SENATE CONCURRENT RESOLUTION NO. 20

(By Senators Ross, Helmick, Kessler and Minear)


Requesting the Joint Committee on Government and Finance, in cooperation with the Department of Tax and Revenue, conduct a study to review and consider, for a revenue neutral result, the benefit of replacing ad valorem taxes on natural resources with an expanded severance tax on natural resources and, if feasible, to develop a plan for distribution of the revenue between the education systems, county governments and city governments of the state.

Whereas, Ad valorem taxes, by their nature, constitute a significant burden on both the citizens of the state and the state's industry; and
Whereas, The ad valorem tax burden on the citizenry and industry of this state has dramatically increased over the past several years, particularly upon those persons having fixed incomes; and
Whereas, A removal of ad valorem taxes would provide substantial relief to the people of this state and make the state a more attractive venue for heavy industry; and
Whereas, Other states have successfully implemented a conversion from ad valorem taxation to a form of universal severance taxation; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance, in cooperation with the Department of Tax and Revenue, study, review and consider a plan to abolish ad valorem taxes on natural resources in this state and impose, for a revenue neutral result, an expanded severance tax on natural resources; and, be it Further Resolved, That the Joint Committee on Government and Finance report to the Legislature in the year two thousand on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.