Source: http://www.legis.state.wv.us/WVCODE/code.cfm?chap=11&art=13A&section=19
Timestamp: 2015-03-05 00:50:55
Document Index: 160807642

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Chapter 11 | Article 11 - 13A
11 - 13 A- 1 11 - 13 A- 2 11 - 13 A- 3 11 - 13 A- 3 A 11 - 13 A- 3 B 11 - 13 A- 3 C 11 - 13 A- 3 D 11 - 13 A- 3 E 11 - 13 A- 4 11 - 13 A- 5 11 - 13 A- 5 A 11 - 13 A- 5 B 11 - 13 A- 6 11 - 13 A- 6 A 11 - 13 A- 7 11 - 13 A- 8 11 - 13 A- 9 11 - 13 A- 9 A 11 - 13 A- 10 11 - 13 A- 10 A 11 - 13 A- 11 11 - 13 A- 12 11 - 13 A- 13 11 - 13 A- 14 11 - 13 A- 15 11 - 13 A- 16 11 - 13 A- 16 A 11 - 13 A- 17 11 - 13 A- 18 11 - 13 A- 19 11 - 13 A- 20 11 - 13 A- 20 A 11 - 13 A- 21 11 - 13 A- 22 11 - 13 A- 23 11 - 13 A- 24 11 - 13 A- 25 11 - 13 A- 20 A 11 - 13 P- 1 11 - 13 P- 2 11 - 13 P- 3 11 - 13 P- 4 11 - 13 P- 5 11 - 13 P- 6 11 - 13 P- 7 11 - 13 P- 8 11 - 13 P- 9 11 - 13 P- 10 11 - 13 P- 11 13AA - COMMERCIAL PATENT INCENTIVE
11 - 13 A- 1 11 - 13 A- 2 11 - 13 A- 3 11 - 13 A- 3 A 11 - 13 A- 3 B 11 - 13 A- 3 C 11 - 13 A- 3 D 11 - 13 A- 3 E 11 - 13 A- 4 11 - 13 A- 5 11 - 13 A- 5 A 11 - 13 A- 5 B 11 - 13 A- 6 11 - 13 A- 6 A 11 - 13 A- 7 11 - 13 A- 8 11 - 13 A- 9 11 - 13 A- 9 A 11 - 13 A- 10 11 - 13 A- 10 A 11 - 13 A- 11 11 - 13 A- 12 11 - 13 A- 13 11 - 13 A- 14 11 - 13 A- 15 11 - 13 A- 16 11 - 13 A- 16 A 11 - 13 A- 17 11 - 13 A- 18 11 - 13 A- 19 11 - 13 A- 20 11 - 13 A- 20 A 11 - 13 A- 21 11 - 13 A- 22 11 - 13 A- 23 11 - 13 A- 24 11 - 13 A- 25 11 - 13 A- 20 A 11 - 13 P- 1 11 - 13 P- 2 11 - 13 P- 3 11 - 13 P- 4 11 - 13 P- 5 11 - 13 P- 6 11 - 13 P- 7 11 - 13 P- 8 11 - 13 P- 9 11 - 13 P- 10 11 - 13 P- 11 13Q - ECONOMIC OPPORTUNITY TAX CRE
WVC 11 - 13 A- ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
WVC 11 - 13 P- ARTICLE 13P. TAX CREDIT FOR MEDICAL LIABILITY INSURANCE PREMIUMS.
WVC 11 - 13 A- 1 §11-13A-1. Short title; arrangement and classification.
This article may be cited as the "Severance and Business
Privilege Tax Act of 1993". No inference, implication or
presumption of legislative construction shall be drawn or made by
reason of the location or grouping of any particular section or
provision or portion of this article, and no legal effect shall be
given to any descriptive matter of headings relating to any part,
section, subsection, subdivision or paragraph of this article.
WVC 11 - 13 A- 2 §11-13A-2. Definitions.
(a) General rule. -- When used in this article, or in the
administration of this article, the terms defined in subsection
(b), (c) or (d) of this section shall have the meanings ascribed to
them by this section, unless a different meaning is clearly
required by the context in which the term is used or by specific
(b) General terms defined. -- Definitions in this subsection
apply to all persons subject to the taxes imposed by this article.
(1) "Business" includes all activities engaged in, or caused
to be engaged in, with the object of gain or economic benefit,
direct or indirect, and whether engaged in for profit, or not for
profit, or by a governmental entity: Provided, That "business"
does not include services rendered by an employee within the scope
of his or her contract of employment. Employee services, services
by a partner on behalf of his or her partnership and services by a
member of any other business entity on behalf of that entity are
the business of the employer or partnership, or other business
entity as the case may be, and reportable as such for purposes of
the taxes imposed by this article.
(2) "Corporation" includes associations, joint-stock companies
and insurance companies. It also includes governmental entities
when and to the extent such governmental entities engage in
activities taxable under this article.
(3) "Delegate" in the phrase "or his delegate", when used in reference to the tax commissioner, means any officer or employee of
the state tax division of the department of tax and revenue duly
authorized by the tax commissioner directly, or indirectly by one
or more redelegations of authority, to perform the function
mentioned or described in this article or regulations promulgated
(4) "Fiduciary" means and includes a guardian, trustee,
executor, administrator, receiver, conservator or any person acting
in any fiduciary capacity for any person.
(5) "Gross proceeds" means the value, whether in money or
other property, actually proceeding from the sale or lease of
tangible personal property, or from the rendering of services,
without any deduction for the cost of property sold or leased or
expenses of any kind.
(6) "Includes" and "including", when used in a definition
contained in this article, shall not be deemed to exclude other
things otherwise within the meaning of the term being defined.
(7) "Partner" includes a member of a syndicate, group, pool,
joint venture or other organization which is a "partnership" as
(8) "Partnership" includes a syndicate, group, pool, joint
which any privilege taxable under this article is exercised and
which is not within the meaning of this article a trust or estate
or corporation. "Partnership" includes a limited liability company which is treated as a partnership for federal income tax purposes.
(9) "Person" or "company" are herein used interchangeably and
include any individual, firm, partnership, mining partnership,
joint venture, association, corporation, trust or other entity, or
any other group or combination acting as a unit, and the plural as
well as the singular number, unless the intention to give a more
limited meaning is declared by the context.
(10) "Sale" includes any transfer of the ownership or title to
property, whether for money or in exchange for other property or
services, or any combination thereof. "Sale" includes a lease of
property, whether the transaction be characterized as a rental,
lease, hire, bailment or license to use. "Sale" also includes
rendering services for a consideration, whether direct or indirect.
(11) "Service" includes all activities engaged in by a person
for a consideration which involve the rendering of a service as
distinguished from the sale of tangible personal property:
Provided, That "service" does not include: (A) Services rendered
by an employee to his or her employer under a contract of
employment; (B) contracting; or (C) severing or processing natural
(12) "Tax" means any tax imposed by this article and, for
purposes of administration and collection of such tax, it includes
any interest, additions to tax or penalties imposed with respect
thereto under article ten of this chapter.
(14) "Taxable year" means the calendar year, or the fiscal
year ending during such calendar year, upon the basis of which a
tax liability is computed under this article. In the case of a
return made under this article, or regulations of the tax
commissioner, for a fractional part of a year, the term "taxable
year" means the period for which such return is made.
(15) "Taxpayer" means any person subject to any tax imposed by
(16) "This code" means the code of West Virginia, one thousand
nine hundred thirty-one, as amended.
(18) "Withholding agent" means any person required by law to
deduct and withhold any tax imposed by this article or under
regulations promulgated by the tax commissioner.
(1) "Barrel of oil" means forty-two U.S. gallons of two
hundred thirty-one cubic inches of liquid at a standard temperature
of sixty degrees Fahrenheit.
(2) "Coal" means and includes any material composed
predominantly of hydrocarbons in a solid state.
(3) "Cubic foot of gas" means the volume of gas contained in
one cubic foot at a standard pressure base of fourteen point
seventy-three pounds per square inch (absolute) and a standard temperature of sixty degrees Fahrenheit.
(4) "Economic interest" for the purpose of this article is
synonymous with the economic interest ownership required by Section
611 of the Internal Revenue Code in effect on the thirty-first day
of December, one thousand nine hundred eighty-five, entitling the
taxpayer to a depletion deduction for income tax purposes:
Provided, That a person who only receives an arm's length royalty
shall not be considered as having an economic interest.
(5) "Extraction of ores or minerals from the ground" includes
extraction by mine owners or operators of ores or minerals from the
waste or residue of prior mining only when such extraction is sold.
(6) "Gross value" in the case of natural resources means the
market value of the natural resource product, in the immediate
vicinity where severed, determined after application of post
production processing generally applied by the industry to obtain
commercially marketable or usable natural resource products. For
all natural resources, "gross value" is to be reported as follows:
(A) For natural resources severed or processed (or both
severed and processed) and sold during a reporting period, gross
value is the gross proceeds received or receivable by the taxpayer.
(B) In a transaction involving related parties, gross value
shall not be less than the fair market value for natural resources
of similar grade and quality.
(C) In the absence of a sale, gross value shall be the fair
market value for natural resources of similar grade and quality.
(D) If severed natural resources are purchased for the purpose
of processing and resale, the gross value is the amount received or
receivable during the reporting period reduced by the amount paid
or payable to the taxpayer actually severing the natural resource. If natural resources are severed outside the state of West Virginia
and brought into the state of West Virginia by the taxpayer for the
purpose of processing and sale, the gross value is the amount
received or receivable during the reporting period reduced by the
fair market value of natural resources of similar grade and quality
and in the same condition immediately preceding the processing of
the natural resources in this state.
(E) If severed natural resources are purchased for the purpose
of processing and consumption, the gross value is the fair market
value of processed natural resources of similar grade and quality
reduced by the amount paid or payable to the taxpayer actually
severing the natural resource. If severed natural resources are
severed outside the state of West Virginia and brought into the
state of West Virginia by the taxpayer for the purpose of
processing and consumption, the gross value is the fair market
reduced by the fair market value of natural resources of similar
grade and quality and in the same condition immediately preceding
the processing of the natural resources.
(F) In all instances, the gross value shall be reduced by the
amount of any federal energy tax imposed upon the taxpayer after the first day of June, one thousand nine hundred ninety-three, but
shall not be reduced by any state or federal taxes, royalties,
sales commissions or any other expense.
(G) For natural gas, gross value is the value of the natural
gas at the wellhead immediately preceding transportation and
(H) For limestone or sandstone quarried or mined, gross value
is the value of such stone immediately upon severance from the
(7) "Mining" includes not merely the extraction of ores or
minerals from the ground, but also those treatment processes
necessary or incidental thereto.
(8) "Natural resources" means all forms of minerals including,
but not limited to, rock, stone, limestone, coal, shale, gravel,
sand, clay, natural gas, oil and natural gas liquids which are
contained in or on the soils or waters of this state and includes
standing timber.
(A) Oil and natural gas shall not include any conversion or
refining process; and
(B) Limestone or sandstone quarried or mined shall not include
any treatment process or transportation after the limestone or
sandstone is severed from the earth.
(10) "Related parties" means two or more persons,
organizations or businesses owned or controlled directly or indirectly by the same interests. Control exists if a contract or
lease, either written or oral, is entered into whereby one party
mines or processes natural resources owned or held by another party
and the owner or lessor participates in the severing, processing or
marketing of the natural resources or receives any value other than
an arm's length passive royalty interest. In the case of related
parties, the tax commissioner may apportion or allocate the
receipts between or among such persons, organizations or businesses
if he determines that such apportionment or allocation is necessary
to more clearly reflect gross value.
(11) "Severing" or "severed" means the physical removal of the
natural resources from the earth or waters of this state by any
means: Provided, That "severing" or "severed" shall not include
the removal of natural gas from underground storage facilities into
which the natural gas has been mechanically injected following its
initial removal from earth: Provided, however, That "severing" or
"severed" oil and natural gas shall not include any separation
process of oil or natural gas commonly employed to obtain
marketable natural resource products.
(12) "Stock" includes shares in an association, joint-stock
company or corporation.
