SENATE
HOUSE
JOINT
BILL STATUS
STATE LAW
REPORTS
EDUCATIONAL
CONTACT
home
home
Introduced Version House Bill 3000 History

OTHER VERSIONS  -  Committee Substitute  |     |  Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 3000


(By Mr. Speaker, (Mr. Thompson) and Delegate Armstead)

[By Request of the Executive]

[Introduced March 9, 2009; referred to the

Committee on the Judiciary then Finance.]




A BILL to amend and reenact §11-13-2 of the Code of West Virginia, 1931, as amended; to amend said code by adding thereto a new section, designated §11-13-2q; and to amend and reenact §24-2- 11a of said code, all relating to a business and occupation tax on the business of the transmission of electricity through certain electric transmission lines; imposing a business and occupation tax; setting forth legislative findings; defining certain terms; providing for the rate and measure of tax; prohibiting certain credits against tax; providing for the dedication of tax proceeds; establishing the Electric Retail Ratepayer Relief Fund and the Crossed County Transmission Line Fund; providing for the distribution of tax proceeds; specifying counties' expenditure of funds; authorizing the Tax Commissioner to promulgate rules; providing for severability; and requiring the Public Service Commission to make certain findings before approving an application for a certificate of public convenience and necessity for the construction of certain high voltage transmission lines.

Be it enacted by the Legislature of West Virginia:
That §11-13-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted; that said code be amended by adding thereto a new section, designated §11-13-2q; and that §24-2-11a of said code be amended and reenacted, all to read as follows:
CHAPTER ELEVEN. TAXATION.

ARTICLE 13. BUSINESS AND OCCUPATION TAX.
§11-13-2. Imposition of privilege tax.
(a) Imposition of tax. -- There is hereby levied and shall be collected annual privilege taxes against the persons, on account of their business and other activities, and in the amount to be determined by the application of rates against the measures of tax as set forth in sections two-d, two-e, two-f, two-m, two-n, and two-o, and two-q of this article.
(b) If any person liable for any tax under section two-m shall ship or transport his products or any part thereof out of the state without making sale of such products, the value of the products in the condition or form in which they exist immediately before transportation out of the state shall be the basis for the assessment of the tax imposed in the applicable section, except in those instances in which another measure of the tax is expressly provided. The Tax Commissioner shall prescribe equitable and uniform rules for ascertaining the value.
(c) In determining value, however, as regards sales from one to another of affiliated companies or persons, or under other circumstances where the relation between the buyer and seller is such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale, the Tax Commissioner shall prescribe uniform and equitable rules for determining the value upon which the applicable privilege tax shall be levied, corresponding as nearly as possible to the gross proceeds from the sale of similar products of like quality or character where no common interest exists between the buyer and seller but the circumstances and conditions are otherwise similar.
§11-13-2q. Legislative findings; business of transmission of electricity through certain electric transmission lines; rate and measure of tax; definitions; credits not allowed against tax; emergency rule authorized; severability.

