Senate Bill No. 5006
(By Senators Tomblin, Mr. President, and Sprouse, By Request of
the Executive)
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[Introduced September 10, 2001; referred to the Committee on
Finance.]
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A BILL to amend and reenact section two-f, article thirteen,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend and reenact
section three-e, article thirteen-a of said chapter, all
relating to privilege taxes imposed on production of coal from
waste and residue of prior mining activity and coal-based
synthetic fuel; making technical corrections in act passed the
thirteenth day of April, two thousand one, and providing for
certain changes to be retroactive; imposing annual privilege
tax on activity of manufacturing synthetic fuel from coal and
expiring tax as of specified date; creating funds for deposit
of taxes collected; dedicating portion of tax collected for
deposit in mining and reclamation operations fund, the synthetic fuel producing counties grant fund and the synthetic
fuels nonproducing counties fund, with any additional
collections to be deposited in general revenue fund; creating
synthetic fuel producing counties grant program; providing
method for distributing certain synthetic fuel tax collections
to counties in which synthetic fuel manufacturing facilities
are located and requiring county commissions to use
distributions for economic development and infrastructure
improvements; setting forth definitions; providing for
distribution of certain synthetic fuel tax collections to
counties other than counties in which synthetic fuel
manufacturing facilities are located and requiring these
county commissions to use distributions for payment of
regional jail and correctional authority and county jail
expenses and then for any lawful purpose; providing for
development office to administer synthetic fuel producing
counties grant program and specifying authority of director;
providing methodology for distribution of moneys or
encumbrance of funds out of synthetic fuel producing counties
grant fund; authorizing promulgation of emergency regulations
by tax commissioner; authorizing promulgation of emergency
rules and legislative, interpretive and procedural rules by director of development office; dedicating and providing for
distribution of sixty thousand dollars per fiscal year to
development office for administration of synthetic fuel
producing counties grant program; specifying requirements and
criteria for reallocation and repooling of funds in synthetic
fuel producing counties grant fund; specifying treatment of
encumbered funds in synthetic fuel producing counties grant
fund; clarifying imposition of privilege tax on activity of
extracting and processing material from waste and residue of
prior coal mining activity to produce coal for sale, profit or
commercial use; exempting producers who are electrical
cogeneration plants from the tax; providing that waste coal
tax is in lieu of annual privilege tax imposed on severance of
coal under section three of the severance and business
privilege tax act, the additional tax on severance, extraction
and production of coal imposed by section six of said act and
the minimum severance tax imposed by section three of the
minimum severance tax act; dedicating waste coal tax
collections to waste coal producing counties for use in
economic development and infrastructure improvements;
providing for distribution of net tax collected to waste coal
producing counties by state treasurer by separate check based on production tonnage in county for the preceding year; and
requiring office of chief inspector to annually determine that
county commission expenditures of moneys distributed from
synthetic fuel producing counties grant fund, synthetic fuel
nonproducing counties fund and waste coal producing counties
fund are in compliance with requirements specified by
Legislature in general law.
Be it enacted by the Legislature of West Virginia:
That section two-f, article thirteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; and that section three-e,
article thirteen-a of said chapter be amended and reenacted, all to
read as follows:
ARTICLE 13. BUSINESS AND OCCUPATION TAX.
§11-13-2f. Manufacturing or producing synthetic fuel from coal;
rate and measure of tax; definitions; dedication,
deposit and distribution of tax; expenditure of
distributions received by synthetic fuel producing
counties for economic development and infrastructure
improvement pursuant to plan approved by West
Virginia development office; priority for
expenditure of distributions received by other
county commissions; date for expiration of tax.
