Senate Bill No. 592
(By Senator Kessler)
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[Introduced March 16, 2009; referred to the Committee on Health
and Human Resources; and then to the Committee on Finance.]
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A BILL to amend and reenact §11-13A-3 of the Code of West Virginia,
1931, as amended; and to amend and reenact §11-27-36 of said
code, all relating to health care provider tax generally;
providing a tax of five percent of the gross receipts of the
taxpayer until July 1, 2010; and allowing certain providers to
reduce gross receipts by contractual allowances.
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; and that §11-27-36 of said code be
amended and reenacted, all to read as follows:
ARTICLE 13A. SEVERANCE TAXES.
§11-13A-3. Imposition of tax or privilege of severing coal,
limestone or sandstone, or furnishing certain
health care services, effective dates therefor;
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. -- (1) 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, 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 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) The tax imposed by subsection (a) of this section shall be
five percent of the gross value of the health care services
provided by the provider of the health care service. The tax rate
shall be eliminated on the effective date set forth in subsection
(j), section thirty-six, article twenty-seven, chapter eleven of
this code.
(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 the year
1993, shall apply to gross proceeds derived after May 31 of such
year. The language of this section, as in effect on January 1 of
such year, shall apply to gross proceeds derived prior to June 1 of
such year 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:
(i) 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.
(ii) 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.
(iii) The seam thickness shall be based on the weighted
average isopach mapping of actual coal thickness by mine as
certified by a professional engineer.
ARTICLE 27. HEALTH CARE PROVIDER TAXES.
§11-27-36. Phase out and elimination of tax on services of
individual practitioners.
(a) Effective July 1, 2001, the rate of the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one and five
hundred seventy-five thousandths percent; and
(2) Section sixteen of this article is reduced to one and
eight-tenths percent; and
(3) Section seven of this article is reduced to four and
ninety-five one hundredths percent.
(b) Effective July 1, 2002, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen,
eighteen and nineteen of this article is reduced to one and
four-tenths percent; and
(2) Section sixteen of this article is reduced to one and
six-tenths percent; and
(3) Section seven of this article is reduced to four and
four-tenths percent.
(c) Effective July 1, 2003, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen,
eighteen and nineteen of this article is reduced to one and two
hundred twenty-five thousandths percent; and
(2) Section sixteen of this article is reduced to one and
four-tenths percent; and
(3) Section seven of this article is reduced to three and
eighty-five hundredths percent.
(d) Effective July 1, 2004, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to one and
five-hundredths percent; and
(2) Section sixteen of this article is reduced to one and two
tenths percent; and
(3) Section seven of this article is reduced to three and
three-tenths percent.
(e) Effective July 1, 2005, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen,
eighteen and nineteen of this article is reduced to eight hundred
seventy-five thousandths percent; and
(2) Section sixteen of this article is reduced to one percent;
and
(3) Section seven of this article is reduced to two and
seventy-five hundredths percent.
(f) Effective July 1, 2006, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen,
eighteen and nineteen of this article is reduced to seven-tenths
percent; and
(2) Section sixteen of this article is reduced to eight-tenths
percent; and
(3) Section seven of this article is reduced to two and
two-tenths percent.
(g) Effective July 1, 2007, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen, eighteen and nineteen of this article is reduced to five hundred
twenty-five thousandths percent; and
(2) Section sixteen of this article is reduced to six-tenths
percent; and
(3) Section seven of this article is reduced to one and
sixty-five hundredths percent.
(h) Effective July 1, 2008, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen,
eighteen and nineteen of this article is reduced to thirty-five
hundredths percent; and
(2) Section sixteen of this article is reduced to four-tenths
percent; and
(3) Section seven of this article is reduced to one and
one-tenth percent.
(i) Effective July 1, 2009, the tax imposed under:
(1) Sections five, six, twelve, thirteen, fourteen, seventeen,
eighteen and nineteen of this article is reduced to one hundred
seventy-five thousandths percent; and
(2) Section sixteen of this article is reduced to two-tenths
percent; and
(3) Section seven of this article is reduced to fifty-five
hundredths percent.
(j) Effective July 1, 2010, the tax imposed under sections
five, six, seven, twelve, thirteen, fourteen, sixteen, seventeen, eighteen, and nineteen of this article, and subdivision (2),
subsection (a), section three, article thirteen-a, chapter eleven
is eliminated.
NOTE: The purpose of this bill is to provide a tax of five
percent of the gross receipts of a behavioral health service
provider until July 1, 2010; and to allow certain providers to
reduce gross receipts by contractual allowances.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.