ENROLLED
H. B. 4589
(By Delegates Frederick, Yeager, Michael,
Kominar, Stalnaker and Evans)
[Passed March 11, 2000; in effect April 1, 2000.]
AN ACT 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 the minimum
severance tax is not imposed on coal mined from thin seams on
which the reduced severance tax rate is imposed.
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 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 may not
exceed the severance tax liability of the taxpayer for the taxable
year determined under section three of that article exclusive of
the additional tax on coal imposed by section six of 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 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.