(a) Rate and measure of tax. -- Upon There is hereby imposed
an annual tax, in accordance with section two of this article, upon
every person engaging or continuing within this state in the
business of manufacturing or producing synthetic fuel from coal for
sale, profit or commercial use, either directly or through the
activity of others, in whole or in part, the amount of the tax
shall be equal to fifty cents per ton of synthetic fuel
manufactured or produced for sale, profit or commercial use during
the taxable year. When a fraction of a ton is included in the
measure of tax, the rate of tax as to that fraction of a ton shall
be proportional. The measure of tax is the total number of tons of
synthetic fuel product manufactured or produced in this state
during the taxable year for sale, profit or commercial use,
regardless of the place of sale or the fact that deliveries may be
made to points outside this state. Liability for payment of this
tax shall accrue when the synthetic fuel product is sold by the
manufacturer or producer, determined by when the producer or
manufacturer recognizes gross receipts for federal income tax
purposes. When there is no sale of the synthetic fuel product,
liability for tax shall accrue when the synthetic fuel product is
shipped from the manufacturing facility for commercial use, whether
by the taxpayer or by a related party, except as otherwise provided in legislative rules promulgated by the tax commissioner as
provided in article three, chapter twenty-nine-a of this code.
(b) Definitions. -- For purposes of this section:
(1) "Fiscal year" means the fiscal year of this state.
(1) (2) "Fuel" means material that produces usable heat or
power upon combustion.
(2) (3) "Fuel manufactured or produced from coal" means
liquid, gaseous or solid fuels produced from coal, including, but
not limited to, such fuels when used as feedstocks.
(4) "Office of chief inspector" means the state auditor as ex
officio chief inspector and supervisor of local government offices
in accordance with section eleven, article nine, chapter six of
this code.
(5) "Provisional Share" means the portion of the synthetic
fuel producing counties grant fund that is available for possible
distribution to each synthetic fuel producing county. The amount
of each county's provisional share is derived by dividing the share
computation base by the number of synthetic fuel producing counties
in this state during the fiscal year. The share computation base
is the sum of: (A) Net revenues deposited in the synthetic fuel
producing counties grant fund for the fiscal year, and (B) any
amounts repooled for the fiscal year into the synthetic fuel producing counties grant fund under this section, less (C) the
amount dedicated and allotted to the director of the development
office under this section for administration of the synthetic fuel
producing counties grant program. A county shall be counted as a
synthetic fuel producing county only if a synthetic fuel
manufacturing plant operated in the county for at least one hundred
eighty days during the fiscal year.
(3) (6) "Synthetic fuel manufactured or produced from coal" or
"synthetic fuel" means and includes, but is not limited to, any
fuel that is made or formed into a briquette, fragment, sheet,
flake or other solid form by combining a binder or binding
substance with coal dust, coal fines, crushed coal, pulverized
coal, stoker fines, waste coal, coal or material derived from
slurry ponds, coal or material derived from gob piles or any
combination of the aforementioned materials, without regard to
whether any federal tax credit is, or would have been, available
for or with relation to the production of such fuel. The term
"synthetic fuel manufactured or produced from coal" or "synthetic
fuel" also means, but is not limited to, fuel manufactured or
produced from coal for which credit is allowable for federal income
tax purposes under section twenty-nine of the United States
Internal Revenue Code, as in effect on the effective date of this section the first day of January, two thousand one, or for which
credit would have been allowable if the synthetic fuel was produced
from a facility, or expansion of a facility, that meets the
requirement of section twenty-nine of the Internal Revenue Code or
would have met the requirements on the effective date of this
section first day of January, two thousand one, notwithstanding
that such facility or expansion of a facility may have been placed
in service either prior to or subsequent to the first day of
January, two thousand one. "Synthetic fuel" does not include coke
or coke gas.
(7) "Synthetic fuel producing county" means a county of this
state in which a synthetic fuel manufacturing plant is physically
located, that actively produces synthetic fuel for at least one
hundred eighty days during the fiscal year. For purposes of
determining whether a county is a synthetic fuel producing county,
the location of the synthetic fuel manufacturing company
headquarters, the state of incorporation or organization of the
company or the location of any managerial office or facility or
other office or facility of the company, other than the synthetic
fuel manufacturing plant, and the physical location where the coal
or other material used in synthetic fuel manufacturing is extracted
from the earth, shall not be determinative of the designation of a county as a synthetic fuel producing county.
