SENATE
HOUSE
JOINT
BILL STATUS
STATE LAW
REPORTS
EDUCATIONAL
CONTACT
home
home

Introduced Version Senate Bill 458 History

OTHER VERSIONS  -  Committee Substitute (1)  |     |  Email
Key: Green = existing Code. Red = new code to be enacted
SB458 intr
Senate Bill No. 458

(By Senators Helmick, McCabe, Tomblin (Mr. President), Browning, White, Chafin and Stollings)

____________

[Introduced February 3, 2010; referred to the Committee on Energy, Industry and Mining; and then to the Committee on Finance.]

____________




A BILL to amend and reenact §31-15A-16 of the Code of West Virginia, 1931, as amended, relating to dedication of severance tax proceeds; specifying a minimum share of coalbed methane severance tax revenue be distributed to producing counties in an amount at least equal to the share received by nonproducing counties; and specifying computation.

Be it enacted by the Legislature of West Virginia:
That §31-15A-16 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 15A. WEST VIRGINIA INFRASTRUCTURE AND JOBS DEVELOPMENT ACT.
§31-15A-16. Dedication of severance tax proceeds.
(a) There shall be dedicated an annual amount from the collections of the tax collected pursuant to article thirteen-a, chapter eleven of this code for the construction, extension, expansion, rehabilitation, repair and improvement of water supply and sewage treatment systems and for the acquisition, preparation, construction and improvement of sites for economic development in this state as provided in this article.
(b) Notwithstanding any other provision of this code to the contrary, beginning on July 1, 1995, the first $16 million of the tax collected pursuant to article thirteen-a, chapter eleven of this code shall be deposited to the credit of the West Virginia Infrastructure General Obligation Debt Service Fund created pursuant to section three, article fifteen-b of this chapter: Provided, That beginning on July 1, 1998, the first $24 million of the tax annually collected pursuant to article thirteen-a of this code shall be deposited to the credit of the West Virginia Infrastructure General Obligation Debt Service Fund created pursuant to section three, article fifteen-b of this chapter.
(c) Notwithstanding any provision of subsection (b) of this section to the contrary: (1) None of the collections from the tax imposed pursuant to section six, article thirteen-a, chapter eleven of this code shall be so dedicated or deposited; and (2) the portion of the tax imposed by article thirteen-a, chapter eleven and dedicated for purposes of Medicaid and the Division of Forestry pursuant to section twenty-a of said article thirteen-a shall remain dedicated for the purposes set forth in said section twenty-a.
(d) On or before May 1 of each year, commencing May 1, 1995, the council, by resolution, shall certify to the
T reasurer and the Water Development Authority the principal and interest coverage ratio and amount for the following fiscal year on any infrastructure general obligation bonds issued pursuant to the provisions of article fifteen-b of this chapter.
(e) Notwithstanding any provision of this article to the contrary, the tax on coalbed methane remitted by the Tax Commissioner for deposit in the West Virginia Infrastructure Fund pursuant to section twenty-a, article thirteen-a, chapter eleven of this code shall be distributed as follows: For all distributions made on or after January 1, 2010, a provisional computation shall be made whereby:
(1) Seventy-five percent of the moneys so deposited shall be distributed provisionally allocated for distribution for infrastructure projects in the various counties of this state in which the coalbed methane was produced; and
(2) The remaining twenty-five percent of the moneys so deposited shall be distributed provisionally allocated for distribution equally to the various counties of this state in which no coalbed methane was produced for infrastructure projects. Moneys shall be distributed provisionally allocated for distribution to each coalbed methane producing county in direct proportion to the amount of tax revenues derived from coalbed methane production in paid by the county using information provided by the Tax Commissioner as required in section twenty-a, article thirteen-a, chapter eleven of this code.
(3) Portional
a djustments and distribution of moneys.
(A) If, for any year, a coalbed methane producing county's share of money provisionally allocated for distribution to that county, based on the proportion of tax revenues derived from coalbed methane production in the county, is computed to be an amount that is less than the amount provisionally allocated for distribution to each of the coalbed methane nonproducing counties, then for purposes of the computations set forth in this subsection, that coalbed methane producing county shall be redesignated a coalbed methane nonproducing county. The money that has been provisionally allocated for distribution to that coalbed methane producing county out of the seventy-five percent portion specified in subdivision (1) of this section shall be subtracted out of the seventy-five percent portion specified in subdivision (1) and added to the twenty-five percent portion specified in subdivision (2).
(B) When the adjustment specified in paragraph (A) of this subdivision (3) has been made for each coalbed methane producing county that has been redesignated as a coalbed methane nonproducing county, then the amount remaining in the provisional seventy-five percent portion specified in subdivision (1), as adjusted in accordance with paragraph (A) of this subdivision (3), shall be distributed to the coalbed methane producing counties that have not been redesignated as coalbed methane nonproducing counties under this subdivision (3), in direct proportion to the amount of tax revenues derived from coalbed methane production in each such county not redesignated as a coalbed methane nonproducing county bears to the total amount of tax revenues derived from coalbed methane production in all coalbed methane producing counties that have not been redesignated as a coalbed methane nonproducing county, using information provided by the Tax Commissioner as required in section twenty-a, article thirteen-a chapter eleven of this code.
(C) The amount in the twenty-five percent portion specified in subdivision (2), as adjusted in accordance with paragraph (A) of this subdivision (3), shall be distributed equally to the coalbed methane nonproducing counties, which shall include those coalbed methane producing counties redesignated as coalbed methane nonproducing counties in accordance with paragraph (A) of this subdivision (3). In no case shall the total amount distributed in any fiscal year to the aggregate of all coalbed methane producing counties and all coalbed methane nonproducing counties exceed the amount of tax on coalbed methane remitted by the Tax Commissioner for deposit in the West Virginia Infrastructure Fund pursuant to section twenty-a, article thirteen-a, chapter eleven of this code for the year.


NOTE: The purpose of this bill is to cause a minimum share of severance tax to be distributed to coalbed methane producing counties by requiring that less productive coalbed methane producing counties have a share at least equal to nonproducing counties.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Web Administrator   |   © 2021 West Virginia Legislature ****


X

Print On Demand

Name:
Email:
Phone:

Print