(13) "Taxpayer" means and includes any individual,
partnership, joint venture, association, corporation, receiver,
trustee, guardian, executor, administrator, fiduciary or
representative of any kind engaged in the business of severing or processing (or both severing and processing) natural resources in
this state for sale or use. In instances where contracts (either
oral or written) are entered into whereby persons, organizations or
businesses are engaged in the business of severing or processing
(or both severing and processing) a natural resource but do not
obtain title to or do not have an economic interest therein, the
party who owns the natural resource immediately after its severance
or has an economic interest therein is the taxpayer.
(d) Specific definitions for persons providing health care
items or services. --
"Behavioral health services" means services provided for the
care and treatment of persons with mental illness, mental
retardation, developmental disabilities or alcohol or drug abuse
problems in an inpatient, residential or outpatient setting,
including, but not limited to, habilitative or rehabilitative
interventions or services and cooking, cleaning, laundry and
personal hygiene services provided for such care: Provided, That
gross receipts derived from providing behavioral health services
that are included in the provider's measure of tax under article
twenty-seven of this chapter shall not be include in that
provider's measure of tax under this article. The amendment to
this definition in the year two thousand four is intended to
clarify the intent of the Legislature as to the activities that
qualify as behavioral health services, and this clarification shall
be applied retrospectively to the effective date of the amendment to this section in which the definition of "behavioral health
services" was originally provided as enacted during the first
extraordinary session of the Legislature in the year one thousand
nine hundred ninety-three.
WVC 11 - 13 A- 3 §11-13A-3. Imposition of tax or privilege of severing coal,
limestone or sandstone, or furnishing certain
health care services, effective dates therefor;
reduction of severance rate for coal mined by
underground methods based on seam thickness.
(a) Imposition of tax. -- Upon every person exercising the
privilege of engaging or continuing within this state in the
business of severing, extracting, reducing to possession and
producing for sale, profit or commercial use coal, limestone or
sandstone, or in the business of furnishing certain health care
services, there is hereby levied and shall be collected from every
person exercising such privilege an annual privilege tax.
(b) Rate and measure of tax. -- The tax imposed in subsection
(a) of this section shall be five percent of the gross value of the
natural resource produced or the health care service provided, as
shown by the gross income derived from the sale or furnishing
thereof by the producer or the provider of the health care service,
except as otherwise provided in this article. In the case of coal,
this five percent rate of tax includes the thirty-five one
hundredths of one percent additional severance tax on coal imposed
by the state for the benefit of counties and municipalities as
provided in section six of this article.
(c) "Certain health care services" defined. -- For purposes of this section, the term "certain health care services" means, and is
limited to, behavioral health services.
(d) Tax in addition to other taxes. -- The tax imposed by this
section shall apply to all persons severing or processing (or both
severing and processing) in this state natural resources enumerated
in subsection (a) of this section and to all persons providing
certain health care services in this state as enumerated in
subsection (c) of this section and shall be in addition to all
other taxes imposed by law.
(e) Effective date. -- This section, as amended in the year
one thousand nine hundred ninety-three, shall apply to gross
proceeds derived after the thirty-first day of May of such year. The language of this section, as in effect on the first day of
January of such year, shall apply to gross proceeds derived prior
to the first day of June of such year and, with respect to such
gross proceeds, shall be fully and completely preserved.
(f) Reduction of severance tax rate. -- For tax years
beginning after the effective date of this subsection, any person
exercising the privilege of engaging within this state in the
business of severing coal for the purposes provided in subsection
(a) of this section shall be allowed a reduced rate of tax on coal
mined by underground methods in accordance with the following:
(i) For coal mined by underground methods from seams with an
average thickness of thirty-seven inches to forty-five inches, the
tax imposed in subsection (a) of this section shall be two percent
of the gross value of the coal produced. For coal mined by
underground methods from seams with an average thickness of less
than thirty-seven inches, the tax imposed in subsection (a) of this
section shall be one percent of the gross value of the coal
produced. Gross value is determined from the sale of the mined
coal by the producer. This rate of tax includes the thirty-five
one hundredths of one percent additional severance tax imposed by
the state for the benefit of counties and municipalities as
(ii) This reduced rate of tax applies to any new underground
mine producing coal after the effective date of this subsection,
from seams of less than forty-five inches in average thickness or
any existing mine that has not produced coal from seams forty-five
inches or less in thickness in the one hundred eighty days
immediately preceding the effective date of this subsection.
(iii) The seam thickness shall be based on the weighted
average isopach mapping of actual coal thickness by mine as
certified by a professional engineer.
WVC 11 - 13 A- 3 A
§11-13A-3a. Imposition of tax on privilege of severing natural
gas or oil; Tax Commissioner to develop a uniform
(a) Imposition of tax. -- For the privilege of engaging or
continuing within this state in the business of severing natural
gas or oil for sale, profit or commercial use, there is hereby
levied and shall be collected from every person exercising such
privilege an annual privilege tax: Provided, That effective for
all taxable periods beginning on or after the first day of January,
two thousand, there is an exemption from the imposition of the tax
provided in this article on the following: (1) Free natural gas
provided to any surface owner; (2) natural gas produced from any
well which produced an average of less than five thousand cubic
feet of natural gas per day during the calendar year immediately
preceding a given taxable period; (3) oil produced from any oil
well which produced an average of less than one-half barrel of oil
per day during the calendar year immediately preceding a given
taxable period; and (4) for a maximum period of ten years, all
natural gas or oil produced from any well which has not produced
marketable quantities of natural gas or oil for five consecutive
years immediately preceding the year in which a well is placed back
into production and thereafter produces marketable quantities of
natural gas or oil.
(a) of this section shall be five percent of the gross value of the natural gas or oil produced, as shown by the gross proceeds derived
from the sale thereof by the producer, except as otherwise provided
(c) Tax in addition to other taxes. -- The tax imposed by this
section shall apply to all persons severing gas or oil in this
state, and shall be in addition to all other taxes imposed by law.
(d)(1) The Legislature finds that in addition to the
production reports and financial records which must be filed by oil
and gas producers with the State Tax Commissioner in order to
comply with this section, oil and gas producers are required to
file other production reports with other agencies, including, but
not limited to, the office of oil and gas, the Public Service
Commission and county assessors. The reports required to be filed
are largely duplicative, the compiling of the information in
different formats is unnecessarily time consuming and costly, and
the filing of one report or the sharing of information by agencies
of government would reduce the cost of compliance for oil and gas
(2) On or before the first day of July, two thousand three,
the Tax Commissioner shall design a common form that may be used
for each of the reports regarding production that are required to
be filed by oil and gas producers, which form shall readily permit
a filing without financial information when such information is
unnecessary. The commissioner shall also design such forms so as
to permit filings in different formats, including, but not limited to, electronic formats.
(3) Effective the first day of July, two thousand six, this
subsection shall have no force or effect.
WVC 11 - 13 A- 3 B
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 privilege an annual
privilege tax. (b) Rate and measure of tax. -- The tax imposed in subsection
(a) of this section shall be 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: Provided, That as to
timber produced after December 31, 2006 the rate of the tax imposed
in subsection (a) of this section shall be one 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.
section shall apply to all persons severing timber in this state
and shall be in addition to all other taxes imposed by law.
(d) Elimination of tax. -- Beginning in the tax year 2010 and
continuing until the imposition of the additional tax on the
privilege of severing timber imposed by subsection (c), section
four, article thirteen-v of this chapter expires under the
authority of subsection (g), section four, article thirteen-v of
this chapter, the tax imposed by this section is discontinued. On
and after expiration of the additional tax on the privilege of severing timber imposed by subsection (c), section four, article
thirteen-v of this chapter, the tax imposed by this section
resumes, and shall apply to all persons severing timber in this
state at the rate of one 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
WVC 11 - 13 A- 3 C
§11-13A-3c. Imposition of tax on privilege of severing other
continuing within this state in the business of severing,
extracting, reducing to possession and producing for sale, profit
or commercial use any other natural resource product or product not
taxed under section three, three-a, three-b or four of this
article, there is hereby levied and shall be collected from every
person exercising this privilege an annual privilege tax.
(a) of this section shall be four percent of the gross value of the
natural resource produced, as shown by the gross proceeds derived
from the sale thereof by producer, except as otherwise provided in
this article: Provided, That beginning the first day of July, one
thousand nine hundred ninety-three, the tax imposed by this section
shall be levied and collected at the rate of four and one-half
percent, and beginning the first day of July, one thousand nine
hundred ninety-four, the tax imposed by this section shall be
levied and collected at the rate of five percent.
section shall apply to all persons severing other natural resources
in this state, and shall be in addition to all other taxes imposed
(d) Effective date. -- This section, as amended in the year
one thousand nine hundred ninety-three, shall apply to grossproceeds derived after the thirty-first day of May of such year. The language of section three of this article, as in effect on the
first day of January of such year, shall apply to gross proceeds
derived prior to the first day of June of such year and, with
respect to such gross proceeds, shall be fully and completely
WVC 11 - 13 A- 3 D
§11-13A-3d. Imposition of tax on privilege of severing coalbed
(1) That coalbed methane is underdeveloped and an
under-utilized resource within this state which, where practicable, should be captured and not be vented or wasted;
(2) The health and safety of persons engaged in coal mining is
a paramount concern to the state. The Legislature intends to
preserve coal seams for future safe mining, to facilitate the
expeditious, safe evacuation of coalbed methane from the coalbeds
of this state, and to ensure the safety of miners by encouraging
the advance removal of coalbed methane;
(3) The United States environmental protection agency's
coalbed methane outreach program encourages United States coal
mines in the United States to remove and use methane that is
otherwise wasted during mining. These projects have important
economic benefits for the mines and their local economies while
they also reduce emissions of methane; and
(4) The initial costs of development of coalbed methane wells
can be large in comparison to conventional wells and deoxygenation
and water removal increase development expenditures.
The Legislature, therefore, concludes that an incentive to
coalbed methane development should be implemented to encourage
capture of methane gas that would otherwise be vented to the
(b) Imposition of tax. -- In lieu of the annual privilege tax
imposed on the severance of natural gas or oil pursuant to section
three-a, article thirteen-a, for the privilege of engaging or
continuing within this state in the business of severing coalbed
methane for sale, profit or commercial use, there is hereby levied
and shall be collected from every person exercising such privilege
an annual privilege tax: Provided, That effective for taxable
years beginning on or after the first day of January, two thousand
one, there is an exemption from the imposition of the tax provided
for in this article for a maximum period of five years for all
coalbed methane produced from any coalbed methane well placed in
service after the first day of January, two thousand. For purposes
of this section, the terms "coalbed methane" and "coalbed methane
well" have the meaning ascribed to them in section two, article
twenty-one, chapter twenty-two of this code. The exemption from
tax provided by this section is applicable to any coalbed methane
well placed in service before the first day of January, two
thousand nine, subject to the provisions of subsection (f) of this
(c) Rate and measure of tax. -- The tax imposed on subsection
(b) of this section is five percent of the gross value of the
coalbed methane produced, as shown by the gross proceeds derived
(d) Tax in addition to other taxes. -- The tax imposed by this section applies to all persons severing coalbed methane in this
state, and is in addition to all other taxes imposed by law.
(e) Except as specifically provided in this section,
application of the provisions of this article apply to coalbed
methane in the same manner and with like effect as the provisions
apply to natural gas.
(f) Notwithstanding any other provision of this code to the
contrary, on and after the first day of January, two thousand nine,
the exemption from the tax on the privilege of severing coalbed
methane created in this section will no longer be applicable except
that the privilege tax shall not be collected on coalbed methane
produced from any coalbed methane well for the remainder of the
five-year exemption for any well that was placed in service,
including the commencement of actual drilling of the well, before
the first day of January, two thousand nine.
(g) Subject to the exceptions set forth in this section and
article thirteen-v of this chapter, on and after the first day of
January, two-thousand nine, coalbed methane and methane produced
from or by a coalbed methane well is taxable as natural gas for
purposes of the taxes imposed by this article and the taxes imposed
by article thirteen-v of this chapter.
(h) The Tax Commissioner shall promulgate emergency and
legislative rules, in accordance with the provisions of article
three, chapter twenty-nine-a of this code, as necessary to
effectuate the purposes of this article.
WVC 11 - 13 A- 3 E
§11-13A-3e. Imposition of tax on privilege of extracting and
recovering material from refuse, gob piles or
other sources of waste coal to produce coal.