(8) "Synthetic fuel nonproducing county" means any county of
this state other than a synthetic fuel producing county.
(4) (9) "Ton" means two thousand pounds.
(10) "Director of the development office" or "director" means
the director of the West Virginia development office created and
continued under article two, chapter five-b of this code.
(c) Credits not allowed against tax. -- When determining the
amount of tax due under this section, no credit shall be allowed
under section three-c or three-d of this article or under any other
article of this chapter or chapter of this code unless it is
expressly provided that the credit applies to the business and
occupation tax on the privilege of manufacturing or producing
synthetic fuel.
(d) Emergency rule authorized. -- The tax commissioner may, in
the commissioner's discretion, promulgate an emergency rule, as
provided in article three, chapter twenty-nine-a of this code, that
clarifies, explains or implements the provisions of this section.
(e) Dedication and distribution of proceeds, creation of
funds. --
(1) The first four million dollars of the net amount of tax
collected during each fiscal year for exercise of the privilege taxed under this section shall be deposited into the "Mining and
Reclamation Operations Fund" created in the state treasury by
section thirty-two, article three, chapter twenty-two of this code.
Provided, That
(2) There is hereby created a fund in the state treasury
entitled "the synthetic fuel producing counties grant fund," which
shall be a revolving fund that shall carry over each fiscal year.
The net amount of tax collected for exercise of the privilege taxed
under this section in excess of the first four million dollars
during each fiscal year, not to exceed two million sixty thousand
dollars, shall be deposited in the synthetic fuel producing
counties grant fund. Moneys in the synthetic fuel producing
counties grant fund, net of moneys allocated to the director of the
development office, shall be dedicated to the counties in which the
synthetic fuel plants are domiciled and are producing as of the
first day of April, two thousand one: Provided, however, That the
and distributed among the synthetic fuel producing counties under
the synthetic fuel producing counties grant program as provided in
this section. The county commission of a synthetic fuel producing
county shall use ninety percent of the funds distributed to the
county out of the synthetic fuel producing counties grant fund for
use in infrastructure improvement and ten percent of the funds distributed to the county out of the synthetic fuel producing
counties grant fund for economic development. Provided further,
That the
(3) There is hereby created in the state treasury a fund
entitled "the synthetic fuel nonproducing counties fund," which
shall be a revolving fund that shall carry over each fiscal year.
The net amount of tax collected for exercise of the privilege taxed
under this section in excess of the first six million sixty
thousand dollars during each fiscal year, not to exceed two million
dollars, shall be deposited in the synthetic fuel nonproducing
counties fund and equally divided and distributed among the
remaining counties having no synthetic fuel plants domiciled and
producing within their borders as of the first day of April, two
thousand one: And provided further, That the synthetic fuel
nonproducing counties. The county commission of a synthetic fuel
nonproducing county shall first use such moneys for regional jail
and correctional authority and county jail expenses, with and shall
use any remainder being subject to county discretion: for such
lawful public purposes as the county commission may prescribe. And
provided further, That
(4) The net amount of the tax collected in excess of eight
million sixty thousand dollars during each fiscal year shall be dedicated to the general revenue fund. And provided further, That
funding provided by taxes pursuant to this section and section
three-e, article thirteen-a of this chapter shall be administered
by the office of community development
(5) The office of chief inspector shall annually determine
that a county's expenditures of moneys distributed under this
section is in compliance with the requirements of this section.
(6) For purposes of this subsection (e), "net amount of tax
collected" means the gross amount of tax collected under this
section less allowed refunds and credits.
(f) Administration of the synthetic fuel producing counties
grant program. --
(1) The director of the development office is hereby
authorized and empowered to administer the distribution of moneys
in the synthetic fuel producing counties grant fund.