(a)
Legislative findings. --
(1) The Federal Energy Regulatory Commission has authorized the formation of Regional Transmission Organizations and Independent System Operators for the purposes of promoting competition in wholesale electricity markets and exercising independent functional control of the interconnected regional electric transmission systems necessary to deliver electricity from electric generating plants to the distribution systems of electric load serving entities.
(2) Pursuant to authorization by the Federal Energy Regulatory Commission, Regional Transmission Organizations and Independent System Operators operate competitive wholesale electricity markets and functionally control the transmission of electricity across wide geographic regions, matching generation to the load instantaneously to keep supply and demand of electricity in balance and to assure that sufficient generation is available in case demand rises or a power plant or transmission line is out of service.
(3) Regional Transmission Organizations and Independent System Operators also provide nondiscriminatory transmission access, which facilitates competition among wholesale suppliers.
(4) Regional Transmission Organizations and Independent System Operators are authorized by the Federal Energy Regulatory Commission to require the construction or modification of electric transmission lines and other transmission facilities to assure the reliability of the interconnected regional transmission systems and to reduce economic congestion in the transmission of electricity.
(5) While the construction of long distance, extra-high voltage electric transmission lines as required by Regional Transmission Organizations and Independent System Operators promotes the purposes for which such entities were created and serves a public purpose, the siting, construction, operation and maintenance of long distance, extra-high voltage electric transmission lines places significant additional burdens on the state, local governments and their citizens, affects public and private land use, increases electric rates and impacts aesthetic and recreational values important to the state, local governments and their citizens.
(6) Accordingly, the imposition of a privilege tax on the transmission of electricity through an electric transmission line that: (A) Was constructed by a public utility, person or corporation in West Virginia at the direction of a Regional Transmission Organization or Independent System Operator pursuant to authority granted by the Federal Energy Regulatory Commission; (B) has a voltage carrying capacity of at least four hundred fifty kilovolts; and (C) Was designed and constructed to transmit electricity over a total distance of at least fifty miles within this state whether interconnected with one or more electric substations located either within this state or outside of this state, serves a legitimate public purpose.
(b)
Definitions. -- For purposes of this section:
(1) "County infrastructure project" means any project of a public nature that is intended to foster and enhance the basic physical and organizational structures needed for the operation of a county including, but not limited to, roads, bridges, buildings, curbs, sidewalks, water supply, sewers, electric lines and telecommunications.
(2) "Kilovolt" means one thousand volts;
(3) "Long distance, extra-high voltage electric transmission line" means a series of towers, wires, electrical substations and other transmission-related equipment that: (A) Was constructed by a public utility, person or corporation in West Virginia at the direction of a Regional Transmission Organization or Independent System Operator pursuant to authority granted by the Federal Energy Regulatory Commission; (B) has a voltage carrying capacity of at least four hundred fifty kilovolts; and (C) was designed and constructed to transmit electricity over a total distance of at least fifty miles within this state whether interconnected with one or more electric substations located either within this state or outside of this state;
(4) "Transmission of electricity" means the act or process of causing electricity to pass or be conveyed from one place or geographical location to another place or geographical location through an electric transmission line; and
(5) "Voltage carrying capacity" means the rated voltage capacity of an electric transmission line expressed in kilovolts. For the purpose of computing the tax imposed by subsection (C) of this section, the voltage carrying capacity of any long distance, extra-high voltage electric transmission line shall be set an amount equal to five hundred kilovolts.
(c)
Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of the transmission of electricity through one or more long distance, extra-high voltage electric transmission lines, for sale, profit or commercial use, there is hereby levied and shall be collected from every public utility, person or corporation exercising such privilege an annual tax.
(d)
Rate and measure of tax. -- The tax imposed in subsection (c) of this section shall be computed by multiplying the number of miles of long distance, extra-high voltage electric transmission lines in service in West Virginia during the tax year by an amount equal to the product of the tax rate of $750 per mile multiplied by the voltage carrying capacity of the long distance, extra-high voltage electric transmission line.
(e)
Credits not allowed against tax. -- When determining the amount of tax due under this section, no credit shall be allowed under any provision of this code unless it is expressly provided that the credit applies to the tax on the privilege of operating a long distance, extra-high voltage electric transmission line.
(f)
Dedication of taxes collected. -- Effective July 1, 2009:
(1) One-third of the net proceeds of the tax imposed in subsection (c) of this section shall be dedicated for the use and benefit of electric ratepayers impacted by the construction of long distance, extra-high voltage electric transmission lines. The proceeds of this dedicated tax shall be distributed without appropriation by the State Treasurer in the manner specified in this section for the purpose of proportionately reducing the rates of all electric retail customers in the state;
