H. B. 4656
(By Delegate Hubbard)
[Introduced February 24, 2000; referred to the
Committee on Finance.]
A BILL to amend article thirteen-a, chapter eleven of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
three-d, relating to the imposition of an additional privilege
tax on the severance of natural resources to create and fund
the West Virginia education excellence fund.
Be it enacted by the Legislature of West Virginia:
That article thirteen-a, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
three-d, to read as follows:
Article 13A. SEVERANCE TAXES.
§11-13A-3d. Imposition of additional tax on the privilege of
severing natural resources; creation of public education excellence fund.
(a) Imposition of tax.-- For the privilege of continuing
within this state in the business of severing, extracting, reducing
to possession and producing for sale, profit or commercial use any
natural resource, product or product listed and taxed under
sections three, three-a, three-c and four of this article, there is
hereby levied and shall be collected from every person exercising
this privilege an annual privilege tax which shall be dedicated to
the funding of the West Virginia education excellence fund.
(b) Rate and measure of tax.-- The tax imposed in subsection
(a) of this section shall be one percent of the gross value of the
natural resources produced as shown by the gross proceeds derived
from the sale thereof by the producer.
(c) Tax in addition to other taxes. -- The tax imposed by
this section shall apply to all persons severing natural resources
in this state as those resources are defined in sections three,
three-a, three-b, three-c and four of this article and shall be in
addition to all other taxes imposed by law.
(d) Dedication of revenue from tax.-- There is hereby created
the West Virginia education excellence fund. All revenues received
pursuant to this section shall be dedicated to this fund. This fund
shall be managed by the West Virginia investment management board
created pursuant to section three, article six, chapter twelve of
this code. No principal amounts of the fund may be expended which would leave a balance of less than two hundred fifty million
dollars in the fund. Beginning with the fiscal year starting the
first day of July, two thousand, and every year thereafter, all
interest earned from the investment of the fund shall be
transferred to the general fund for the sole use of increasing
funding for public education above and beyond the amount calculated
as the preliminary computation of funds necessary to fully fund the
state schools support program for the next school year. Any
principal in excess of two hundred fifty million dollars
accumulated by the fund may be transferred to the general fund for
the sole purpose for which the interest of this fund may be used by
act of the Legislature.
NOTE: The purpose of this bill is to impose an additional one
percent severance tax on natural resources to create and fund the
West Virginia education excellence fund to produce additional
funding for public education.
§11-13-3d is new; therefore, strike-throughs and underscoring
have been omitted.