(1) That some mining operations in this state process coal to
create a saleable clean coal product;
(2) That the by-product, waste or residue created from
processing coal is commonly deposited in what are known as refuse
or gob piles;
(3) That, as a result of technological developments and other
factors, the material contained in some refuse or gob piles located
in this state can be recovered and further processed to produce
saleable clean coal; and
(4) That, under the existing laws of this state, coal produced
from processing material contained in refuse, gob piles, slurry
ponds, pond fines or other sources of waste coal would be subject
to the annual privilege tax imposed on the severance of coal
pursuant to section three of this article and the minimum severance
tax imposed by section three, article twelve-b of this chapter.
Based on the findings in this subsection, the Legislature
concludes that an incentive to extracting and recovering material
contained in refuse, gob piles and other sources of waste coal
located in this state and subsequently processing, washing and
preparing this material to produce coal should be implemented to
encourage the production of this coal from refuse or gob piles located in this state.
(b) Imposition of tax. -- In lieu of: (i) The annual
privilege tax imposed on the severance of coal imposed by section
three of this article; (ii) the additional tax on severance,
extraction and production of coal imposed by section six of this
article; and (iii) the minimum severance tax imposed by section
three, article twelve-b of this chapter for the privilege of
engaging or continuing within this state in the business of
extracting and recovering material from a refuse, gob pile or other
sources of waste coal and subsequently processing, washing and
preparing this extracted or recovered material to produce coal for
collected from every person exercising that privilege an annual
privilege tax.
(c) Rate and measure of tax. -- The tax imposed in subsection
(b) of this section is two and one-half percent of the gross value
of the coal produced, as shown by the gross proceeds derived from
the sale of the coal by the producer, except as otherwise provided
section applies to all persons extracting and recovering material
from refuse, gob piles or other sources of waste coal located in
this state and subsequently processing, washing and preparing this
extracted and recovered material to produce coal for sale, profit
or commercial use and shall be in addition to all other taxes imposed by law: Provided, That the tax imposed by this section is
in lieu of the tax imposed by sections three and six of this
article and section three, article twelve-b of this chapter.
(e) Exemption. -- The tax imposed in subsection (b) of this
section shall not apply to any electrical power cogeneration plant
burning material from its wholly owned refuse or gob pile.
(f) Dedication of taxes collected, creation of fund. --
(1) There is continued in the state treasury a fund entitled
the "waste coal-producing counties fund" which shall be a revolving
fund that shall carry over each fiscal year. The taxes collected
under the provisions of this section shall be deposited in the
waste coal-producing counties fund and are dedicated to the county
commissions of the counties in which the refuse, gob piles or other
sources of waste coal are located from which taxable waste coal
production has occurred during the year for use in economic
development and infrastructure improvements. The economic and
infrastructure projects are to be in accordance with the rules
promulgated under the synthetic fuel-producing counties grant fund
program, as determined by the director of the West Virginia
development office: Provided, That the county shall use ninety
percent of the funds for infrastructure improvement and ten percent
of the funds for economic development.
(2) Moneys in the waste coal-producing counties fund shall be
distributed by the state treasurer annually to the counties in
which the refuse, gob piles or other sources of waste coal are located, from which taxable waste coal production has occurred
during the year, in an amount prorated to the number of tons of
taxable waste coal produced in each county during the preceding
year. The distribution shall be paid separate from any other
payment of moneys to the county by the treasurer. For purposes of
this subdivision, the term "ton" means two thousand pounds.
(3) The office of chief inspector shall annually determine
that counties' expenditures of moneys distributed under this
section is in compliance with the requirements of this section.
WVC 11 - 13 A- 4 §11-13A-4. Treatment processes as production.
(a) Treatment processes considered as mining. -- The following
treatment processes (and the treatment processes necessary or
incidental thereto) when applied by the mine owner or operator to
natural resources mined in this state shall be considered as mining
and part of the privilege taxed under this article.
(1) Coal. -- In the case of coal: Cleaning, breaking, sizing,
dust allaying, treating to prevent freezing and loading for
(2) Minerals customarily sold in crude form. -- In the case of
other minerals which are customarily sold in crude form: Sorting,
concentrating, sintering and substantially equivalent processes to
bring them to shipping grade and form, and loading for shipment.
(3) Minerals not customarily sold in crude form. -- In the
case of other minerals which are not customarily sold in the form
of the crude mineral products: Crushing, grinding and
beneficiation by concentration (gravity, flotation, amalgamation or
electrostatic or magnetic), cyanidation, leaching, crystallization,
precipitation (but not including electrolytic deposition, roasting,
thermal or electric smelting or refining), or substantially
equivalent processes or combinations of processes used in the
separation or extraction of the product or products from the ore or
the mineral or minerals from other material from the mine or other
natural deposit.
(4) Oil shale. -- In the case of oil shale: Extraction fromthe ground, crushing, loading into the retort and retorting, but
not hydrogenation, refining or any other process subsequent to
retorting; and
(5) Other. -- Any other treatment process provided for in a
legislative rule prescribed by the tax commissioner which, with
respect to the particular ore or mineral, is not inconsistent with
the preceding subdivisions of this subsection (a).
(b) Treatment processes not considered as mining. -- Unless
such processes are otherwise provided for in subsection (a), or are
necessary or incidental to processes provided for in subsection
(a), the following treatment processes shall not be considered as
"mining": Electrolytic deposition, roasting, calcining, thermal or
electric smelting, refining, polishing, fine pulverization,
blending with other materials, treatment effecting a chemical
change, thermal action and molding or shaping.
(c) Treatment processes considered part of production of oil,
natural gas and natural gas liquids. -- The privileges of severing
and producing oil and natural gas shall not include any conversion
or refining process.
(d) Timber production privilege. -- The privilege of severing
and producing timber shall end once the tree is severed and
delimbed.
(e) Limestone and sandstone quarried or mined production
privilege. -- The privilege of severing and producing limestone and
sandstone by quarrying or mining shall end once the limestone orsandstone is severed from the earth.
WVC 11 - 13 A- 5 §11-13A-5. Oil and gas operating unit.
(a) For purposes of the production of oil classification and
the production of natural gas classification, as set forth in this
article, multiple co-owners of oil or natural gas, in place,
lessees thereof, or others being vested with title and ownership to
part or all of the oil and gas, as personal property, immediately
after its severance, extraction, reduction to possession and
production (except royalty recipients in kind) shall be deemed to
be a "group or combination acting as a unit" and one "person" as
defined in section two of this article, if not otherwise defined
therein, whenever engaged in the producing of oil or natural gas
through common use (by joint or separately executed contracts) of
the same independent contract driller or operator's services; and
notwithstanding provisions of private contracts for separate
deposit of gross receipts in separate members' accounts or for
members of such group or combination to take in kind any
proportionate part of such natural resources.
(b) Lessees, sublessees or other denominated lessees are
considered to be producers of all of the oil or natural gas
produced, regardless of any payment, in kind, to lessors,
sublessors or other denominated lessors of a part of such natural
resources as rents or royalties.
WVC 11 - 13 A- 5 A
§11-13A-5a. Dedication of ten percent of oil and gas severance tax
for benefit of counties and municipalities;
distribution of major portion of such dedicated tax to oil and gas producing counties; distribution of minor portion of such dedicated tax to all counties and municipalities; reports; rules; special funds in
the office of state treasurer; methods and formulae for distribution of such dedicated tax; expenditure of funds by counties and municipalities for public purposes; and requiring special county and municipal
budgets and reports thereon.
(a) Effective the first day of July, one thousand nine hundred
ninety-six, five percent of the tax attributable to the severance
of oil and gas imposed by section three-a of this article is hereby
dedicated for the use and benefit of counties and municipalities
within this state and shall be distributed to the counties and
municipalities as provided in this section. Effective the first
day of July, one thousand nine hundred ninety-seven, and
thereafter, ten percent of the tax attributable to the severance of
oil and gas imposed by section three-a of this article is hereby
municipalities as provided in this section.
(b) Seventy-five percent of this dedicated tax shall be
distributed by the state treasurer in the manner specified in thissection to the various counties of this state in which the oil and
gas upon which this additional tax is imposed was located at the
time it was removed from the ground. Those counties are referred
to in this section as the "oil and gas producing counties". The
remaining twenty-five percent of the net proceeds of this
additional tax on oil and gas shall be distributed among all the
counties and municipalities of this state in the manner specified
(c) The tax commissioner is hereby granted plenary power and
authority to promulgate reasonable rules requiring the furnishing
by oil and gas producers of such additional information as may be
necessary to compute the allocation required under the provisions
of subsection (f) of this section. The tax commissioner is also
hereby granted plenary power and authority to promulgate such other
reasonable rules as may be necessary to implement the provisions of
(d) In order to provide a procedure for the distribution of
seventy-five percent of the dedicated tax on oil and gas to the oil
and gas producing counties, the special fund known as the oil and
gas county revenue fund established in state treasurer's office by
chapter two hundred forty-two, acts of the Legislature, regular
session, one thousand nine hundred ninety-five, as amended and
reenacted in the subsequent act of the Legislature, is hereby
continued. In order to provide a procedure for the distribution of
the remaining twenty-five percent of the dedicated tax on oil and
gas to all counties and municipalities of the state, without regardto oil and gas having been produced in those counties or
municipalities, the special fund known as the all counties and
municipalities revenue fund established in state treasurer's office
by chapter two hundred forty-two, acts of the Legislature, regular
redesignated as the "all counties and municipalities oil and gas
revenue fund" and is hereby continued.
Seventy-five percent of the dedicated tax on oil and gas shall
be deposited in the oil and gas county revenue fund and
twenty-five percent of the dedicated tax on oil and gas shall be
deposited in the all counties and municipalities oil and gas
revenue fund, from time to time, as the proceeds are received by
the tax commissioner. The moneys in the funds shall be distributed
to the respective counties and municipalities entitled to the
moneys in the manner set forth in subsection (e) of this section.
(e) The moneys in the oil and gas county revenue fund and the
moneys in the all counties and municipalities oil and gas revenue
fund shall be allocated among and distributed annually to the
counties and municipalities entitled to the moneys by the state
treasurer in the manner specified in this section. On or before
each distribution date, the state treasurer shall determine the
total amount of moneys in each fund which will be available for
distribution to the respective counties and municipalities entitled
to the moneys on that distribution date. The amount to which anoil and gas producing county is entitled from the oil and gas
county revenue fund shall be determined in accordance with
subsection (f) of this section, and the amount to which every
county and municipality shall be entitled from the all counties and
municipalities oil and gas revenue fund shall be determined in
accordance with subsection (g) of this section. After determining,
as set forth in subsections (f) and (g) of this section, the amount
each county and municipality is entitled to receive from the
respective fund or funds, a warrant of the state auditor for the
sum due to the county or municipality shall issue and a check drawn
thereon making payment of the sum shall thereafter be distributed
to the county or municipality.
(f) The amount to which an oil and gas producing county is
entitled from the oil and gas county revenue fund shall be
(1) In the case of moneys derived from tax on the severance of
(A) Dividing the total amount of moneys in the fund derived
from tax on the severance of gas then available for distribution by
the total volume of cubic feet of gas extracted in this state
(B) Multiplying the quotient thus obtained by the number of
cubic feet of gas taken from the ground in the county during the
preceding year; and
(2) In the case of moneys derived from tax on the severance ofoil:
from tax on the severance of oil then available for distribution by
the total number of barrels of oil extracted in this state during
the preceding year; and
barrels of oil taken from the ground in the county during the
(g) The amount to which each county and municipality is
entitled from the all counties and municipalities oil and gas
revenue fund shall be determined in accordance with the provisions
of this subsection. For purposes of this subsection "population"
means the population as determined by the most recent decennial
census taken under the authority of the United States:
(1) The treasurer shall first apportion the total amount of
moneys available in the all counties and municipalities oil and gas
revenue fund by multiplying the total amount in the fund by the
percentage which the population of each county bears to the total
population of the state. The amount thus apportioned for each
county is the county's "base share".
(2) Each county's base share shall then be subdivided into two
portions. One portion is determined by multiplying the base share
by that percentage which the total population of all unincorporated
areas within the county bears to the total population of the
county, and the other portion is determined by multiplying the baseshare by that percentage which the total population of all
municipalities within the county bears to the total population of
the county. The former portion shall be paid to the county and the
latter portion shall be the "municipalities' portion" of the
county's base share. The percentage of the latter portion to which
each municipality in the county is entitled shall be determined by
multiplying the total of the latter portion by the percentage which
the population of each municipality within the county bears to the
total population of all municipalities within the county.