(2) One-third of the net proceeds of the tax imposed in subsection (c) of this section is hereby dedicated for the use and benefit of counties crossed or containing long distance, extra-high voltage electric transmission lines. The proceeds of this dedicated tax shall be distributed without appropriation by the State Treasurer in the manner specified in this section to the various counties crossed or containing long distance, extra-high voltage electric transmission lines; and
(3) The remaining one-third of the net proceeds of the tax imposed in subsection (c) of this section shall be dedicated for the use and benefit of the West Virginia Infrastructure and Jobs Development Council. The proceeds of this dedicated tax shall be deposited in the West Virginia Infrastructure Fund, as established in section nine, article fifteen-a, chapter thirty-one of this code, for the purpose of funding infrastructure projects, as that term is defined in section two, article fifteen-a, chapter thirty- one of this code.
(g)
Creation of funds. --
(1) There is hereby created in the State Treasury a special unappropriated revolving fund entitled the "Electric Retail Ratepayer Relief Fund." The fund shall consist of the portion of the tax proceeds collected by the Tax Commissioner that is dedicated for the use and benefit of electric ratepayers. The Tax Commissioner shall deposit moneys into the fund, from time to time, as such proceeds are received.
(2) There is hereby created in the State Treasury a special unappropriated revolving fund entitled the "Crossed County Transmission Line Fund." The fund shall consist of the portion of the tax proceeds collected by the Tax Commissioner that is dedicated for the use and benefit of counties containing or crossed by long distance, extra-high voltage electric transmission lines. The Tax Commissioner shall deposit moneys into the fund, from time to time, as such proceeds are received.
(h)
Distribution of moneys in the Electric Retail Ratepayer Relief Fund and Crossed County Transmission Line Fund; use of funds by counties; special budgets required. --
(1) Moneys in the Electric Retail Ratepayer Relief Fund shall be distributed without appropriation by the State Treasurer semiannually to the Public Service Commission. The distribution shall be paid separate from any other payment of moneys to the Public Service Commission by the State Treasurer, and shall be held in a separate account by the Public Service Commission until used for the purpose of proportionately reducing the rates of all electric retail customers in West Virginia. The Public Service Commission shall use the funds available in any appropriate manner to achieve the purposes of this section.
(2) Moneys in the Crossed County Transmission Line Fund shall be distributed without appropriation by the State Treasurer annually to counties containing or crossed by long distance, extra- high voltage electric transmission lines. The distribution to each county shall be based on the proportion of the total miles of long distance, extra-high voltage electric transmission lines located within each county to the total miles of long distance, extra-high voltage electric transmission lines located within the state. Moneys distributed to a county pursuant to this section shall be deposited in the county general fund or a special fund established by the county for the receipt of such moneys and may be expended as follows:
(A) On or before March 28, 2010, and each March 28 thereafter, each county commission or other governing body receiving moneys pursuant to this section shall submit to the Tax Commissioner, on a form provided by the Tax Commissioner, a special budget detailing how the moneys are to be spent by the county in a fiscal year.
(B) The Tax Commissioner shall approve or disapprove, in whole or in part, a special budget within thirty days of his or her receipt thereof. The Tax Commissioner shall approve of a special budget if he or she determines that any expenditures set forth therein are for county infrastructure projects. Any portion of a special budget not approved by the Tax Commissioner may be resubmitted for approval.
(C) A county may not expend moneys received pursuant to this section for any purpose that was not approved by the Tax Commissioner in accordance with this section.
(D) A county may, on its own initiative, submit amendments to its special budget for a fiscal year. The Tax Commissioner shall approve of an amendment to a county's special budget if he or she determines that any expenditures set forth therein are for county infrastructure projects.
(E) Any moneys distributed to a county pursuant to this section that remain in a county's general fund or special fund established in accordance with this subsection at the close of a fiscal year shall remain in the General Fund or special fund and may not be appropriated for any purpose that was not approved by the Tax Commissioner in accordance with this section.
(F) The balance of any unexpended moneys distributed to a county pursuant to this section may be included within a county's special budget for a subsequent fiscal year.
(3)
On or before December 15, 2010, and each December 15 thereafter, the Tax Commissioner shall deliver to the Clerk of the Senate and the Clerk of the House of Delegates a consolidated report of the special budgets submitted to the Tax Commissioner in accordance with this subsection for all county commissions or other governing bodies as of July 15 of the current year.
(4) The Office of Chief Inspector shall annually determine whether the distributions of funds from the Electric Retail Ratepayer Relief Fund and the Crossed County Transmission Line Fund are in compliance with the requirements of this section.
(i)
Emergency rule authorized, proration, allocation. -- The Tax Commissioner may 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 and that equitably prorates taxes for a taxable year in which a long distance, extra-high voltage electric transmission line is first placed in service or retired, or in which a taxpayer acquires or transfers an interest in a long distance, extra-high voltage electric transmission line, or that equitably allocates taxes among multiple taxpayers with interests in a long distance, extra-high voltage electric transmission line, it being the intent of the Legislature to prohibit multiple taxation of the same taxable transmission capacity.
(j)
Severability. -- If any provision of this section or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the section which can be given effect without the invalid provision or its application, and to this end the provisions of this section are declared to be severable.
CHAPTER 24. PUBLIC SERVICE COMMISSION.

