Senate Bill No. 546
(By Senators Ross, Fanning and Chafin)
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[Introduced February 18, 2000; referred to the Committee
on Finance.]
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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 said chapter 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 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.
NOTE: The purpose of this bill is to provide that the minimum
severance tax on coal is not imposed on coal mined from thin seams
on which the reduced severance tax rate imposed by §11-13A-3(f) is
paid.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.