(A) On or before the plan submission due date prescribed by
the director of the development office, the county commission of
each synthetic fuel producing county may annually, or with such
frequency as may be prescribed by the director of the development
office, submit a plan to the director of the development office for
use of the county's provisional share of the synthetic fuel
producing counties grant fund.
(B) A grant of moneys out of the synthetic fuel producing
counties grant fund shall only be distributed to a synthetic fuel
producing county or encumbered for the use of a synthetic fuel
producing county after approval by the director of the development
office of the plan for use of the county's provisional share of the
fund, submitted to the director of the development office by the
county commission. The director of the development office shall
approve the synthetic fuel producing county's plan for use if the
plan for use reasonably conforms to the requirements of this
section and the rules promulgated with relation thereto.
(C) If the county's plan is approved, the director of the
development office may authorize a grant of money out of the
synthetic fuel producing counties grant fund to the county, to be
used by the county as specified in the approved plan for use.
(D) The director of the development office may authorize
distribution of any amount encumbered for the use of the county and
carried over from a prior period, in accordance with applicable
plans for use previously approved.
(E) The director of the development office may authorize
encumbrances for any synthetic fuel producing county of moneys in
the synthetic fuel producing counties grant fund, up to the amount
of the county's provisional share for the fiscal year, for one or more qualified uses specified in the county's plan for use, if the
county's approved plan for use of the moneys sets forth a qualified
use for the county's provisional share over a period of several
fiscal years or a qualified use of the moneys calling for
accumulation and distribution to the county in one or more
subsequent fiscal years. Encumbered funds may carry over to
succeeding fiscal years, and may be used to accumulate reserves
over a period of time for use by the county.
(F) In no case may an amount distributed to a synthetic fuel
producing county exceed the amount of a county's provisional share
for the fiscal year plus the amount of moneys encumbered in the
fund for the use of the particular county and carried over from a
prior period.
(2) The director of the development office may approve
distributions of a county's provisional share of the synthetic fuel
producing counties grant fund for use as the county's share for
state or federal matching funds programs, so long as, in the
aggregate, ninety percent of the funds distributed to the county
out of the synthetic fuel producing counties grant fund are used
for infrastructure improvement and ten percent of the funds
distributed to the county out of the synthetic fuel producing
counties grant fund are used for economic development: Provided, That no county may use any amount distributed out of the synthetic
fuel producing counties grant fund as money to be matched under the
funds matching program authorized by subsection (b), section three,
article two, chapter five-b of this code.
(3) Repooling. -- (A) Any synthetic fuel producing county that
has failed to have its plan, or amended and resubmitted plan or
plans, approved by the director of the development office for a
period of eighteen months immediately subsequent to the initial
plan submission date, shall lose its entitlement to the provisional
share of revenues deposited in the fund and attributable to the
fiscal year to which that plan relates, and the provisional share
that would have been attributable to that county for that fiscal
year shall be pooled with all other receipts in the synthetic fuel
producing counties grant fund attributable to revenues for the
fiscal year during which the eighteen month period ends, and shall
then be reallocated equally to all synthetic fuel producing
counties as part of the provisional share of each, as if the
repooled moneys were tax revenues deposited into the fund during
the fiscal year in which the eighteen month period ended. For
purposes of this subsection, the "initial plan submission date"
means the earlier of: (i) The required submission date, as
prescribed by the director of the development office, for the initial plan for use of the county's provisional share of the
synthetic fuel producing counties grant fund for the fiscal year,
with such extensions of time to file as may be authorized under
rules promulgated by the director of the development office, or
(ii) the actual date of submission of the initial plan for the
fiscal year. For purposes of this subsection, the term "initial
plan" means the first plan for use that was submitted, or that
should have been submitted, by a county for the fiscal year, before
the submission of any amended, revised or resubmitted plan by the
county for that fiscal year.
