WEST virginia legislature
2017 regular session
Senate Bill 375
By Senators Boso and Smith
[Originating in the Committee on Natural Resources; reported on March 25, 2017]
A BILL to amend and reenact §11-13A-3 of the Code of West Virginia, 1931, as amended, relating to severance tax on certain natural resources; defining “mined aggregates”; changing the severance tax on mined aggregates after certain date; and making technical corrections.
Be it enacted by the Legislature of West Virginia:
That §11-13A-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
§11-13A-3. Imposition of tax on privilege of severing
, limestone or sandstone, or furnishing certain health care services,
effective dates therefor and mined aggregates; reduction of
severance rate for coal mined by underground methods based on seam thickness.
(a) Imposition of tax. — Upon every person exercising the privilege of engaging or continuing within this state in the business of severing, extracting, reducing to possession and producing for sale, profit or commercial use coal, limestone or sandstone, or in the business of furnishing certain health care services, there is hereby levied and shall be collected from every person exercising such privilege an annual privilege tax.
(b) Rate and measure of tax. —
to the provisions of subsection (g) of this section, the Coal. — The
tax imposed in subsection (a) of this section shall be five percent of the
gross value of the natural resource produced or the health care service
provided coal produced, as shown by the gross income derived from
the sale or furnishing thereof by the producer or the provider of the health
care service, except as otherwise provided in this article. In the case
of coal, this five percent The rate of tax includes the thirty-five
one hundredths of one percent additional severance tax on coal imposed by the
state for the benefit of counties and municipalities as provided in section six
of this article.
(2) Mined aggregates. — For tax years beginning after December 31, 2016, the severance tax for mined aggregates is 10 cents per ton of product sold by the producer of the natural resource material. For the purposes of this section, “mined aggregates” include limestone, sandstone, sand, crushed stone, gravel, shale, dolomite and granite that has been physically severed from the earth by a natural resources producer.
(c) “Certain health care services” defined. — For purposes of this section, the term “certain health care services” means, and is limited to, behavioral health services.
(d) Tax in addition to other taxes. — The tax imposed by this section shall apply to all persons severing or processing, or both severing and processing, in this state natural resources enumerated in subsection (a) of this section and to all persons providing certain health care services in this state as enumerated in subsection (c) of this section and shall be in addition to all other taxes imposed by law.
(e) Effective date. — This section, as amended in 1993, shall apply to gross proceeds derived after May 31, 1993. The language of this section, as in effect on January 1, 1993, shall apply to gross proceeds derived prior to June 1, 1993, and, with respect to such gross proceeds, shall be fully and completely preserved.
(f) Reduction of severance tax rate. — For tax years beginning after the effective date of this subsection, any person exercising the privilege of engaging within this state in the business of severing coal for the purposes provided in subsection (a) of this section shall be allowed a reduced rate of tax on coal mined by underground methods in accordance with the following:
(1) For coal mined by underground methods from seams with an average thickness of thirty-seven inches to forty-five inches, the tax imposed in subsection (a) of this section shall be two percent of the gross value of the coal produced. For coal mined by underground methods from seams with an average thickness of less than thirty-seven inches, the tax imposed in subsection (a) of this section shall be one percent of the gross value of the coal produced. Gross value is determined from the sale of the mined coal by the producer. This rate of tax includes the thirty-five one hundredths of one percent additional severance tax imposed by the state for the benefit of counties and municipalities as provided in section six of this article.
(2) This reduced rate of tax applies to any new underground mine producing coal after the effective date of this subsection, from seams of less than forty-five inches in average thickness or any existing mine that has not produced coal from seams forty-five inches or less in thickness in the one hundred eighty days immediately preceding the effective date of this subsection.
(3) The seam thickness shall be based on the weighted average isopach mapping of actual coal thickness by mine as certified by a professional engineer.
(g)(1) Termination and expiration of the behavioral health severance and business privilege tax. — The tax imposed upon providers of health care services under the provisions of this article shall expire, terminate and cease to be imposed with respect to privileges exercised on or after July 1, 2016. Expiration of the tax as provided in this subsection shall not relieve any person from payment of any tax imposed with respect to privileges exercised before the expiration date.
(2) Refunds made. — The Tax Commissioner will issue a requisition on the Treasury for any amount finally, administratively or judicially determined to be an overpayment of the tax terminated under this subsection. The Auditor shall issue a warrant on the Treasurer for any refund requisitioned under this subsection payable to the taxpayer entitled to the refund, and the Treasurer shall pay the warrant out of the fund into which the amount refunded was originally paid.
NOTE: The purpose of this bill is to change the severance tax on limestone, sandstone and other mined stone products from a percentage of the sales price to a flat rate.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.