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 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 or 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. 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 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.

FINANCE COMMITTEE AMENDMENT


On page two, section three, line fourteen, following the words "of coal", by inserting the words "produced on or after the first day of April, two thousand", followed by a comma.

On page two, section three, line twenty-two, following the word "thirteen-a", striking out the word "or" and inserting in lieu thereof the words "of this chapter or", followed by a comma.

On page two, section three, line twenty-four, following the words "ninety-nine" and the comma, by striking out the word "of".

On page three, section three, line two, following the words "this chapter", by striking out the period and inserting the words "on coal produced on or after the first day of April, two thousand", followed by a period.

On page three, section three, line nine, following the words "article and", by inserting a comma.

And,

On page three, section three, line twelve, following the words "this chapter", by inserting the words "on coal produced on or after the first day of April, two thousand", followed by a comma.