H. B. 2056
(By Delegate Hubbard)
[Introduced February 14, 2001; referred to the
Committee on Finance.]
A BILL to amend article thirteen-a, chapter eleven of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
three-e, relating to the imposition of an additional privilege
tax on the severance of natural resources to create and fund
the West Virginia education excellence fund.
Be it enacted by the Legislature of West Virginia:
That article thirteen-a, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
three-e, to read as follows:
ARTICLE 13A. SEVERANCE TAXES.
§11-13A-3e. Imposition of additional tax on the privilege of
severing natural resources; creation of public
education excellence fund.
(a) Imposition of tax.-- For the privilege of continuing
within this state in the business of severing, extracting, reducing
to possession and producing for sale, profit or commercial use any
natural resource, product or product listed and taxed under
sections three, three-a, three-c and four of this article, there is
hereby levied and shall be collected from every person exercising
this privilege an annual privilege tax which shall be dedicated to
the funding of the West Virginia education excellence fund.
(b) Rate and measure of tax.-- The tax imposed in subsection
(a) of this section shall be one percent of the gross value of the
natural resources produced as shown by the gross proceeds derived
from the sale thereof by the producer.
(c) Tax in addition to other taxes. -- The tax imposed by this
section shall apply to all persons severing natural resources in
this state as those resources are defined in sections three,
three-a, three-b, three-c and four of this article and shall be in
addition to all other taxes imposed by law.
(d) Dedication of revenue from tax.-- There is hereby created the West Virginia education excellence fund. All revenues received
pursuant to this section shall be dedicated to this fund. This
fund shall be managed by the West Virginia investment management
board created pursuant to section three, article six, chapter
twelve of this code. No principal amounts of the fund may be
expended which would leave a balance of less than two hundred fifty
million dollars in the fund. Beginning with the fiscal year
starting the first day of July, two thousand one, and every year
thereafter, all interest earned from the investment of the fund
shall be transferred to the general fund for the sole use of
increasing funding for public education above and beyond the amount
calculated as the preliminary computation of funds necessary to
fully fund the state schools support program for the next school
year. Any principal in excess of two hundred fifty million dollars
accumulated by the fund may be transferred to the general fund for
the sole purpose for which the interest of this fund may be used by
act of the Legislature.
NOTE: The purpose of this bill is to impose an additional one
percent severance tax on natural resources to create and fund the
West Virginia education excellence fund to produce additional
funding for public education.
This section is new; therefore, strike-throughs and
underscoring have been omitted.