(h) Moneys distributed to any county or municipality under the
provisions of this section, from either or both special funds,
shall be deposited in the county or municipal general fund and may
be expended by the county commission or governing body of the
municipality for such purposes as the county commission or
governing body shall determine to be in the best interest of its
respective county or municipality: Provided, That in counties with
population in excess of two hundred thousand, at least seventy-five
percent of the funds received from the oil and gas county revenue
fund shall be apportioned to and expended within the oil and gas
producing area or areas of the county, the oil and gas producing
areas of each county to be determined generally by the state tax
commissioner: Provided, however, That the moneys distributed to
any county or municipality under the provisions of this section
shall not be budgeted for personal services in an amount to exceed
one fourth of the total amount of the moneys.
(i) On or before the twenty-eighth day of March, one thousand
nine hundred ninety-seven, and each twenty-eighth day of March
thereafter, each county commission or governing body of a
municipality receiving any such moneys shall submit to the tax
commissioner on forms provided by the tax commissioner a special
budget, detailing how the moneys are to be spent during the
subsequent fiscal year. The budget shall be followed in expending
the moneys unless a subsequent budget is approved by the state tax
commissioner. All unexpended balances remaining in the county or
municipality general fund at the close of a fiscal year shall
remain in the general fund and may be expended by the county or
municipality without restriction.
(j) On or before the fifteenth day of December, one thousand
nine hundred ninety-six, and each fifteenth day of December
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 budgets, created by subsection (i) of this section,
for all county commissions and municipalities as of the fifteenth
day of July of the current year.
(k) The state tax commissioner shall retain for the benefit of
the state from the dedicated tax attributable to the severance of
oil and gas the amount of thirty-five thousand dollars annually as
a fee for the administration of the additional tax by the tax
WVC 11 - 13 A- 5 B
§11-13A-5b. Creation of West Virginia Future Fund; legislative
intent; calculation of deposits from excess
severance tax revenues; permissible uses of
investment income and limitations on expenditures;
(a) There is hereby created in the State Treasury a special
revenue account, designated the West Virginia Future Fund, which is
an interest-bearing account and may be invested by the West
Virginia Investment Management Board in the manner permitted by the
provisions of article six, chapter twelve of this code, with the
investment income to be credited to the fund and deposited in the
special revenue account.
(b) The Legislature declares its intention to use the fund as
a means of conserving a portion of the state's revenue derived from
the increased revenue proceeds received by the state as a result of
any mineral production as well as other funding sources as the
Legislature may designate in order to meet future needs. The
principal of the fund shall remain inviolate and no portion of the
principal may be appropriated, expended or encumbered by the
Legislature or any official of the state. Only the investment
income of this fund may be appropriated and expended: Provided,
That no more than the average net investment return for the
immediately preceding five fiscal years may be appropriated or
expended in any one fiscal year.
contrary, for the fiscal year beginning July 1, 2014, and each year
thereafter, the secretary of revenue shall cause to be deposited in
this fund three percent of the annual severance tax revenue which
would otherwise be deposited into the General Revenue Fund which is
attributable to the severance of coal, limestone, sandstone,
natural gas and oil and collected and received pursuant to the
provisions of sections three and three-a, article thirteen-a,
chapter eleven of this code: Provided, That these deposits shall
only be made during fiscal years within which the balance of the
Revenue Shortfall Reserve Fund equals or exceeds thirteen percent
of the state's General Revenue Fund budget for the fiscal year just
ended as determined within sixty days of the end of that prior
fiscal year as provided by subsection (b), section twenty, article
two, chapter eleven-b of this code: Provided, however, That these
deposits shall not be made in any fiscal year in which the
Governor's General Revenue Fund estimate relies on transfers from
the Revenue Shortfall Reserve Fund: Provided further, That these
deposits shall not be made in any fiscal year for which mid-year
spending reductions, hiring freezes, mid-year decreases in
appropriations or transfers from the Revenue Shortfall Reserve Fund
are necessitated due to revenue shortfalls or would be necessitated
if the deposits were to be made: And provided further, That amounts
that may be deposited into the fund in error or found later to be subject to these limitations shall be redeposited into the General
Revenue Fund. The Legislature may, by general appropriation or by
designation of other funding sources, deposit into the fund
additional moneys as it considers appropriate.
(d) In order to maximize the value of the fund, no money from
the fund may be expended or appropriated until fiscal year 2020 and
thereafter the Legislature may appropriate, subject to the
limitations provided in this section, from the fund solely for
enhancing education and workforce development; economic development
and diversification; infrastructure improvements; and tax relief
measures for the benefit of the citizens and businesses of the
(1) "Economic development and diversification" means fostering
economic growth and development in the state, including commercial,
industrial, community, cultural or historical improvements; or
preservation or other proper purposes.
(2) "Infrastructure improvements" means fostering
infrastructure improvements including, but not limited to, post-
mining land use, water or wastewater facilities or a part thereof,
storm water systems, steam, gas, telephone and telecommunications,
broadband development, electric lines and installations, roads,
bridges, railroad spurs, drainage and flood control facilities,
industrial park development or buildings that promote job creation and retention.
(3) "Tax relief" means reducing the tax responsibility of
citizens and businesses located in the State of West Virginia,
including but not limited to increasing the Homestead Exemption and
reducing or eliminating the ad valorem property tax on inventory
and equipment held for commercial or industrial use.
WVC 11 - 13 A- 6 §11-13A-6. Additional tax on the severance, extraction and production of coal; dedication of additional tax for benefit of counties and municipalities; distribution of major portion of such additional tax to coal-producing counties; distribution of minor portion of such additional tax to all counties and municipalities; reports; rules; special funds in office of state treasurer; method and formulas for distribution of such additional tax; expenditure of funds by counties and
municipalities for public purposes; special funds in counties and municipalities; and requiring
special county and municipal budgets and reports
(a) Additional coal severance tax. -- Upon every person
exercising the privilege of engaging or continuing within this
state in the business of severing coal, or preparing coal (or both
severing and preparing coal), for sale, profit or commercial use,
there is hereby imposed an additional severance tax, the amount of
which shall be equal to the value of the coal severed or prepared
(or both severed and prepared), against which the tax imposed by
section three of this article is measured as shown by the gross
proceeds derived from the sale of the coal by the producer,
multiplied by thirty-five one hundredths of one percent. The taximposed by this subsection is in addition to the tax imposed by
section three of this article, and this additional tax is referred
to in this section as the "additional tax on coal".
(b) This additional tax on coal is imposed pursuant to the
provisions of section six-a, article ten of the West Virginia
constitution. Seventy-five percent of the net proceeds of this
additional tax on coal shall be distributed by the state treasurer
in the manner specified in this section to the various counties of
this state in which the coal upon which this additional tax is
imposed was located at the time it was severed from the ground. Those counties are referred to in this section as the
"coal-producing counties". The remaining twenty-five percent of
the net proceeds of this additional tax on coal shall be
distributed among all the counties and municipalities of this state
in the manner specified in this section.
(c) The additional tax on coal shall be due and payable,
reported and remitted as elsewhere provided in this article for the
tax imposed by section three of this article, and all of the
enforcement and other provisions of this article shall apply to the
additional tax. In addition to the reports and other information
required under the provisions of this article and the tonnage
reports required to be filed under the provisions of section
seventy-seven, article two, chapter twenty-two-a of this code, the
tax commissioner is hereby granted plenary power and authority to
promulgate reasonable rules requiring the furnishing by producersof such additional information as may be necessary to compute the
allocation required under the provisions of subsection (f) of this
section. The tax commissioner is also hereby granted plenary power
and authority to promulgate such other reasonable rules as may be
necessary to implement the provisions of this section: Provided,
That notwithstanding any language contained in this code to the
contrary, the gross amount of additional tax on coal collected
under this article shall be paid over and distributed without the
application of any credits against the tax imposed by this section.
seventy-five percent of the net proceeds of the additional tax on
coal to the coal-producing counties, the special fund known as the
"county coal revenue fund" established in the state treasurer's
office by chapter one hundred sixty-two, acts of the Legislature,
regular session, one thousand nine hundred eighty-five, as amended
and reenacted in subsequent acts of the Legislature, is hereby
the remaining twenty-five percent of the net proceeds of the
additional tax on coal to all counties and municipalities of the
state, without regard to coal having been produced therein, the
special fund known as the "all counties and municipalities revenue
fund" established in the state treasurer's office by chapter one
hundred sixty-two, acts of the Legislature, regular session, one
thousand nine hundred eighty-five, as amended and reenacted in
subsequent acts of the Legislature, is hereby redesignated as the"all counties and municipalities coal revenue fund" and is hereby
Seventy-five percent of the net proceeds of such additional
tax on coal shall be deposited in the county coal revenue fund and
twenty-five percent of the net proceeds shall be deposited in the
all counties and municipalities coal revenue fund, from time to
time, as the proceeds are received by the tax commissioner. The
moneys in the funds shall be distributed to the respective counties
and municipalities entitled to the moneys in the manner set forth
in subsection (e) of this section.
(e) The moneys in the county coal revenue fund and the moneys
in the all counties and municipalities coal revenue fund shall be
allocated among and distributed quarterly to the counties and
municipalities entitled to the moneys by the state treasurer in the
manner specified in this section. On or before each distribution
date, the state treasurer shall determine the total amount of
moneys in each fund which will be available for distribution to the
respective counties and municipalities entitled to the moneys on
that distribution date. The amount to which a coal-producing
county is entitled from the county coal revenue fund shall be
determined in accordance with subsection (f) of this section, and
the amount to which every county and municipality is entitled from
the all counties and municipalities coal revenue fund shall be
determined in accordance with subsection (g) of this section. After determining as set forth in subsection (f) and subsection (g)of this section the amount each county and municipality is entitled
to receive from the respective fund or funds, a warrant of the
state auditor for the sum due to each county or municipality shall
issue and a check drawn thereon making payment of such amount shall
thereafter be distributed to each such county or municipality.
(f) The amount to which a coal-producing county is entitled
from the county coal revenue fund shall be determined by: (1)
Dividing the total amount of moneys in the fund then available for
distribution by the total number of tons of coal mined in this
state during the preceding quarter; and (2) multiplying the
quotient thus obtained by the number of tons of coal removed from
the ground in the county during the preceding quarter.
entitled from the all counties and municipalities coal revenue fund
shall be determined in accordance with the provisions of this
subsection. For purposes of this subsection "population" means the
population as determined by the most recent decennial census taken
under the authority of the United States:
moneys available in the all counties and municipalities coal
(2) Each county's base share shall then be subdivided into twoportions. One portion is determined by multiplying the base share
county, and the other portion is determined by multiplying the base
share by that percentage which the total population of all
latter portion is the "municipalities' portion" of the county's
base share. The percentage of the latter portion to which each
municipality in the county is entitled shall be determined by
(h) All counties and municipalities shall create a "coal
severance tax revenue fund" which shall be the depository for
moneys distributed to any county or municipality under the
provisions of this section, from either or both special funds.
Moneys in the coal severance tax revenue fund, in compliance with
subsection (i) of this section, may be expended by the county
commission or governing body of the municipality for such public
purposes as the county commission or governing body shall determine
to be in the best interest of the people of its respective county
or municipality: Provided, That in counties with population in
excess of two hundred thousand, at least seventy-five percent of
the funds received from the county coal revenue fund shall beapportioned to, and expended within the coal-producing area or
areas of the county, said coal-producing areas of each county to be
determined generally by the state tax commissioner: Provided,
however, That the coal severance tax revenue fund moneys shall not
be budgeted for personal services in an amount to exceed one fourth
of the total funds available in such fund.
nine hundred eighty-six, and each twenty-eighth day of March
municipality receiving such revenue shall submit to the tax
budget, detailing how such revenue is to be spent during the
subsequent fiscal year. Such budget shall be followed in expending
the revenue unless a subsequent budget is approved by the state tax
commissioner. All unexpended balances remaining in coal severance
tax revenue fund at the close of a fiscal year shall be
reappropriated to the budget of the county commission or governing
body for the subsequent fiscal year. The reappropriation shall be
entered as an amendment to the new budget and submitted to the tax
commissioner on or before the fifteenth day of July of the current
budget year.
nine hundred eighty-six, and each fifteenth day of December
Senate and the clerk of the House of Delegates a consolidatedreport of the special budgets, created by subsection (i) of this
section, for all county commissions and municipalities as of the
fifteenth day of July of the current year.
the state from the additional taxes on coal collected the amount of
thirty-five thousand dollars annually as a fee for the
administration of such additional tax by the tax commissioner.
