West Virginia Legislature
2016 Regular Session
Senate Bill 523
By Senator Sypolt
[Introduced February 5, 2016;
Referred to the Committee on Energy, Industry and Mining; and then to the Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-13A-3f, relating to taxing water that is used in natural gas hydraulic fracturing; creating a special fund; and establishing how proceeds from that fund may be used.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §11-13A-3f, to read as follows:
ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
(a) Imposition of tax. -- For the privilege of engaging or continuing within this state of extracting water to be used in natural gas well hydraulic fracturing, there is levied and shall be collected from every person exercising such privilege a privilege tax.
(b) Rate of tax. -- The tax imposed in subsection (a) of this section is1¢ per gallon of water.
(c) Tax in addition to other taxes. -- The tax imposed by this section is in addition to all other taxes imposed by law.
(d) Collection and use of tax. –The tax shall be collected monthly, deposited in a new fund, the Water for Public Works Fund, and shall be used for the development and expansion of public water works.
NOTE: The purpose of this bill is to tax water that is used in natural gas hydraulic fracturing. The bill creates a special fund and establishes how proceeds from that fund may be used.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.