H. B. 4322
(By Delegates Rick Thompson, and Perdue)
[Introduced February 1, 2006; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §11-13V-4 of the Code of West Virginia,
1931, as amended, relating to removing the severance tax for
timber.
Be it enacted by the Legislature of West Virginia:
That §11-13V-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 13V. WORKERS' COMPENSATION DEBT REDUCTION ACT.
§11-13V-4. Imposition of tax.
(a)
Imposition of additional tax on privilege of severing
coal. -- 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 additional annual severance tax for exercising
the privilege after the thirtieth day of November, two thousand
five. The tax shall be fifty-six cents per ton and the measure of the tax is tons of clean coal severed or produced in this state by
the taxpayer after the thirtieth day of November, two thousand
five, for sale, profit or commercial use during the taxable year.
When the person mining the coal sells raw coal, the measure of tax
shall be ton of clean coal determined in accordance with rules
promulgated by the Tax Commissioner as provided in article three,
chapter twenty-nine-a of this code. If this rule is filed for
public comment before the first day of July, two thousand five, the
rule may be promulgated as an emergency legislative rule. This tax
shall be in addition to all taxes imposed with respect to the
severance and production of coal in this state including, but not
limited to, the taxes imposed by articles twelve-d and thirteen-a
of this chapter and the taxes imposed by sections eleven and
thirty-two, article three, chapter twenty-two of this code, if
applicable.
(b)
Imposition of additional tax on privilege of severing
natural gas. -- For the privilege of engaging or continuing within
this state in the business of severing natural gas for sale, profit
or commercial use, there is hereby levied and shall be collected
from every person exercising this privilege an additional annual
privilege tax. The rate of this additional tax shall be four and
seven-tenths cents per mcf of natural gas and the measure of the
tax is natural gas produced after the thirtieth day of November,
two thousand five, determined at the point where the production privilege ends for purposes of the tax imposed by section three-a,
article thirteen-a of this chapter, and with respect to which the
tax imposed by section three-a of said article thirteen-a is paid.
The additional tax imposed by this subsection shall be collected
with respect to natural gas produced after the thirtieth day of
November, two thousand five.
(c) Imposition of additional tax on privilege of severing
timber. -- For the privilege of engaging or continuing within this
state in the business of severing timber for sale, profit or
commercial use, there is hereby levied and shall be collected from
every person exercising this privilege an additional annual
privilege tax equal to two and seventy-eight hundredths percent of
the gross value of the timber produced, determined at the point
where the production privilege ends for purposes of the tax imposed
by section three-b, article thirteen-a of this chapter and upon
which the tax imposed by section three-b of said article thirteen-a
is paid. The additional tax imposed by this subsection shall be
collected with respect to timber produced after the thirtieth day
of November, two thousand five.
(d) (c) No pyramiding of tax burden. -- Each ton of coal and
each mcf of natural gas severed in this state after the effective
date of the taxes imposed by this section shall be included in the
measure of a tax imposed by this section only one time.
(e) (d) Effect on utility rates. -- The public service commission shall, upon the application of any public utility that,
as of the effective date of the taxes imposed by this section, is
not currently making periodic adjustments to its approved rates and
charges to reflect changes in its fuel costs because the mechanism
historically used to make such periodic adjustments is suspended by
an order of the commission, allow such utility to defer, for future
recovery from its customers, any increase in its costs attributable
to the taxes imposed by this section upon: Coal and natural gas
severed in this state and utilized in the production of electricity
generated or produced in this state and sold to customers in this
state; coal and natural gas severed in this state and utilized in
the production of electricity not generated or produced in this
state that is sold to customers in this state; and natural gas
severed in this state that is sold to customers in this state.
(f) (e) Dedication of new taxes. -- The net amount of all
moneys received by the Tax Commissioner from collection of the
taxes imposed by this section, including any interest, additions to
tax, or penalties collected with respect to these taxes pursuant to
article ten, chapter eleven of this code, shall be deposited in the
Workers' Compensation Debt Reduction Fund created in article two-d,
chapter twenty-three of this code. As used in this section, "net
amount of all taxes received by the Tax Commissioner" means the
gross amount received by the Tax Commissioner less the amount of
any refunds paid for overpayment of the taxes imposed by this article, including the amount of any interest on the overpayment
amount due the taxpayer under the provisions of section fourteen,
article ten of this chapter.
(g) (f) Sunset expiration date of taxes. -- The new taxes
imposed by this section shall expire and not be imposed with
respect to privileges exercised on and after the first day of the
month following the month in which the Governor certifies to the
Legislature that: (1) The revenue bonds issued pursuant to article
two-d, chapter twenty-three of this code, have been retired, or
payment of the debt service provided for; and (2) that an
independent certified actuary has determined that the unfunded
liability of the old fund, as defined in chapter twenty-three of
this code, has been paid or provided for in its entirety.
Expiration of the taxes imposed in this section as provided in this
subsection
shall does not relieve any person from payment of any
tax imposed with respect to privileges exercised before the
expiration date.
NOTE: The purpose of this bill is to remove the severance tax
on timber.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.