WVC 11 - 13 A- 6 A
§11-13A-6a. Reallocation and dedication of percentage of
severance tax for benefit of coal-producing
counties; phase-in period; permissible uses of
distributed revenues; duties of State Treasurer
and State Tax Commissioner; audits; rulemaking.
(a) The purpose of this section is to provide for the
reallocation and dedication of a portion of the tax attributable to
the severance of coal imposed by section three of this article for
the use and benefit of the various counties of this state in which
the coal upon which that tax is imposed was located at the time it
was severed from the ground. Those counties are referred to in
this section as the coal-producing counties or, in the singular, as
a coal-producing county.
(b)(1) Effective July 1, 2012, one percent of the tax
attributable to the severance of coal imposed by section three of
this article is dedicated and shall be distributed for the use and
benefit of the coal-producing counties as provided in this section. Effective July 1, 2013, two percent of the tax attributable to the
severance of coal imposed by section three of this article is
dedicated and shall be distributed for the use and benefit of the
coal-producing counties as provided in this section. Effective
July 1, 2014, three percent of the tax attributable to the
coal-producing counties as provided in this section. Effective July 1, 2015, four percent of the tax attributable to the severance
of coal imposed by section three of this article is dedicated and
shall be distributed for the use and benefit of the coal-producing
counties as provided in this section. Effective July 1, 2016, and
thereafter, five percent of the tax attributable to the severance
counties as provided in this section.
(2) In no fiscal year may the proceeds dedicated in
subdivision (1) of this subsection exceed the sum of $20 million.
(3) For purposes of this subsection, the tax attributable to
the severance of coal imposed by section three of this article does
not include the thirty-five one hundredths of one percent
additional severance tax on coal imposed by the state for the
benefit of counties and municipalities as provided in section six
(c) The amounts of the tax dedicated in subsection (b) of this
section shall be deposited, from time to time, into a special fund
known as the Coal County Reallocated Severance Tax Fund, which is
hereby established in the State Treasury, as the proceeds are
received by the State Tax Commissioner. (d) The net proceeds of the deposits made into the Coal County
Reallocated Severance Tax Fund shall be allocated among and
distributed quarterly to the coal-producing counties by the State
Treasurer in the manner specified in this section. On or before each distribution date, the State Treasurer shall determine the
total amount of moneys that will be available for distribution to
the respective counties entitled to the moneys on that distribution
date. The amount to which a coal-producing county is entitled from
the Coal County Reallocated Severance Tax Fund shall be determined
in accordance with subsection (e) of this section. After
determining as set forth in subsection (e) of this section the
amount each coal-producing county is entitled to receive from the
fund, a warrant of the State Auditor for the sum due to each coal-
producing county shall be issued and a check drawn thereon making
payment of that amount shall thereafter be distributed to each such
coal-producing county by hand, mail commercial delivery or
(e) The amount to which a coal-producing county is entitled
from the Coal County Reallocated Severance Tax Fund shall be
(1) Dividing the total amount of moneys in the fund then
available for distribution by the total number of tons of coal
mined in this state during the preceding quarter; and
(2) Multiplying the quotient thus obtained by the number of
tons of coal removed from the ground in the county during the
(f)(1) No distribution made to a county under this section may
be deposited into the county's general revenue fund. The county
commission of each county receiving a distribution under this section shall establish a special account to be known as the "(Name
of County) Coal County Reallocated Severance Tax Fund" into which
all distributions made to that county under this section shall be
(2) Moneys in the county's coal county reallocated severance
tax fund shall be expended by the county commission solely for
economic development projects and infrastructure projects.
(A) "Economic development project" means a project in the
state which is likely to foster economic growth and development in
the area in which the project is developed for commercial,
industrial, community improvement or preservation or other proper
(B) "Infrastructure project" means a project in the state
which is likely to foster infrastructure improvements including,
but not limited to, post-mining land use, any water or wastewater
facilities or any part thereof, storm water systems, steam, gas,
telephone and telecommunications, broadband development, electric
lines and installations, roads, bridges, railroad spurs, drainage
and flood control facilities, industrial park development or
buildings that promote job creation and retention.
(4) A county commission may not expend any of the funds
available in its coal county reallocated severance tax fund for
personal services, for the costs of issuing bonds, or for the
payment of bond debt service, and shall direct the total funds available in its coal county reallocated severance tax fund to
project development, which may include the costs of architectural
and engineering plans, site assessments, site remediation,
specifications and surveys, and any other expenses necessary or
incidental to determining the feasibility or practicability of any
economic development project or infrastructure project.
(g) On or before December 31, 2013, and December 1 of each
year thereafter, the county commission of each county receiving a
distribution of funds under this section shall deliver to the Joint
Committee on Government and Finance a written report setting forth
the specific projects for which those funds were expended during
the next preceding fiscal year, a detailed account of those
expenditures, and a showing that the expenditures were made for the
purposes required by this section.
(h) An audit of any funds distributed under this section may
be authorized at any time by the Joint Committee on Government and
Finance to be conducted by the Legislative Auditor at no cost to
the county commission or county commissions audited.
(i) The State Tax Commissioner shall propose for promulgation
of this code for the administration of the provisions of this
section, and is authorized to promulgate emergency rules for those
purposes pursuant to that article.
WVC 11 - 13 A- 7 §11-13A-7. Accounting periods and methods of accounting.
(a) General rule. -- For purposes of the taxes imposed by this
article, a taxpayer's taxable year shall be the same as the
taxpayer's taxable year for federal income tax purposes. If
taxpayer has no taxable year for federal income tax purposes, then
the calendar year shall be taxpayer's taxable year under this
(b) Change of taxable year. -- If a taxpayer's taxable year is
changed for federal income tax purposes, taxpayer's taxable year
for purposes of this article shall be similarly changed. The
taxpayer shall provide a copy of the authorization for such change
from the Internal Revenue Service, with taxpayer's annual return
for the taxable year filed under this article.
(1) Same as federal. -- A taxpayer's method of accounting
under this article shall be the same as the taxpayer's method of
accounting for federal income tax purposes. In the absence of any
method of accounting for federal income tax purposes, the accrual
method of accounting shall be used, unless the tax commissioner, in
writing, consents to the use of another method. Accrual basis
taxpayers may deduct bad debts only in the year to which they
relate, and accrual basis health care providers may not deduct bad
debts attributable to services rendered before the first day of
June, one thousand nine hundred ninety-three.
(2) Change of accounting methods. -- If a taxpayer's method ofaccounting is changed for federal income tax purposes, the
taxpayer's method of accounting for purposes of this article shall
similarly be changed. The taxpayer shall provide a copy of the
authorization for such change from the Internal Revenue Service
with its annual return for the taxable year filed under this
(d) Adjustments. -- In computing a taxpayer's liability for
tax for any taxable year under a method of accounting different
from the method under which the taxpayer's liability for tax under
this article for the previous year was computed, there shall be
taken into account those adjustments which are determined, under
regulations prescribed by the tax commissioner, to be necessary
solely by reason of the change in order to prevent amounts from
being duplicated or omitted.
WVC 11 - 13 A- 8 §11-13A-8. Time for filing annual returns and other documents.
On or before the expiration of one month after the end of the
taxable year, every taxpayer subject to a tax imposed by this
article shall make and file an annual return for the entire taxable
year showing such information as the tax commissioner may require
and computing the amount of taxes due under this article for the
taxable year. Returns made on the basis of a calendar year shall
be filed on or before the thirty-first day of January following the
close of the calendar year. Returns made on the basis of a fiscal
year shall be filed on or before the last day of the first month
following the close of the fiscal year.
WVC 11 - 13 A- 9 §11-13A-9. Periodic installment payments of taxes imposed by
sections three-a, three-b and three-c of this
article; exceptions.
(a) General rule. -- Except as provided in subsection (b) of
this section, taxes levied under section three-a, three-b or
three-c of this article are due and payable in periodic
(1) Tax of fifty dollars or less per month. -- If a person's
annual tax liability under this article is reasonably expected to
be fifty dollars or less per month, no installment payments of tax
are required under this section during that taxable year.
(2) Tax of more than one thousand dollars per month. -- For
taxpayers whose estimated tax liability under this article exceeds
one thousand dollars per month, the tax is due and payable in
monthly installments on or before the last day of the month
following the month in which the tax accrued: Provided, That the
installment payment otherwise due under this subdivision on or
before the thirtieth day of June each year shall be remitted to the
tax commissioner on or before the fifteenth day of June each year:
(A) Each taxpayer shall, on or before the last day of each
month, make out an estimate of the tax for which the taxpayer is
liable for the preceding month, sign the estimate and mail it
together with a remittance, in the form prescribed by the tax
commissioner, of the amount of tax due to the office of the tax
commissioner: Provided, That the installment payment otherwise due under this paragraph on or before the thirtieth day of June each
year shall be remitted to the tax commissioner on or before the
fifteenth day of June.
(B) In estimating the amount of tax due for each month, the
taxpayer may deduct one twelfth of any applicable tax credits
allowable for the taxable year, and one twelfth of any annual
exemption allowed for that year.
(3) Tax of one thousand dollars per month or less. -- For
taxpayers whose estimated tax liability under this article is one
thousand dollars per month or less, the tax is due and payable in
quarterly installments on or before the last day of the month
following the quarter in which the tax accrued:
(A) Each taxpayer shall, on or before the last day of the
fourth, seventh and tenth months of the taxable year, make out an
estimate of the tax for which the taxpayer is liable for the
preceding quarter, sign the same and mail it together with a
remittance, in the form prescribed by the tax commissioner, of the
amount of tax due to the office of the tax commissioner.
(B) In estimating the amount of tax due for each quarter, the
taxpayer may deduct one fourth of any applicable tax credits
allowable for the taxable year, and one fourth of any annual
(b) Exceptions. -- (1) Notwithstanding the provisions of
subsection (a) of this section, the tax commissioner, if he or she
considers it necessary to ensure payment of the tax, may require the return and payment under this section for periods of shorter
duration than those prescribed in subsection (a) of this section.
(2) Notwithstanding the provisions of subsection (a) of this
section, taxpayers remitting tax on the privilege of severing
timber may deduct the annual tax credit allowed in section ten of
this article only on the annual return filed for any taxable year
beginning on or after the first day of July, one thousand nine
hundred ninety-eight. These taxpayers may not deduct any portion
of the annual tax credit when they determine the amount of periodic
installment payments of timber severance tax due during their
WVC 11 - 13 A- 9 A
§11-13A-9a. Periodic installment payments of tax imposed by
section three of this article.
(a) General rule. -- Taxes levied under section three of this
article shall be due and payable in periodic installments as
(1) If a person's annual liability under this article can
reasonably be expected to be fifty dollars or less per month, no
installment payments of tax are required under this section during
that taxable year.
(2) If a person's annual tax liability under section three of
this article can reasonably be expected to exceed fifty dollars per
month, the tax imposed by said section shall be due and payable in
installment payment otherwise due on or before the thirtieth day of
June each year shall be remitted to the tax commissioner on or
before the fifteenth day of June each year.
(A) Each such taxpayer shall, on or before the last day of
each month, make out an estimate of the tax for which the taxpayer
is liable for the preceding month, sign the same and mail it
commissioner: Provided, That the installment payment otherwise due
under this paragraph on or before the thirtieth day of June each
year shall be remitted to the tax commissioner on or before thefifteenth day of June, beginning the fifteenth day of June, one
allowable for the taxable year and one twelfth of any annual
exemption allowed for such year.
(b) Exception. -- Notwithstanding the provisions of subsection
(a) of this section, the tax commissioner, if he deems it necessary
to ensure payment of the tax, may require the return and payment
under this section for periods of shorter duration than those
prescribed in said subsection.
WVC 11 - 13 A- 10 §11-13A-10. Paying tax; annual tax credit.