ARTICLE 2. POWERS AND DUTIES OF PUBLIC SERVICE COMMISSION.
§24-2-11a. Requirement for certificate of public convenience and necessity before beginning construction of high voltage transmission lines; contents of application; notice; hearing; criteria for granting or denying certificate; regulations.

(a) No public utility, person or corporation shall begin construction of a high voltage transmission line of two hundred thousand volts or over, which line is not an ordinary extension of an existing system in the usual course of business as defined by the Public Service Commission, unless and until it or he or she shall have obtained from the Public Service Commission a certificate of public convenience and necessity approving the construction and proposed location of such transmission line.
(b) The application for such certificate shall be in such form as the commission may prescribe and shall contain:
(1) A description, in such detail as the commission may prescribe, of the location and type of line facilities which the applicant proposes to construct;
(2) A statement justifying the need for such facilities. If the applicant seeks a certificate of public convenience and necessity for a high voltage transmission line of four hundred fifty thousand volts or over, the applicant must demonstrate that it has studied the economic and technical feasibility of retensioning, double-circuiting or reconductoring existing transmission lines and, in light of that study, has determined that the proposed transmission line is required;
(3) A statement of the environmental impact of such line facilities; and
(4) Such other information as the applicant may deem relevant or the commission may require.
(c) Upon the filing of such application, the applicant shall publish, in such form as the commission shall direct, as a Class II legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code, the publication area for such publication to be each county in which any portion of the proposed transmission line is to be constructed, a notice of the filing of such application and that the commission may approve the same unless within fifteen days after completion of publication a written request for a hearing thereon has been received by the commission from a person or persons alleging that the proposed transmission line or its location is against the public interest. If such request be timely received, the commission shall set the matter for hearing on a date within sixty days from completion of said publication, and shall require the applicant to publish notice of the time and place of hearing in the same manner as is herein required for the publication of notice of the filing of the application.
(d) Within sixty days after the filing of said application, or if hearing shall be held thereon, within ninety days after final submission on oral argument or brief, the commission may approve the application if it shall find and determine that: the proposed transmission line
(1) The proposed transmission line will economically, adequately and reliably contribute to meeting the present and anticipated requirements for electric power of the customers served by the applicant or is necessary and desirable for present and anticipated reliability of service for electric power for its service area or region; and
(2) Retensioning, double-circuiting or reconductoring existing transmission lines is not technically or economically feasible to meet the present and anticipated requirements for electric power of the customers served by the applicant or to provide present and anticipated reliability of service for electric power for its service area or region; and
(2) (3) The proposed transmission line will result in an acceptable balance between reasonable power needs and reasonable environmental factors.
(e) The commission may impose conditions upon its approval of the application, or modify the applicant's proposal, to achieve an acceptable balance between reasonable power needs and reasonable environmental factors.
(f) The provisions of this section shall not apply to the construction of line facilities which will be part of a transmission line for which any right-of-way has been acquired prior to January 1, 1973.
(g) The commission shall prescribe such rules and regulations as it may deem proper for the administration and enforcement of the provisions of this section, which rules and regulations shall be promulgated in accordance with the applicable provisions of chapter twenty-nine-a of this code as if the same were set forth herein in extenso.
(h) Notwithstanding any other provision of the law to the contrary, the commission shall determine, in its discretion, which transmission line or lines crossing above the Ohio River must be marked to be made visible to airborne traffic flying in any area where such lines exist, and shall, within one hundred twenty days of the effective date of this section, promulgate rules requiring that all public utilities or persons who install or maintain such lines make the necessary markings.


NOTE: The purpose of this bill is to enact a business and occupation tax on the activity of transmitting electricity through certain long distance, extra-high voltage electric transmission lines; to dedicate the proceeds of the tax to relief for electric retail ratepayers, counties containing or crossed by long distance, extra-high voltage electric transmission lines and the West Virginia Infrastructure and Jobs Development Council; to provide for the distribution of tax proceeds; and to require applicants seeking to construct a high voltage transmission line over four hundred fifty kilovolts to study the feasibility of retensioning, double-circuiting or reconductoring existing transmission lines so as to maximize their transmission capacity without substantially impairing the reliability of the existing system.

Strike-throughs indicate language that would be stricken from the present law and underscoring indicates new language that would be added.
This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Email WebmasterWebmaster   |   © 2024 West Virginia Legislature **


X

Print On Demand

Name:
Email:
Phone:

Print