(B) Any synthetic fuel producing county which fails to timely
submit a plan for use of its provisional share of the synthetic
fuel producing counties grant fund, with such extensions of time to
file as may be authorized under rules promulgated by the director
of the development office, shall lose its entitlement to its
provisional share of revenues deposited in the fund and
attributable to that fiscal year, and the provisional share that
would have been attributable to that county for that year shall be
pooled with all other receipts in the synthetic fuel producing
counties grant fund attributable to revenues for the fiscal year,
and shall be reallocated equally among the remaining synthetic fuel
producing counties other than the county or counties that have failed to timely file the plan for use, and shall be made available
for distribution to those remaining counties, as part of their
provisional share for the fiscal year.
(C) Funds encumbered pursuant to approval of the director of
the development office under this subsection shall not be subject
to repooling: Provided, That if the director of the development
office determines that moneys previously distributed to a county
out of the synthetic fuel producing counties grant fund have not
been used as required under the approved plan for the county, or
determines that previously distributed moneys derived from
encumbered funds have not been used for the qualified purpose for
which the encumbrance was originally approved, or if there appears
to be a reasonable probability that encumbered funds will not be
used for that qualified purpose, the director of the development
office may revoke the encumbrance of any funds of that synthetic
fuel producing county remaining in the fund, and repool the funds
so encumbered for reallocation to all synthetic fuel producing
counties. The director of the development office may, in the
director's discretion, give the county an opportunity to cure the
nonqualified use of moneys derived from the synthetic fuel
producing counties grant fund, or to submit an alternative plan for
use of the encumbered funds, which may be approved by the director if that plan complies with the requirements of this section.
(g) Promulgation of rules by the director of the development
office authorized. -- The director of the development office, in
his or her discretion, may promulgate an emergency rule, as
provided in article three, chapter twenty-nine-a of this code, that
clarifies, explains or implements the synthetic fuel producing
counties grant program, distribution of moneys out of, or
encumbrance of moneys in, the synthetic fuel producing counties
grant fund. The director of the development office is hereby
granted continuing authority to promulgate in accordance with
article three, chapter twenty-nine-a of this code such
interpretive, legislative or procedural rules, or any combination
thereof, for administration of the synthetic fuel producing
counties grant program, as the director of the development office
may find necessary and appropriate. The director of the
development office may prescribe criteria for qualification under
the infrastructure improvement use requirement and the economic
development requirement of this section.
(h) There is hereby dedicated and allocated to the West
Virginia the development office, sixty thousand dollars annually
for administration of the synthetic fuel producing counties grant
program under this section. Sixty thousand dollars shall be paid out of the synthetic fuel producing counties grant fund to the
director of the development office each fiscal year for
administration of the synthetic fuel producing counties grant
program.
(f) (i) Effective date. -- (1) This section shall take as
enacted in the year two thousand took effect upon enactment. and
The measure of tax shall include all synthetic fuel sold or shipped
after the first day of January, two thousand one, regardless of
when the synthetic fuel was manufactured or produced in this state.
(2) Amendments to this section enacted during the fifth
extraordinary session of the Legislature in the year two thousand
one, shall have retroactive effect to the first day of January, two
thousand one, and the measure of tax shall include all synthetic
fuel sold or shipped after the first day of January, two thousand
one, regardless of when the synthetic fuel was manufactured or
produced in this state.
(g) (j) Expiration date. -- The tax imposed in this section
shall expire and become void and of no effect for synthetic fuels
produced after the thirtieth day of June, two thousand seven.
ARTICLE 13A. SEVERANCE TAXES.
§11-13A-3e. Imposition of tax on privilege of extracting and
recovering material from refuse, gob piles or other sources of waste coal to produce coal.
(a) The Legislature hereby finds and declares the following;
(1) That some mining operations in this state process coal to
create a saleable clean coal product.
(2) That the by-product, waste or residue created from
processing coal is commonly deposited in what are known as refuse
or gob piles.