Every taxpayer subject to any tax imposed under this article
shall be allowed one annual credit of five hundred dollars against
the taxes due under this article, to be applied at the rate of
forty-one dollars and sixty-seven cents per month for each month
the taxpayer was engaged in business in this state during the
taxable year exercising a privilege taxable under this article. Persons providing health care items or services who become subject
to the tax imposed by section three of this article beginning the
first day of June, one thousand nine hundred ninety-three, shall be
allowed a proportional credit under this section based on the
number of months in their tax year that begin on or after the first
day of June, one thousand nine hundred ninety-three.
WVC 11 - 13 A- 10 A
§11-13A-10a. Tax credit for business investment and jobs expansion; industrial expansion and
revitalization; eligible research and
development projects; coal loading facilities.
by this article for the taxable year, the amount determined under
articles thirteen-c, thirteen-d and thirteen-e of this chapter
relating respectively to:
(2) The tax credit for industrial expansion and revitalization
and eligible research and development projects; and
(b) The tax commissioner shall prescribe such regulations as
he deems necessary to carry out the purposes of this section and
articles thirteen-c, thirteen-d and thirteen-e of this chapter.
(c) This provision shall take effect on the first day of July,
one thousand nine hundred eighty-seven.
WVC 11 - 13 A- 11 §11-13A-11. Extension of time for filing returns.
The tax commissioner may, upon written request received on or
prior to the due date of the annual return or any periodic
estimate, grant a reasonable extension of time for filing any
return or other document required by this article, upon such terms
as he may by regulation prescribe, or by contract require, if good
cause satisfactory to the tax commissioner is provided by the
WVC 11 - 13 A- 12 §11-13A-12. Extension of time for paying tax.
(a) Amount determined on return. -- The tax commissioner may
extend the time for payment of the amount of the tax shown, or
required to be shown, on any return required by this article (or
any periodic installment payments), for a reasonable period not to
exceed six months from the date fixed for payment thereof.
(b) Amount determined as deficiency. -- Under regulations
prescribed by the tax commissioner, he may extend the time for the
payment of the amount determined as a deficiency of the taxes
imposed by this article for a period not to exceed eighteen months
from the date fixed for payment of the deficiency. In exceptional
cases, a further period of time not to exceed twelve months may be
granted. An extension under this subsection (b) may be granted
only where it is shown to the satisfaction of the tax commissioner
that payment of a deficiency upon the date fixed for the payment
thereof will result in undue hardship to the taxpayer.
(c) No extension for certain deficiencies. -- No extension
shall be granted under this section for any deficiency if the
deficiency is due to negligence, to intentional disregard of rules
and regulations, or to fraud with intent to evade tax.
WVC 11 - 13 A- 13 §11-13A-13. Place for filing returns or other documents. Tax returns, statements, or other documents, or copies
thereof, required by this article or by regulations shall be filed
with the tax commissioner by delivery, in person or by mail, to his
office in Charleston, West Virginia: Provided, That the tax
commissioner may, by regulation, prescribe the place for filing
such returns, statements, or other documents, or copies thereof.
WVC 11 - 13 A- 14 §11-13A-14. Time and place for paying tax shown on returns.
(a) General rule. -- The person required to make the annual
return required by this article shall, without assessment or notice
and demand from the tax commissioner, pay such tax at the time and
place fixed for filing the return (determined without regard to any
extension of time for filing the return).
(b) Date fixed for payment of tax. -- The date fixed for
payment of the taxes imposed by this article shall be deemed to be
a reference to the last day fixed for such payment (determined
without regard to any extension of time for paying the tax).
(c) Terms of extension. -- Any extension of time for payment
of tax under this section may be granted upon such terms as the tax
commissioner may, by regulation, prescribe or by contract require.
WVC 11 - 13 A- 15 §11-13A-15. Signing of returns and other documents.
(a) General. -- Any return, statement or other document
required to be made under the provisions of this article shall be
signed in accordance with instructions or regulations prescribed by
the tax commissioner.
(b) Signing of corporation returns. -- The return of a
corporation shall be signed by the president, vice president,
treasurer, assistant treasurer, chief accounting officer or any
other officer duly authorized so to act. In the case of a return
made for a corporation by a fiduciary, such fiduciary shall sign
the return. The fact that an individual's name is signed on the
return shall be prima facie evidence that such individual is
authorized to sign the return on behalf of the corporation.
(c) Signing of partnership returns. -- The return of a
partnership shall be signed by any one of the partners. The fact
that a partner's name is signed on the return shall be prima facie
evidence that such partner is authorized to sign the return on
(d) Signature presumed authentic. -- The fact that an
individual's name is signed to a return, statement, or other
document shall be prima facie evidence for all purposes that the
return, statement or other document was actually signed by him.
(e) Verification of returns. -- Except as otherwise provided
by the tax commissioner, any return, declaration or other document
required to be made under this article shall contain or be verifiedby a written declaration that it is made under the penalties of
WVC 11 - 13 A- 16 §11-13A-16. Bond of taxpayer may be required. (a) Whenever it is deemed necessary to ensure compliance with
this article, the tax commissioner may require any taxpayer to post
a cash or corporate surety bond.
(b) The amount of the bond shall be fixed by the tax
commissioner but, except as provided in subsection (c) of this
section, shall not be greater than three times the average
quarterly liability of taxpayers filing returns for quarterly
periods, five times the average monthly liability of taxpayers
required to file returns for monthly periods, or two times the
average periodic liability of taxpayers permitted or required to
file returns for other than monthly or quarterly periods.
section, no bond required under this section shall be less than
(d) The amount of the bond may be increased or decreased by
the tax commissioner at any time subject to the limitations
(e) The tax commissioner may bring an action for a restraining
order or a temporary or permanent injunction to restrain or enjoin
the operation of a taxpayer's business until the bond is posted and
any delinquent tax, including applicable interest and additions to
tax has been paid. Such action may be brought in the circuit court
of Kanawha County or in the circuit court of any county having
WVC 11 - 13 A- 16 A
§11-13A-16a. Nonresident person severing West Virginia timber
owned by the person at time of severance required
to notify tax commissioner prior to severance and
prepay severance tax or post bond.
(a) Business registration certificate required. -- Every
nonresident person who owns or purchases standing West Virginia
timber who either directly, or indirectly through the activities of
others, severs that timber shall apply to the tax commissioner for
a business registration certificate as provided in article twelve
of this chapter, before beginning to do business in this state,
whether or not the person has a permanent place of business in this
(b) "Nonresident person" defined. -- The term "nonresident
person" means a "person" or "company" as defined in section three
of this article that, if an individual, is a nonresident of this
state for purposes of the tax imposed by article twenty-one of this
chapter and, if any other person, does not have its commercial
domicile in this state, or during the three months preceding the
date the application for business registration certificate is filed
with the tax commissioner did not have a permanent office in this
state for the conduct of timbering operations in this state or any
other permanent place of business in this state for the conduct of
timbering operations as that term is defined in section three,
article one-b, chapter nineteen of this code.
(c) Notice of contract. -- Every nonresident person who severs West Virginia timber, either directly or through the activity of
others, which that person owns, in whole or in part, at the time
that it is severed, shall give the tax commissioner written notice
of the nonresident person's intent to sever the West Virginia
timber identified in the notice. This notice shall be given no
earlier than ninety days before the timbering operation begins and
no later than thirty days before the timbering operation begins. The notification shall include all of the information required by
section six, article one-b, chapter nineteen of this code, the
estimated gross value of the timber described in the notice that
will be severed and any other information the tax commissioner may
require: Provided, That the tax commissioner may accept as the
notification required by this section, a true copy of the notice
the nonresident person gave under section six, article eleven-b,
chapter nineteen of this code to the director of forestry, the
will be severed and any additional information the tax commissioner
(d) Prepayment of severance tax. -- If the nonresident person
owns, in whole or in part, the timber at the time that it is
severed, the nonresident person shall, at the time the notice
required by subsection (c) of this section is given to the tax
commissioner, pay to the tax commissioner four percent of the
estimated gross value of the timber to be severed that is described
in the notice: Provided, That the estimated gross value shall not be less than the actual price paid or to be paid for the stumpage. The tax commissioner shall deposit this amount in a revolving
account in the treasurer's office to be known as the "Forestry Tax
Fund" pending completion of severance of the timber identified in
the notice given under subsection (c) of this section, the filing
of all required tax returns and payment of all timber severance
taxes due under this article attributable to severance of the
timber described in the notice given under subsection (c) of this
section, including any additions to tax, penalties and interest
imposed for failure to timely pay the severance taxes. Within
thirty days after the timber identified in the notice is severed,
the nonresident person shall file with the tax commissioner a
report reconciling the amount of prepaid severance tax with the
amount of severance taxes actually due on the gross value of the
timber at the point where the privilege of severing timber ends. If this report shows that additional timber severance taxes are
due, that amount shall be paid when the report is filed with the
tax commissioner. If the report shows that the amount of timber
severance taxes prepaid exceeded the amount actually due, the tax
commissioner shall refund the difference.
(e) Surety bond. -- In lieu of the prepayment of timber
severance tax required by subsection (d) of this section, the
nonresident person may furnish to the tax commissioner a corporate
surety bond in an amount equal to four percent of the estimated
gross value of the timber to be severed that is described in the notice: Provided, That the estimated gross value shall not be less
than the actual price paid or to be paid for the stumpage, to
guarantee timely payment of the taxes due under this article that
may be attributable to the timber described in the notice given
under subsection (c) of this section. The form of the bond shall
be approved by the tax commissioner. The surety shall be qualified
to do business in this state. The bond shall be conditioned that
the nonresident person shall pay all timber severance taxes due
under this article attributable to severance of the timber
described in the notice given under subsection (c) of this section,
including any additions to tax, penalties or interest that may be
imposed due to any failure of the nonresident person to pay those
taxes as they become due.
(f) Conditions for surety. -- Any surety on a bond furnished
under subsection (e) of this section shall be qualified to do
business in this state. The surety shall be relieved, released and
discharged from all liability accruing on the bond after the
expiration of sixty days from the date the tax commissioner
receives the written request of the surety to be discharged. The
written request for discharge may be filed with the tax
commissioner by personal service or by certified mail, postage
prepaid, addressed to the tax commissioner at his or her office in
Charleston, West Virginia. A request for discharge shall not
relieve, release or discharge the surety from liability already
accrued, or which shall accrue before expiration of the sixty-day period. Whenever any surety seeks discharge as provided in this
subsection, it is the duty of the principal of the bond to supply
the tax commissioner with another corporate surety bond.
(g) Penalty for noncompliance. -- (1) A nonresident person who
fails to comply, in whole or in part, with the requirements of this
section shall forfeit the license issued to that person under
section four, article one-b, chapter nineteen of this code for a
period of one year for the first offense and for a period of two
years for each subsequent violation of this section. When the tax
commissioner determines that a nonresident person is failing to
comply, in whole or in part, with the requirements of this section,
the commissioner shall certify those facts to the director of
forestry. Upon the facts certified by the tax commissioner, or
upon facts gathered by the director, demonstrating failure of the
nonresident person to comply, in whole or in part, with the
requirements of this section the director shall then issue an order
notifying the nonresident person that the license issued under
section four, article one-b, chapter nineteen of this code has been
forfeited. A forfeiture order may be appealed as provided in
article one-b, chapter nineteen of this code. In addition, the
nonresident person shall pay a money penalty equal to fifty percent
of the timber severance tax that should have been paid that was not
timely paid. This amount shall be in addition to the amount of
timber severance taxes not timely paid plus interest and applicable
additions to tax. This penalty shall be collected by the tax commissioner in the same manner as taxes are collected under this
(2) If a nonresident person underestimates the amount of
timber severance taxes that must be prepaid under subsection (d) of
this section by more than twenty-five percent, the nonresident
person shall pay a money penalty equal to fifty percent of the
timber severance tax that should have been prepaid that was not
prepaid or guaranteed by the surety bond given under subsection (e)
of this section. This amount shall be in addition to the amount of
additions to tax. This penalty shall be collected by the tax
commissioner in the same manner as taxes are collected under this
(h) Effective date. -- The provisions of this section apply to
timber severed by a nonresident person on or after the first day of
July, one thousand nine hundred ninety-eight.
WVC 11 - 13 A- 17 §11-13A-17. Collection of tax; agreement for processor to pay tax
due from severor.
