H. B. 4648
(By Mr. Speaker, Mr. Kiss, and Delegates Frederick,
Staton, Kominar, Caruth, Browning and Yeager)
[Introduced February 26, 2004; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-13A-3 of the code of West Virginia,
1931, as amended, relating to severance taxes generally; and
providing that the reduced tax rate applies to underground
mines producing coal from seams of less than thirty-two
inches.
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.
(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. -- 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.
(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
one thousand nine hundred ninety-three, shall apply to gross
proceeds derived after the thirty-first day of May of such year.
The language of this section, as in effect on the first day of
January of such year, shall apply to gross proceeds derived prior
to the first day of June 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 thirty-two 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.
NOTE: The purpose of this bill is to provide that the reduced
tax rate applies to underground mines producing coal from seams of
less than thirty-two inches.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.