H. B. 4457
(By Delegate Doyle)
[Introduced February 8, 2012; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §11-4-9a, relating to eliminating the real property tax on nonproducing mineral estates; implementing an additional one percent severance tax; making findings; and providing rule-making authority.
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 section, designated §11-4-9a, to read as follows:
ARTICLE 4. ASSESSMENT OF REAL PROPERTY.
§11-4-9a. Exemption of nonproducing mineral estates; severance tax; findings; rulemaking.
(a) Notwithstanding Article X of the Constitution of West Virginia, section nine of this article and any other provision of this code that concerns the taxation of minerals as a real property estate, the Legislature finds that because of the difficulty of ascertaining the value of a nonproducing mineral right and in order to ensure fair, equal and uniform taxation throughout the state, a nonproducing mineral right has zero value for the purpose of property tax assessment.
(b) When a nonproducing mineral right begins producing minerals, the mineral right shall be assessed for tax purposes in accordance with the applicable provisions of this code.
(c) When the minerals are extracted, in addition to other severance taxes permitted by this code, there is imposed an additional one percent severance tax on the value of those minerals. This additional tax shall be collected in same manner as provided by section seventeen, article thirteen-a of this chapter. Within sixty days of collection, the Tax Commissioner shall transfer the proportional share of the funds to the county where the minerals were produced.
(d) The Tax Commissioner shall propose for legislative approval rules necessary to implement this section in accordance with article three, chapter twenty-nine-a of this code.
NOTE: The purpose of this bill is to eliminate the real property tax on nonproducing mineral estates and replace it with an additional one percent severance tax. The bill also makes findings and provides rule-making authority.
This section is new; therefore, it has been completely underscored.