(a) General. -- In the case of natural resources, other than
natural gas, where the tax commissioner finds that it would
facilitate and expedite the collection of the taxes imposed under
this article, the tax commissioner may authorize the taxpayer
processing the natural resource to report and pay the tax which
would be due from the taxpayer severing the natural resources. The
agreement shall be in such form as the tax commissioner may
prescribe. The agreement must be signed: By the owners, if the
taxpayers are natural persons; in the case of a partnership or
association, by a partner or member; in the case of a corporation,
by an executive officer or some person specifically authorized by
the corporation to sign the application. The agreement may be
terminated by any party to the agreement upon giving thirty days'
written notice to the other parties to the agreement: Provided,
That the tax commissioner may terminate the agreement immediately
upon written notice to the other parties when either the taxpayer
processing the natural resource or the taxpayer severing the
natural resource fails to comply with the terms of the agreement.
(A) Where the person severing (or both severing and
processing) the natural gas will sell the gas to the ultimate
(B) Where the tax commissioner determines that the collection
of taxes due under this article would be accomplished in a more
efficient and effective manner through the severor, or severor and
processor, remitting the taxes; the first person to purchase the
natural gas after it has been severed, or in the event that the
natural gas has been severed and processed before the first sale,
the first person to purchase the natural gas after it has been
severed and processed, shall be liable for the collection of the
taxes imposed by this article. He shall collect the taxes imposed
from the person severing (or severing and processing) the natural
gas, and he shall remit the taxes to the tax commissioner. In
those cases where the person severing (or severing and processing)
the natural gas sells the gas to the ultimate consumer, the person
so severing (or severing and processing) the natural gas shall be
liable for the taxes imposed by this article. In those cases where
the tax commissioner determines that the collection of the taxes
due under this article from the severance (or severance and
processing) of natural gas would be accomplished in a more
efficient and effective manner through the severor (or severor and
processor) remitting the taxes, the tax commissioner shall set out
his determination in writing, stating his reasons for so finding,
and so advise the severor (or severor and processor) at least
fifteen days in advance of the first reporting period for which
such action would be effective.
(2) On or before the last day of the month following eachtaxable calendar month, each person first purchasing natural gas as
described in subdivision (1) above, shall report purchases of
natural gas during the taxable month, showing the quantities of gas
purchased, the price paid, the date of purchase, and any other
information deemed necessary by the tax commissioner for the
administration of the tax imposed by this article, and shall pay
the amount of tax due, on forms prescribed by the tax commissioner.
(3) On or before the last day of the month following each
taxable calendar month, each person severing (or severing and
processing) natural gas, shall report the sales of natural gas,
showing the name and address of the person to whom sold, the
quantity of gas sold, the date of sale, and the sales price on
forms prescribed by the tax commissioner.
WVC 11 - 13 A- 18 §11-13A-18. Records.
(a) General. -- Every taxpayer liable for reporting or paying
tax under this article shall keep records, receipts, invoices and
other pertinent papers in the form required by the tax
(b) Period of retention. -- Every taxpayer shall keep the
records for not less than three years after the annual return is
filed under this article, unless the tax commissioner in writing
authorizes their earlier destruction. An extension of time for
making an assessment automatically extends the time period for
keeping the records for all years subject to audit covered in the
agreement for extension of time.
(c) Special rule for purchasers of standing timber or of logs.
-- In addition to the records required by subsection (a) of this
section, every person purchasing standing timber, logs or wood
products sawn or chipped in conjunction with a timber harvesting
operation in this state delivered after the thirtieth day of June,
one thousand nine hundred ninety-eight, shall obtain from the
person from whom the standing timber, logs or wood products sawn or
chipped in conjunction with a timbering harvest operation are
purchased a true copy of the seller's then current business
registration certificate issued under article twelve of this
chapter or a copy of federal form 1099 for the year of the
purchase. When the seller is a person not required by this chapter
to have a business registration certificate, the purchaser shall obtain an affidavit from the seller: (1) Stating that the seller
does not have a business registration certificate and that the
seller is not required by this chapter to have a business
registration certificate; (2) listing the seller's social security
number or federal employer identification number; and (3) listing
the seller's current mailing address. The tax commissioner may
develop a form for this affidavit.
WVC 11 - 13 A- 19 §11-13A-19. General procedure and administration.
Each and every provision of the "West Virginia Tax Procedure
and Administration Act" set forth in article ten of this chapter
shall apply to the taxes imposed by this article, except as
otherwise expressly provided in this article, with like effect as
if said act were applicable only to the taxes imposed by this
article and were set forth in extenso in this article.
WVC 11 - 13 A- 20 §11-13A-20. Crimes and penalties.
Each and every provision of the "West Virginia Tax Crimes and
Penalties Act" set forth in article nine of this chapter shall
apply to the taxes imposed by this article with like effect as if
said act were applicable only to the taxes imposed by this article
and were set forth in extenso in this article.
WVC 11 - 13 A- 20 A
11-13A-20a. Dedication of tax.
(a) The amount of taxes collected under this article from
providers of health care items or services, including any interest,
additions to tax and penalties collected under article ten of this
chapter, less the amount of allowable refunds and any interest
payable with respect to such refunds, shall be deposited into the
special revenue fund created in the State Treasurer's Office and
known as the Medicaid State Share Fund. Said fund shall have
separate accounting for those health care providers as set forth in
articles four-b and four-c, chapter nine of this code.
section, for the remainder of fiscal year 1993 and for each
succeeding fiscal year, no expenditures from taxes collected from
providers of health care items or services are authorized except in
accordance with appropriations by the Legislature.
(c) The amount of taxes on the privilege of severing timber
collected under section three-b of this article, including any
interest, additions to tax and penalties collected under article
ten of this chapter, less the amount of allowable refunds and any
interest payable with respect to such refunds, shall be paid into
a special revenue account in the State Treasury to be appropriated
by the Legislature for purposes of the Division of Forestry.
(d) Notwithstanding any other provision of this code to the
contrary, beginning January 1, 2009, there is hereby dedicated an
annual amount not to exceed $4 million from annual collections of
the tax imposed by section three-d of this article to be deposited
into the West Virginia Infrastructure Fund, created in section nine, article fifteen-a, chapter thirty-one of this code.
(e) Beginning with the fiscal year ending June 30, 2009, and
each fiscal year thereafter, the Tax Commissioner shall pay from
the taxes imposed in section three-d of this article, on October 1,
of each year, to the county economic development entities, as this
term is defined in this subsection, or county commissions as
provided in subsections (f) through (h) of this section, an amount
in the aggregate not to exceed $4 million per fiscal year: Provided, That on July 1, 2012, the Tax Commissioner shall deposit
the taxes imposed in section three-d of this article into a special
revenue fund, which is hereby created in the State Treasurer's
Office and known as the Coalbed Methane Gas Distribution Fund:
Provided, however, That such deposit of taxes shall not exceed in
the aggregate $4 million per fiscal year and moneys therein shall
be distributed by the State Treasurer pursuant to this section. Prior to making any such payment the commissioner shall deduct the
amount of refunds lawfully paid and administrative costs authorized
by this code. All moneys distributed to the West Virginia
Infrastructure Fund pursuant to this section prior to July 1, 2011,
shall be returned to the Tax Commissioner and distributed to the
county economic development entities, as this term is defined in
this subsection, or county commissions as provided in this section. For purposes of this section, the term "county economic development
entity" refers to a county economic development authority
established pursuant to article twelve, chapter seven of this code
or if a county does not have a county economic development
authority established pursuant to article twelve, chapter seven of this code, an entity designated by resolution of the county
commission of the county as the lead entity for economic
development activities for the purpose of encouraging economic
development in the county which entity may be, but is not limited
to being, redevelopment authorities created pursuant to article
eighteen, chapter sixteen of this code; county economic development
corporations; regional economic development councils, corporations
(f) Notwithstanding any provision of this article to the
contrary, prior to the deposit of the proceeds of the tax on
coalbed methane with each, county economic development entity or
county commission pursuant to subsection (e) of this section, the
Tax Commissioner shall undertake the following calculations:
(1) Seventy-five percent of the moneys to be deposited shall
be provisionally allocated for the various counties of this state
in which the coalbed methane was produced; and
(2) The remaining twenty-five percent of the moneys to be
deposited shall be provisionally allocated to the various counties
of this state in which no coalbed methane was produced for projects
in accordance with subsection (h) of this section.
(3) Moneys shall be provisionally allocated to each coalbed
methane producing county in direct proportion to the amount of tax
revenues derived from coalbed methane production in the county.
(4) Moneys shall be provisionally allocated to each coalbed
methane nonproducing county equally.
(A) If, for any year, a coalbed methane producing county's share of money provisionally allocated to that county is computed
to be an amount that is less than the amount provisionally
allocated to each of the coalbed methane nonproducing counties,
then for purposes of the computations set forth in this subsection,
that coalbed methane producing county shall be redesignated a
coalbed methane nonproducing county. The money that has been
provisionally allocated to that coalbed methane producing county
out of the seventy-five percent portion specified in subdivision
(1) of this subsection shall be subtracted out of the seventy-five
percent portion specified in that subdivision and added to the
twenty-five percent portion specified in subdivision (2) of this
(B) When the adjustment specified in paragraph (A), of this
subdivision has been made for each coalbed methane producing county
that has been redesignated as a coalbed methane nonproducing
county, then the Tax Department shall finalize the calculations of
the amounts to be made available for distribution to the respective
county economic development entity or county commission of the
coalbed methane producing counties that have not been redesignated
as coalbed methane nonproducing counties under paragraph (A) of
this subdivision as follows: The amount remaining in the
provisional seventy-five percent portion specified in subdivision
(1) of this subsection, as adjusted in accordance with paragraph
(A) of this subdivision, shall be allocated, in direct proportion
to the amount that tax revenues derived from coalbed methane
production in each such county not redesignated as a coalbed
methane nonproducing county bears to the total amount of tax revenues derived from coalbed methane production in all coalbed
methane producing counties that have not been redesignated as a
coalbed methane nonproducing county.
(C) The Tax Commissioner shall then finalize the calculation
of the total amount in the twenty-five percent portion specified in
subdivision (2) of this subsection, as adjusted in accordance with
paragraph (A) of this subdivision equally among the coalbed methane
nonproducing counties.
(D) The Tax Commissioner, upon completing the calculation of
the total amount of tax to be distributed to all coalbed methane
producing counties and to all coalbed methane nonproducing
counties, shall deposit an amount equal to the amount so calculated
in the Coalbed Methane Gas Distribution Fund, subject to the
limitations set forth in this section.
(g) In no case may the total amount distributed in any fiscal
year to the aggregate of all coalbed methane producing counties and
all coalbed methane nonproducing counties calculated by the Tax
Commissioner exceed the total amount of tax on coalbed methane
authorized to be remitted to the county economic development
entities and county commissions pursuant to subsection (e) of this
(h) Distribution of coalbed methane severance tax to county
economic development entities or county commissions is subject to
(1) If the amount determined pursuant to subsections (f) and
(g) of this section for a county is more than $10,000, the State
Treasurer shall distribute the amount determined for that county to the county economic development entity. The State Treasurer is
hereby authorized to distribute accumulated but undistributed
moneys from fiscal years 2009, 2010, 2011 and 2012 to each county
economic development entity.
(2) Each county economic development entity shall use such
funds for economic development projects and infrastructure
which is likely to foster infrastructure improvements and covers
post mining land use, water or wastewater facilities, stormwater
systems, steam, gas, telephone and telecommunications, broadband
development, electric lines and installations, roads, bridges,
railroad spurs, drainage and flood control facilities, industrial
park development, road or buildings that promote job creation and
(4) Prior to expending any coalbed methane severance tax
moneys, each county economic development entity must obtain the
approval of its respective county commission, or the county
commission or commissions representing the county or counties where
the economic development or infrastructure project will be situate
if the county economic development entity is regional and encompasses more than one county, in writing for the purpose of
such expenditure.
(5) A county commission or county economic development entity
may not use funds distributed to it pursuant to subsections (e),
(f), (g) and (h) of this section for the purposes of paying wages
to any employee of the county or any employee of a county economic
development entity.
