H. B. 2194
(By Mr. Speaker, Mr. Chambers, and Delegate Burk)
[By Request of the Executive]
[Introduced February 19, 1993; referred to the
Committee on Finance.]
A BILL to amend and reenact section three, article twelve-b,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to altering
the minimum severance tax rate on the severance of coal from
fifty cents per ton to a new graduated minimum severance tax
rate of fifty cents per ton for the first one hundred twenty
thousand tons of annual production and one dollar twenty-
five cents per ton for all tonnage over one hundred twenty
thousand tons produced during the taxable year; clarifying
the credit against article thirteen-a tax for minimum
severance tax.
Be it enacted by the Legislature of West Virginia:
That section three, article twelve-b, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
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 fifty 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 the
thirty-first day of May, one thousand nine hundred ninety-three,
the minimum severance tax imposed on coal produced for sale,
profit or commercial use in excess of one hundred twenty thousand
tons for such taxable year shall be one dollar twenty-five cents,
with such rate increase to apply only to tons of coal produced
after the thirty-first day of May, one thousand nine hundred
ninety-three.
(b) Credit against article thirteen-a tax. -- A person who
pays the minimum severance tax imposed by this article shall be
allowed a credit against the severance tax imposed on coal by
section three, article thirteen-a of this chapter, but not
including the additional severance tax on coal imposed by section
six of said article thirteen-a, 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 shall not exceed the
severance tax liability of the taxpayer for the taxable year
determined under paragraph one, subsection (b), section three of
said article thirteen-a exclusive of the additional tax on coalimposed by section six of said article thirteen-a after
application of all credits to which the taxpayer may be entitled
except any credit for installment payments of estimated tax paid
pursuant to section six of this article during the tax year and
any credit for overpayment of article thirteen-a tax.
NOTE: The purpose of this bill is to amend the minimum
severance tax rate on coal to change the rate from an ungraduated
rate of fifty cents per ton of coal produced during the taxable
year to a graduated rate of fifty cents per ton for the first one
hundred twenty thousand tons produced during the taxable year and
one dollar and twenty-five cents per ton of coal beyond one
hundred twenty thousand tons produced during the taxable year.
The amendment provides that the new rate of tax becomes effective
June 1, 1993.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
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