WEST virginia legislature

2022 regular session

Committee Substitute

for

Senate Bill 476

By Senator Tarr

[Originating in the Committee on Energy, Industry, and Mining; reported on February 09, 2022]

A BILL to amend and reenact §11-12B-3 of the Code of West Virginia, 1931, as amended, relating to the imposition of the minimum severance tax on coal; and making technical corrections to the code.

Be it enacted by the Legislature of West Virginia:

ARTICLE 12B. MINIMUM SEVERANCE TAX ON COAL.

§11-12B-3. Imposition of tax, credit.

(a) Imposition of tax. – Upon every person exercising the privilege of engaging within this state in severing, extracting, reducing to possession, or producing coal for sale, profit, or commercial use, there is hereby imposed an annual minimum severance tax equal to 50¢ cents per ton of coal produced by the taxpayer for sale, profit or commercial use during the taxable year: Provided, That for taxable years ending after May 31, 1993, the minimum severance tax imposed on coal produced by the taxpayer for sale, profit, or commercial use during such taxable year shall be 75¢ cents per ton, with such rate increase to apply only to tons of coal produced after May 31, 1993: Provided, however, That for taxable years ending after December 31, 1999, the minimum severance tax on coal may not be imposed on any ton of coal mined by underground methods from seams with an average thickness of 45 inches or less produced on or after April 1, 2000, on which the severance tax is imposed by the provisions of subsection (f), section three, article thirteen-a of this chapter §11-13A-3 of this code.

(b) Credit against article thirteen-a tax the severance tax imposed under §11-13A-1 et seq. of this code – A person who pays the minimum severance tax imposed by this article shall be allowed a credit against the severance tax imposed on the privilege of producing coal by section three, article thirteen-a of this chapter §11-13A-3 of this code, but not including the additional severance tax on coal imposed by section six of article thirteen-a of this chapter §11-13A-6 of this code or, for taxable years ending after December 31, 1999, the severance tax imposed by the provisions of subsection (f), section three, article thirteen-a of this chapter §11-13A-3 of this code on coal mined by underground methods from seams with an average thickness of 45 inches or less produced on or after April 1, 2000. The amount of credit allowed shall be equal to the liability of the taxpayer for the taxable year for payment of the minimum severance tax on coal imposed by this article: Provided, That the amount of credit allowed by this section may not exceed the severance tax liability of the taxpayer for the taxable year determined under section three of that article §11-13A-3 of this code exclusive of the additional tax on coal imposed by section six of that article §11-13A-6 of this code and, for taxable years ending after December 31, 1999, of the severance tax imposed by the provisions of subsection (f), section three, article thirteen-a of this chapter §11-13A-3 of this code on coal mined by underground methods from seams with an average thickness of 45 inches or less produced on or after April 1, 2000, after application of all credits to which the taxpayer may be entitled except any credit allowed pursuant to chapter five-e §5E-1-1 et seq. of this code, any credit for installment payments of estimated tax paid pursuant to section six of this article §11-12B-6 of this code during the taxable year, and any credit for overpayment of article thirteen-a tax the severance tax imposed under §11-13A-1 et seq.  Notwithstanding anything herein to the contrary, in no event may the credit allowed under chapter five-e of this code §5E-1-1 et seq. of this code be allowed as a credit against the minimum severance tax imposed by this article.

NOTE: The purpose of this bill is correct cross references that exempt thin seam coal from the minimum severance tax.

Strike-throughs indicate language that would be stricken from a heading or the present law. and underscoring indicates new language that would be added.