H. B. 2191
(By Delegates Martin, Williams, Douglas, Mezzatesta,
Michael and Willison)
[Introduced February 21, 1997; referred to the
Committee on Finance.]
A BILL to amend article thirteen-a, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
sixteen-a, relating to requiring every nonresident person or
company entering into a contract to sever West Virginia
timber to post a bond to secure payment of severance tax.
Be it enacted by the Legislature of West Virginia:
That article thirteen-a, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
sixteen-a, to read as follows:
ARTICLE 13A. SEVERANCE TAXES.
§11-13A-16a. Nonresident entity entering into contracts to sever West Virginia timber--registration, bond,
etc.
(a) Every nonresident person or company entering into a
contract with any person or company within or without this state
to sever West Virginia timber shall register with the tax
commissioner prior to engaging in the performance of a contract
in this state.
(b) (1) At the time of registration, the nonresident person
or company entering into the contract shall deposit with the tax
commissioner four percent of the estimated gross value of the
timber to be produced which shall be held within a Forestry Tax
Fund pending the completion of the contract, the determination of
the taxes due this state under this article and the payment of
the tax by the person or company having the economic interest in
the timber at the time it is severed.
(2) In lieu of the deposit, the contractor may provide a
corporate surety bond to be approved by the tax commissioner as
to form, sufficiency, value, amount, stability, and other
features necessary to provide a guarantee of payment of the
compensating tax due this state.
NOTE: The purpose of this bill is to require out-of-state
persons or companies entering into contracts to sever West
Virginia timber to post a bond to secure payment of West Virginia severance tax.
This section is new; therefore, strike-throughs and
underscoring have been omitted.
This bill is recommended for passage during the 1997 Regular
Legislative session by the Forest Management Review Commission.