SB576 SFA Ferns 3-29 #6
Senator Ferns moved to amend the bill on page one, after the enacting section, by inserting the following:
CHAPTER 11. TAXATION.
ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
§11-13A-3a. Imposition of tax on privilege of severing
natural gas or oil
; Tax Commissioner to develop a uniform reporting form.
(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of severing natural gas or oil for sale, profit or commercial use, there is hereby levied and shall be collected from every person exercising such privilege an annual privilege tax: Provided, That effective for all taxable periods beginning on or after January 1, 2000, there is an exemption from the imposition of the tax provided in this article on the following: (1) Free natural gas provided to any surface owner; (2) natural gas produced from any well which produced an average of less than five thousand cubic feet of natural gas per day during the calendar year immediately preceding a given taxable period; (3) oil produced from any oil well which produced an average of less than one-half barrel of oil per day during the calendar year immediately preceding a given taxable period; and (4) for a maximum period of ten years, all natural gas or oil produced from any well which has not produced marketable quantities of natural gas or oil for five consecutive years immediately preceding the year in which a well is placed back into production and thereafter produces marketable quantities of natural gas or oil.
(b) Rate and measure of tax. – (1) The tax imposed in subsection (a) of this section shall be five percent of the gross value of the natural gas or oil produced, as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided in this article.
(2) On and after July 1, 2017, the rate of tax on the privilege of severing natural gas for sale, profit, or commercial use shall be:
When the annualized gross value
of natural gas per MCF is: ____________The rate of tax is:
Under $2.50: ________________________ 4%
At least $2.50 but less than $4.00: _______ 5%
At least $4.00 but less than $6.00: ______ 6%
At least $6.00 but less than $8.00: _______ 7%
At least $8.00 but less than $10.00: _________________ 8%
At least $10.00 and over: ________________________9%
(c) Tax in addition to other taxes. -- The tax
imposed by this section shall apply to all persons severing gas or oil in this
state, and shall be in addition to all other taxes imposed by law. (d)(1) The Legislature finds that in addition to the
production reports and financial records which must be filed by oil and gas
producers with the State Tax Commissioner in order to comply with this section,
oil and gas producers are required to file other production reports with other
agencies, including, but not limited to, the office of oil and gas, the Public
Service Commission and county assessors. The reports required to be filed are
largely duplicative, the compiling of the information in different formats is
unnecessarily time consuming and costly, and the filing of one report or the
sharing of information by agencies of government would reduce the cost of
compliance for oil and gas producers. (2) On or before July 1, 2003, the Tax Commissioner
shall design a common form that may be used for each of the reports regarding
production that are required to be filed by oil and gas producers, which form
shall readily permit a filing without financial information when such
information is unnecessary. The commissioner shall also design such forms so as
to permit filings in different formats, including, but not limited to,
electronic formats. (3) Effective July 1, 2006, this subsection shall have
no force or effect.;
By striking out the enacting section and inserting in lieu threrof a new enacting section, :
That §11-13A-3a of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §37-7-2 of said code be amended and reenacted; and that said code be amended by adding thereto a new chapter, designated §37B-1-1, §37B-1-2, §37B-1-3, §37B-1-4, §37B-1-5, §37B-1-6, §37B-1-7, §37B-1-8, §37B-1-9 and §37B-1-10, all to read as follows:.