Introduced Version
House Bill 3072 History
| Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 3072
(By Delegates Hunt, R. Phillips
and Williams)
[Introduced March 22, 2013; referred to the
Committee on Energy, Industry and Labor, Economic
Development and Small Business then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13DD-1, §11-13DD-
2, §11-13DD-3, §11-13DD-4 and §11-13DD-5, all relating to
providing a tax credit to coal producers who sell coal to
taxpayers who increase their consumption of West Virginia coal
in this state for the purpose of increasing coal production
and coal related employment in West Virginia.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §11-13DD-1, §11-13DD-2,
§11-13DD-3, §11-13DD-4 and §11-13DD-5, all to read as follows:
ARTICLE 13DD. WEST VIRGINIA COAL EMPLOYMENT ENHANCEMENT ACT.
§11-13DD-1. Legislative finding.
_____The Legislature finds that this state and this region are
blessed with large quantities of mineable coal that is suitable for use as fuel to generate electricity and for other industrial uses;
that other coal producing states in the region offer incentives to
businesses to consume coal produced in those states; that there are
sound economic reasons for locating electric power generating
facilities and other industrial facilities that consume coal in the
coal fields; and that many West Virginia miners work in mines
located in this state and that the state will benefit by
encouraging additional production of West Virginia coal.
Therefore, encouraging greater utilization of coal produced by West
Virginia miners and consumed at West Virginia power plants and
industrial facilities, is in the public interest and promotes the
general welfare of the people of this state, in that it will
increase employment opportunities for West Virginia residents.
§11-13DD-2. Definitions.
_____(1) Base year. - The term "base year" means the calendar year
ending on December 31, 2012.
_____(2) Eligible coal. - The term "eligible coal" means coal
produced from a mine located in this state and upon which the
severance tax imposed by subsection three-b, article thirteen-a of
this chapter was paid.
_____(3) Eligible taxpayer. - The term "eligible taxpayer" means
any person subject to the severance tax imposed by subsection
three-b, article thirteen-a of this chapter that during the tax
year produces and sells eligible coal that is consumed at a power plant or industrial facility located in this state and certified as
qualified coal by the purchaser.
_____(4) Qualified coal. - The term "qualified coal" means the
number of tons of eligible coal consumed at a power plant or
industrial facility located in this state during the tax year, in
excess of the number of tons of eligible coal consumed at that
power plant or industrial facility during the base year.
_____(5)Other terms used in this article have the meanings
ascribed to them in section four, article ten of this chapter or
section one, article thirteen of this chapter, unless the context
in which it is used in this article clearly requires another
meaning.
§11-13DD-3. Credit allowed; amount of credit; effective date.
_____(a) An eligible taxpayer shall be allowed a credit, as
determined under subsection (b) of this section against its
liability for taxes imposed by this state as provided in subsection
(c) of this section.
_____(b) Amount of credit. - The credit allowed by this subsection
is an amount equal to $3 per ton multiplied by the number of tons
of qualified coal produced by the eligible taxpayer during the tax
year: Provided, That if the amount of severance tax imposed by
section three-b, article thirteen-a of this chapter, and paid by
the producer of the qualified coal was less than $3 per ton, then
the amount of credit allowed to the eligible taxpayer by this section is an amount equal to the amount of severance tax paid per
ton on the qualified coal multiplied by the number of tons of
qualified coal consumed by the eligible taxpayer during the tax
year.
_____(c) Application of the current year credit allowance. - An
eligible taxpayer that produces qualified coal may apply the credit
allowed under this article solely to reduce its liability for
severance tax imposed by subsection three-b, article thirteen-a of
this chapter.
_____(d) Unused credit. - If any credit remains after application
of subsection (c) of this section, the amount thereof is carried
forward to each ensuing tax year until used as provided in
subsection (c) of this section or until the expiration of the third
taxable year subsequent to the tax year. If any unused credit
remains after the third subsequent year, the amount thereof is
forfeited.
_____(e) Effective date. - The credit allowed by this section shall
apply to tax liabilities for calendar years beginning on or after
January 1, 2013.
§11-13DD-4. Certification by purchasers of qualified coal.
_____(a) A person purchasing eligible coal for consumption at a
power plant or industrial facility located in this state during the
tax year shall, if timely requested by the eligible taxpayer
producing and selling the coal, certify the number of tons of qualified coal that was purchased from the eligible taxpayer during
the tax year. A person requested to certify coal as qualified coal
to an eligible taxpayer, shall not certify tonnage in excess of the
limits established in section four, article thirteen-DD of this
chapter as qualified coal during any tax year. Such certifications
for the tax year shall be provided to the eligible taxpayer no
later than thirty days following the end of the calendar year.
_____(b) All certifications shall be provided to the eligible
taxpayer in the form prescribed by the tax commissioner and provide
such information as he deems necessary for determining compliance
with this article. An employee who signs the certification on
behalf of a proprietorship, corporation, partnership or a group or
combination acting as a unit shall be presumed to have authority to
make and sign the certification on behalf of his or her employer.
§11-13DD-5. Credit recapture; interest; penalties; additions to
tax; statute of limitations.
__If it appears upon audit or otherwise that an eligible
taxpayer has improperly claimed the credit allowed by this article,
the amount improperly claimed and which the eligible taxpayer was
not entitled to take shall be recaptured. Amended returns shall be
filed for any tax year for which the credit was improperly taken.
Any additional taxes due under this chapter shall be remitted with
the amended return or returns filed with the tax commissioner,
along with interest, as provided in section seventeen, article ten of this chapter, and a ten percent penalty, which may be waived by
the tax commissioner if the taxpayer shows that the overclaimed
amount was due to reasonable cause and not due to willful neglect,
and such other penalties and additions to tax as may be applicable
pursuant to the provisions of article ten of this chapter.
Notwithstanding the provisions of article ten of this chapter, the
statute of limitations for the issuance of an assessment of tax by
the tax commissioner shall be five years from the date of the
filing of any tax return on which this credit was taken or five
years from the date of payment of any tax liability calculated
pursuant to the assertion of this credit, whichever is later.
NOTE: The purpose of this bill is to provide a tax credit to
coal producers who sell coal to taxpayers who increase their
consumption of West Virginia coal in this state for the purpose of
increasing coal production and coal related employment in West
Virginia.
This article is new, therefore, it has been completely
underscored.