(3) That, as a result of technological developments and other
factors, the material contained in some refuse or gob piles located
in this state can be recovered and further processed to produce
saleable clean coal.
(4) That, under the existing laws of this state, coal produced
from processing material contained in refuse, gob piles, slurry
ponds, pond fines or other sources of waste coal would be subject
to the annual privilege tax imposed on the severance of coal
pursuant to section three, article thirteen-a of this chapter and
the minimum severance tax imposed by section three, article
twelve-b of this chapter.
Based on the foregoing findings, the Legislature concludes
that an incentive to extracting and recovering material contained
in refuse, gob piles and other sources of waste coal located in
this state, and subsequently processing, washing and preparing this material to produce coal, should be implemented to encourage the
production of this coal from refuse or gob piles located in this
state.
(b) Imposition of tax. -- In lieu of, (i) the annual privilege
tax imposed on the severance of coal pursuant to imposed by section
three of this article, thirteen-a of this chapter (ii) the
additional tax on severance, extraction and production of coal
imposed by section six of this article, and (ii) (iii) the minimum
severance tax imposed by section three, article twelve-b of this
chapter for the privilege of engaging or continuing within this
state in the business of extracting and recovering material from a
refuse, gob pile or other sources of waste coal, and subsequently
processing, washing and preparing this extracted or recovered
material to produce coal for sale, profit or commercial use, there
is hereby levied and shall be collected from every person
exercising that privilege an annual privilege tax.
(c) Rate and measure of tax. -- The tax imposed in subsection
(b) of this section shall be two and one-half percent of the gross
value of the coal so produced, as shown by the gross proceeds
derived from the sale thereof by the producer, except as otherwise
provided in this article.
(d) Tax in addition to other taxes. -- The tax imposed by this section applies to all persons extracting and recovering material
from refuse, gob piles or other sources of waste coal located in
this state, and subsequently processing, washing and preparing this
extracted and recovered material to produce coal for sale, profit
or commercial use, and shall be in addition to all other taxes
imposed by law: Provided, That the tax imposed by this section is
in lieu of the tax imposed pursuant to section sections three and
six of this article thirteen-a of this chapter and the tax imposed
by section three, article twelve-b of this chapter. Provided,
however, That funding provided by taxes pursuant to this section
and section two-f, article thirteen of this chapter shall be
administered by the office of community development
(e) Exemption. -- That the tax imposed in subsection (b) shall
not apply to any electrical power co-generation plant burning
material from its wholly owned refuse or gob pile.
(f) Dedication of taxes collected, creation of fund. --
(1) There is hereby created in the state treasury a fund
entitled "the waste coal producing counties fund," which shall be
a revolving fund that shall carry over each fiscal year. The taxes
collected under the provisions of this section shall be deposited
in the waste coal producing counties fund, and are hereby dedicated
to the county commissions of the counties in which the refuse, gob piles or other sources of waste coal are located, from which
taxable waste coal production has occurred during the year, for use
in economic development and infrastructure improvements: Provided,
That the county shall use ninety percent of the funds for use in
infrastructure improvement and ten percent of the funds for
economic development.
(2) Moneys in the waste coal producing counties fund shall be
distributed by the state treasurer annually to the counties in
which the refuse, gob piles or other sources of waste coal are
located, from which taxable waste coal production has occurred
during the year, in an amount pro-rated to the number of tons of
taxable waste coal produced in each such county during the
preceding year. The distribution shall be paid separate from any
other payment of moneys to the county by the treasurer. For
purposes of this subdivision (2) the term "ton" means two thousand
pounds.
(3) The office of chief inspector shall annually determine
that counties' expenditures of moneys distributed under this
section is in compliance with the requirements of this section.
NOTE: The purpose of this bill is:
(1) To clarify that distributions of revenues from the
synthetic fuel tax are not treated as a one time distribution out
of the 6 year life of the provision, but will be made annually.
