to
gross proceeds derived after the thirty-first day of May of
such
that year. The language of this section, as in effect on the first
day of January of
such that year,
shall apply applies to gross
proceeds derived prior to the first day of June of
such that year
and, with respect to
such the 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 eleventh day
of April, one thousand nine hundred ninety-seven, 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 is 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 is 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 is 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
eleventh day of April, one thousand nine hundred ninety-seven, 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 that
date.
(iii) The seam thickness
shall be is based on the weighted
average isopach mapping of actual coal thickness by mine as
certified by a professional engineer.
(g) Reduction of severance tax rate for persons furnishing
certain health care services. -- The rate of tax imposed in
subsection (b) of this section on any person exercising the
privilege of engaging within this state in the business of
furnishing certain health care services is reduced in accordance
with the following schedule:
(i) Effective the first day of July, two thousand eight, the rate of tax imposed on the gross value of health care services
provided is reduced to two and one-half percent;
(ii) Effective the first day of July, two thousand nine, the
rate of tax imposed on the gross value of health care services
provided is reduced to two percent;
(iii) Effective the first day of July, two thousand ten, the
rate of tax imposed on the gross value of health care services
provided is reduced to one and one-half percent;
(iv) Effective the first day of July, two thousand eleven, the
rate of tax imposed on the gross value of health care services
provided is reduced to one percent;
(v) Effective the first day of July, two thousand twelve, the
rate of tax imposed on the gross value of health care services
provided is reduced to one half of one percent; and
(vi) Effective the first day of July, two thousand thirteen,
the tax imposed on the gross value of health care services provided
is eliminated.
NOTE: The purpose of this bill is to reduce and ultimately
eliminate the severance tax imposed on behavioral health care
providers.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.