ENGROSSED
H. B. 4589
(By Delegates Frederick, Yeager, Michael,
Kominar, Stalnaker and Evans)
[Introduced February 21, 2000; 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 the minimum
severance tax on coal; and providing that tax is not imposed
on coal mined from thin seams on which the reduced severance
tax rate imposed by subsection (f), section three, article
thirteen-a of chapter eleven is paid.
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 by the taxpayer for sale,
profit or commercial use during such taxable year shall be seventy-
five cents per ton, 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: Provided, however, That for taxable
years ending after the thirty-first day of December, one thousand
nine hundred ninety-nine, the minimum severance tax on coal may not
be imposed on any ton of coal produced on or after the first day of
April, two thousand, on which the severance tax is imposed by the
provisions of subsection (f), section three, article thirteen-a of
this chapter.
(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 the privilege
of producing 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 of this chapter
or, for taxable years ending after the thirty-first day of December, one thousand nine hundred ninety-nine, the severance tax
imposed by the provisions of subsection (f), section three, article
thirteen-a of this chapter on coal produced on or after the first
day of April, two thousand. The amount of credit allowed shall be
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 may not exceed the severance tax liability of the
taxpayer for the taxable year determined under section three of
said that article exclusive of the additional tax on coal imposed
by section six of said that article and, for taxable years ending
after the thirty-first day of December, one thousand nine hundred
ninety-nine, of the severance tax imposed by the provisions of
subsection (f), section three, article thirteen-a of this chapter
on coal produced on or after the first day of April, two thousand,
after application of all credits to which the taxpayer may be
entitled except any credit allowed pursuant to chapter five-e of
this code, any credit for installment payments of estimated tax
paid pursuant to section six of this article during the taxable
year and any credit for overpayment of article thirteen-a tax.
Notwithstanding anything herein to the contrary, in no event shall
may the credit allowed under chapter five-e of this code be allowed
as a credit against the minimum severance tax imposed by this
article.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.