(2) To establish funds into which to deposit the synthetic
fuel tax and waste coal tax revenues, and to establish certain
distribution formulae.
The bill requires that the first $4 million from the synthetic
fuel tax is deposited in the Mining and Reclamation Operations
Fund, which funds certain operations of the Division Of
Environmental Protection.
The next $2 million is distributed as an equal share to each
of the synthetic fuel producing counties. This distribution is
done through a grant program administered by the West Virginia
Development Office, and $60,000 is distributed to the Development
Office out of synthetic fuel tax revenues for administration of the
program. The bill gives the Development Office authority to
promulgate regulations to administer the program.
The bill requires that the distributed revenues be used by the
synthetic fuel producing counties in the proportion: 90% for
infrastructure improvement and 10% for economic development. The
synthetic fuel producing counties will submit a plan to the
Development Office describing their proposed use of the money under
this 90% -- 10% guideline. The Development Office then approves or
disapproves the plan, and consequently approves or disapproves
distribution of the money to the county, or encumbers the money for
later distribution to the county based on the plan. If the plan is
not approved, the money allocable to that county is not distributed
to the county or encumbered for use by the county.
Although synthetic fuel tax revenues distributed to counties
can be used for funds matching so long as the 90 - 10 percent
guideline is met, the bill requires that synthetic fuel producing
counties cannot use funds derived from the synthetic fuel producing
counties grant fund as funds to be matched by the West Virginia
Development Office under a matching program authorized by W. Va.
Code §5B-2-3.
Counties that have not obtained approval of their plan within
18 months of the initial submission date for the plan, lose
entitlement to funds for that fiscal year for which the provisional share would have been available, and undistributed and unencumbered
funds allocable to that county are repooled with other moneys in
the fund, and again made available for equal distribution to the 5
synthetic fuel counties for the fiscal year during which the 18
month period expires.
The next $2 million of synthetic fuel tax revenues goes as an
equal share to each of the synthetic fuel nonproducing counties.
The synthetic fuel nonproducing counties are required to use the
moneys so distributed for regional jail and correctional authority
and county jail expenses, and any remainder of such moneys may be
used for any lawful purpose the county commission may choose.
Any excess of synthetic fuel tax revenues beyond this total of
$8.06 million goes to the General Fund.
$4Million to the Mining and Reclamation Operations Fund
$2Million to synthetic fuel producing counties in equal
shares
$60Thousand to the Development Office for administration
of the program
$2 Million to synthetic fuel nonproducing counties in
equal shares
$8.06Million total
Excess over $8,060,000 to the General Fund
The waste coal tax is distributed to each of the waste coal
producing counties, in proportion to the tonnage production of
each. The bill requires that the distributed revenues be used by
the waste coal counties in the proportion: 90% for infrastructure
improvement and 10% for economic development.
(3) To clarify that the West Virginia Development Office is in
charge of distribution of the moneys to the synthetic fuel
producing counties, but not to the nonsynthetic fuel counties or to
the waste coal distributee counties.
(4) To clarify that a synthetic fuel producing county is a
county where the synthetic fuel manufacturing plant is physically
located.
(5) To make a technical correction to change language of the
statute to say that certain funding is administered, not by the "office of community development" (which does not exist), but
instead by the West Virginia Development Office.
(6) To make a technical correction to clarify that the
synthetic fuel tax applies to synthetic fuel manufactured by a
synthetic fuel manufacturing plant without regard to the date of
construction or commencement of operations of the plant.
(7) To clarify that the distribution of synthetic fuel tax
revenues to synthetic fuel producing counties will be made to those
counties that have a synthetic fuel manufacturing plant operating
in them, without regard to whether the plant was operating on April
1, 2001. This provision allows a county in which a new synthetic
fuel manufacturing plant may be built in the future to receive a
distribution of synthetic fuel tax revenues as a synthetic fuel
producing county.
Strike-throughs indicate language in current law that would
be deleted and underscoring indicates new language that would be
added.