HOUSE CONCURRENT RESOLUTION NO. 96
(By Delegates Michael, Border, Browning, Stalnaker, Evans,
Ashley, Susman, Williams, Wakim, Proudfoot, Cann, Leach,
Carmichael, Boggs, R. M. Thompson, Varner, Frederick, Hall, H.
White, Kominar, Houston, G. White and Palumbo)
Requesting the Joint Committee on Government and Finance to study
the actions that may be undertaken to ensure the
competitiveness of West Virginia's coal industry and sustained
production in excess of one hundred forty-four million tons
each year.
Whereas, Coal is an integral component of West Virginia's
history, society and economy; and
Whereas, The West Virginia coal industry directly employees
over forty thousand individuals at an average annual wage in excess
of fifty three thousand dollars per year and provides benefits to
them and their families; and
Whereas, West Virginia's citizens and those of other states and
nations rely daily on West Virginia coal for energy and metallurgy
in their productive and private lives; and
Whereas, West Virginia's coal industry underwrites much of the State budget through severance, additional severance,
transportation, business franchise, corporate net income and other
taxes within excess of two hundred sixty-five million in severance
taxes alone flowing to the State General Revenue Fund; and
Whereas, West Virginia's coal industry also underwrites much of
the budgets of each of the State's political subdivisions with more
than eighteen million dollars each year flowing to counties and
municipalities; and
Whereas, West Virginia has nearly fifty-three billion tons of
recoverable coal reserves, enough for more than three hundred fifty
years of production at current production levels; and
Whereas, West Virginia coal and coal miners are the world's
finest and the State possesses clear competitive and natural
advantages in coal production in the world market place; and
Whereas, Scarcity of petroleum, natural gas and other fossil
fuels and energy sources and fine metallurgical coal itself and
advances in clean coal technologies bode well for sustaining or
increasing the coal demand and price levels in future years; and
Whereas, The development of reserves in the Western United
States and other nations, tax disadvantages, permitting costs and
difficulties, reclamation costs and the increasing difficulty and
cost of accessing the State's remaining coal reserves represent
serious threats to the long-term viability of West Virginia's coal
industry; and
Whereas, In January, 2005, the State's coal industry was
confronted with the largest tax increase ever levied against any
industry in the State's history; and
Whereas, The new fifty-six cents per ton additional severance
tax was based on sustained production of one hundred forty-four
million tons of annual production in order to pay a designated
portion of the Workers' Compensation Fund debt each year; and
Whereas, Every business and industry in the State will enjoy
economic relief in the form of reduced Workers' Compensation
premiums, the coal industry was the only industry asked to pay a
new tax without any reduction in other taxes; and
Whereas, The new fifty-six cents per ton additional severance
tax when combined with the other taxes paid by the State's coal
industry cause the West Virginia coal industry to be the highest
taxed industry in the State; and
Whereas, The West Virginia coal industry has the highest tax
burden of any coal producing state in the Eastern or Midwestern
United States; and
Whereas, It is more expensive and time consuming to permit a
new mine or an expansion in West Virginia than it is in any
surrounding coal producing state; and
Whereas, If West Virginia producers cannot competitively sell
their coal in today's aggressive domestic and world coal markets,
it will not be mined in West Virginia; and
Whereas, Actions must be taken to encourage investment in the
West Virginia coal industry as soon as possible so as to take
advantage of the strong worldwide energy market, and to prepare the
industry for sustained production through the next two decades;
therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby
requested to study what urgent and immediate actions may be
undertaken to ensure the competitiveness of West Virginia's coal
industry and sustained production in excess of one hundred
forty-four million tons each year; and, be it
Further Resolved, That the Joint Committee on Government and
Finance report to the regular session of the Legislature, two
thousand six, on its finding, conclusions and recommendations
together with drafts of any legislation to effectuate its
recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this
study, to prepare a report and to draft necessary legislation be
paid from legislative appropriations to the Joint Committee on
Government and Finance.
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