Senate Bill No. 385

(By Senators Helmick and Bowman)

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[Introduced March 5, 2001; referred to the Select Committee on Economic Development; and then to the Committee on Finance.]

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A BILL to amend and reenact section three-b, article thirteen-a, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the severance tax on timber; and dedicating that tax to the counties for economic development and infrastructure.

Be it enacted by the Legislature of West Virginia:
That section three-b, article thirteen-a, 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 13A. SEVERANCE TAXES.

§11-13A-3b. Imposition of tax on privilege of severing timber.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of severing timber for sale, profit or commercial use, there is hereby levied and shall be collected from every person exercising such the privilege an annual privilege tax.
(b) Rate and measure of tax. -- The tax imposed in subsection (a) of this section shall be is three and twenty-two hundredths percent of the gross value of the timber produced, as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided in this article.
(c) Tax in addition to other taxes. -- The tax imposed by this section shall apply applies to all persons severing timber in this state, and shall be is in addition to all other taxes imposed by law.
(d) Effective date. -- This section, as amended in the year one thousand nine hundred ninety-three two thousand one, shall apply applies to gross proceeds derived after the thirty-first day of May of such that year. The language of section three of this article, as in effect on the first day of January of such that year, shall apply applies to gross proceeds derived prior to the first day of June of such that year and, with respect to such the gross income, shall must be fully and completely preserved.
(e) Dedication of tax. -- After the effective date of this amendment to this section, the commissioner shall return all tax proceeds derived and collected from the severance of timber to the counties from which the timber was severed to be used by the counties solely for economic development and infrastructure.


NOTE: The purpose of this bill is to dedicate the severance tax on timber to the counties for economic development and infrastructure.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.