(6) If the amount determined pursuant to subsections (f) and
(g) of this section for a county is $10,000 or less, the State
Treasurer shall distribute the amount determined for that county to
the county commission. The county commission may then use the
funds to offset its regional jail costs, costs of any community
corrections programs in which it participates, expenses of a
volunteer fire department that provides service within its county
or expenses of any library that provides services within its
(i) On or before December 1, 2013, and December 1 of each year
thereafter, the county economic development entity as defined in
this section or county commission receiving a distribution of funds
under this section shall deliver to the Joint Committee on
Government and Finance a written report setting forth the specific
projects for which those funds were expended during the next
preceding fiscal year, a detailed account of those expenditures and
a showing that the expenditures were made for the purposes required
(j) An audit of any funds distributed under this section may
be authorized at any time by the Joint Committee on Government and Finance to be conducted by the Legislative Auditor at no cost to
the county economic development entity or county commission
WVC 11 - 13 A- 21 §11-13A-21. Severability. If any provision of this article or the application thereof
shall for any reason be adjudged by any court of competent
WVC 11 - 13 A- 22 §11-13A-22. Termination of exemption.
(a) On and after July 1, 2013, the exemption set forth in
subdivision (4), subsection (a), section three-a of this article is
void and of no force or effect with respect only to horizontally
drilled wells. However, if a well for which the producer
established entitlement to that exemption on or before June 30,
2013, the exemption from tax continues for natural gas or oil
produced from that well for the remainder of the ten-year period
for which the exemption was originally applicable.
(b) "Horizontally drilled well" means any well that is drilled
using a "horizontal drilling" method as that term is defined in
subdivision (5), subsection (b), section four, article six-a,
chapter twenty-two of this code.
(c) Pursuant to section five-p, article ten of this chapter,
termination of the exemption set forth in subdivision (4),
subsection (a), section three-a of this article on and after July
1, 2013, is subject to the controlling internal effective date of
this section and is not subject to the alternative effective date
provisions of section five-p, article ten of this chapter.
WVC 11 - 13 A- 23 §11-13A-23.
WVC 11 - 13 A- 24 §11-13A-24.
WVC 11 - 13 A- 25 §11-13A-25. Effective date.
Amendments to this article made by this act of the Legislature
shall take effect the first day of June, one thousand nine hundred
11-13A-20a. Dedication of tax; authorization of the development
office to promulgate rules.
contrary, beginning January 1, 2009, there is hereby dedicated an annual amount not to exceed $4 million from annual collections of
into the West Virginia Infrastructure Fund, created in section
nine, article fifteen-a, chapter thirty-one of this code.
of each year, to the respective county economic development
authorities or county commissions as provided in subsections (f)
through (h) of this section, an amount in the aggregate not to
exceed $4 million per fiscal year. Prior to making any such
payment the commissioner shall deduct the amount of refunds
lawfully paid and administrative costs authorized by this code. All moneys distributed to the West Virginia Infrastructure Fund
pursuant to this section prior to July 1, 2011, shall be returned
to the Tax Commissioner and distributed to the respective county
economic development authorities or county commissions as provided
coalbed methane with each county economic development authority or
be provisionally allocated for the various counties of this state in which the coalbed methane was produced; and
(A) If, for any year, a coalbed methane producing county's
share of money provisionally allocated to that county is computed
(B) When the adjustment specified in paragraph (A), subdivision (4) of this subsection has been made for each coalbed
methane producing county that has been redesignated as a coalbed
methane nonproducing county, then the Tax Department shall finalize
the calculations of the amounts to be made available for
distribution to the respective county development authority or
county commission of the coalbed methane producing counties that
have not been redesignated as coalbed methane nonproducing counties
under subdivision (4) of this subsection as follows: The amount
remaining in the provisional seventy-five percent portion specified
in subdivision (1) of this subsection, as adjusted in accordance
with paragraph (A), subdivision (4) of this subsection, shall be
allocated, in direct proportion to the amount that tax revenues
derived from coalbed methane production in each such county not
redesignated as a coalbed methane nonproducing county bears to the
total amount of tax revenues derived from coalbed methane
production in all coalbed methane producing counties that have not
been redesignated as a coalbed methane nonproducing county.
paragraph (A), subdivision (4) of this subsection equally among the
coalbed methane nonproducing counties.
all coalbed methane nonproducing counties calculated by the Tax Commissioner exceed the total amount of tax on coalbed methane
authority or county commission pursuant to subsection (e) of this
economic development authorities or county commissions is subject
to the following: (1) If the amount determined pursuant to subsections (f) and
(g) of this section for a county is more than ten thousand dollars,
the Tax Commissioner shall distribute the amount determined for
that county to the economic development authority of that county
created pursuant to article twelve, chapter seven of this code for
the purposes of encouraging economic development in the county.
(2) Each county economic development authority shall use such
funds for the following upon a finding by the county economic
development authority that the cost of such projects are reasonably
anticipated to lead to further economic development of the county: (i) The cost of preparation of land sites for any public or
private facility; or
(ii) The cost of design or construction of water, sewer and
stormwater infrastructure.
(3) Prior to expending any coalbed methane severance tax
moneys, each county economic development authority must obtain the
approval of its respective county commission in writing for the
purpose of such expenditure.
approval of the development office in writing for the purpose of
such expenditure. The Development Office shall approve all plans
for use of the moneys if such plans are within the required uses
provided in subdivision (2) of this subsection. The Director of
the State Development Office shall promulgate legislative rules in
accordance with article three, chapter twenty-nine-a of this code
in order to set forth the required documentation to be submitted to
the Development Office from the county economic development
authorities to ensure that such funds are utilized as intended by
the Legislature. The Director of the Development Office is
authorized to promulgate emergency rules to implement the
(5) A county or county economic development authority may not
use such funds for the purposes of paying wages to any employee of
the county or any employee of a county economic development
(g) of this section for a county is ten thousand dollars or less,
that county to the county commission. The county commission may
then use the funds to offset its regional jail costs, costs of any
community corrections programs in which it participates, expenses
of a volunteer fire department that provides service within its county or expenses of any library that provides services within its
WVC 11 - 13 P- 1 §11-13P-1. Legislative finding and purpose.
The Legislature finds that the retention of physicians
practicing in this state is in the public interest and promotes the
general welfare of the people of this state. The Legislature
further finds that the promotion of stable and affordable medical
malpractice liability insurance premium rates will induce retention
of physicians practicing in this state.
In order to effectively decrease the cost of medical liability
insurance premiums paid in this state on physicians' services,
there is hereby provided a tax credit for certain medical liability
insurance premiums paid.
WVC 11 - 13 P- 2 §11-13P-2. Definitions.
(a) General. - When used in this article, or in the
this section have the meanings ascribed to them by this section,
unless a different meaning is clearly required by the context in
(b) Terms defined. -
(1) "Adjusted annual medical liability premium" means
statewide average of medical liability insurance premiums by
specialty and subspecialty groups directly paid by eligible
taxpayers in those speciality and subspecialty groups during the
taxable year to cover physicians' services performed during the
year reduced by the sum of ten thousand dollars.
(2) "Eligible taxpayer" means any person subject to tax under
section sixteen, article twenty-seven of this chapter or a
physician who is a partner, member, shareholder or employee of an
eligible taxpayer.
(3) "Person" means and includes any natural person,
corporation, limited liability company, trust or partnership.
(4) "Physicians' services" means health care providers
services taxable under section sixteen, article twenty-seven of
this chapter performed in this state by physicians licensed by the state board of medicine or the state board of osteopathic medicine.
(5) "Statewide average medical liability insurance premiums"
are the average of premiums for each specialty and sub-specialty
group as determined by the state insurance commission.
WVC 11 - 13 P- 3 §11-13P-3. Eligibility for tax credits; creation of the credit.
There shall be allowed to every eligible taxpayer a credit
against the tax payable under section sixteen, article twenty-seven
of this chapter. The amount of this credit shall be determined and
applied as provided in this article.
WVC 11 - 13 P- 4 §11-13P-4. Amount of credit allowed.
The amount of annual credit allowable under this article to an
eligible taxpayer shall be equal to ten percent of the adjusted
annual medical liability insurance premium for the taxpayer's
specialty or subspecialty group or ten percent of the taxpayer's
actual annual medical liability insurance premium, whichever is
less: Provided, That no credit shall be allowed for any medical
liability insurance premium paid on behalf of an eligible taxpayer
employed by the state, its agencies or subdivisions or an eligible
taxpayer organization pursuant to coverage provided under article
twelve, chapter twenty-nine of this code.
WVC 11 - 13 P- 5 §11-13P-5. Excess credit forfeited.
If after application of the credit against tax under this
article, any credit remains for the taxable year, the amount
remaining and not used is forfeited. Unused credit may not be
carried back to any prior taxable year and shall not carry forward
to any subsequent taxable year.
WVC 11 - 13 P- 6 §11-13P-6. Application of credit; schedules; estimated taxes.
(a) The credit allowed under this article shall be applied
(b) To assert this credit against tax, the eligible taxpayer
shall prepare and file with its annual tax return filed under
article twenty-seven of this chapter, and for information purposes,
a schedule showing the amount paid for medical liability coverage
for the taxable year, the amount of credit allowed under this
article, the taxes against which the credit is being applied and
other information that the tax commissioner may require. This
annual schedule shall set forth the information and be in the form
prescribed by the tax commissioner.
(c) An eligible taxpayer may consider the amount of credit
allowed under this article when determining the eligible taxpayer's
liability under article twenty-seven of this chapter for periodic
payments of estimated tax for the taxable year, in accordance with
the procedures and requirements prescribed by the tax commissioner. The annual total tax liability and total tax credit allowed under
this article are subject to adjustment and reconciliation pursuant
to the filing of the annual schedule required by subsection (b) of
WVC 11 - 13 P- 7 §11-13P-7. Computation and application of credit.
(a) Credit resulting from premiums directly paid by persons
who pay the tax imposed by section sixteen, article twenty-seven of
this chapter. - The annual credit allowable under this article for
eligible taxpayers other than payors described in subsection (b) of
this section, shall be applied as a credit against the eligible
taxpayer's state tax liability determined under section sixteen,
article twenty-seven of this chapter, determined after application
of all other allowable credits and exemptions.
(b) Credit for premiums directly paid by partners, members or
shareholders of partnerships, limited liability companies, or
corporations for or on behalf of such organizations; application of
credit. -
(A) For purposes of this section the term "eligible taxpayer
organization" means a partnership, limited liability company, or
corporation that is an eligible taxpayer.
(B) For purposes of this section the term "payor" means a
natural person who is a partner, member, shareholder or owner, in
whole or in part, of an eligible taxpayer organization and who pays
medical liability insurance premiums for or on behalf of the
eligible taxpayer organization.
(C) Medical liability insurance premiums paid by a payor (as defined in this section) qualify for tax credit under this article,
provided that such payments are made to insure against medical
liabilities arising out of or resulting from physicians' services
provided by a physician while practicing in service to or under the
organizational identity of an eligible taxpayer organization or as
an employee of such eligible taxpayer organization where such
insurance covers the medical liability of:
(ii) one or more physicians practicing in service to or under
the organizational identity of the eligible taxpayer organization
or as an employee of the eligible taxpayer organization, or (iii) any combination thereof.
(2) Application of credit by the payor against health care
provider tax on physician's services. - The annual credit
allowable shall be applied to reduce the tax liability directly
payable by the payor under section sixteen, article twenty-seven of
this chapter, determined after application of all other allowable
credits and exemptions.
(3) Application of credit by the eligible taxpayer
organization against health care provider tax on physician's
services. - After application of this credit as provided in
subdivision (2) of this subsection, remaining annual credit shall
then be applied to reduce the tax liability directly payable by the eligible taxpayer organization under section sixteen, article
twenty-seven of this chapter, determined after application of all
other allowable credits and exemptions. (4) Apportionment among multiple eligible taxpayer
organizations. - Where a payor described in subdivision (1) of
this subsection pays medical liability insurance premiums for and
provides services to or under the organizational identity of two or
more eligible taxpayer organizations described in this section or
as an employee of two or more such eligible taxpayer organizations,
the tax credit shall, for purposes of subdivision (3) of this
subsection, be allocated among such eligible taxpayer organizations
in proportion to the medical liability insurance premiums paid
directly by the payor during the taxable year to cover physicians'
services during such year for, or on behalf of, each eligible
taxpayer organization. In no event may the total credit claimed by
all eligible taxpayers and eligible taxpayer organizations exceed
the credit which would be allowable if the payor had paid all such
medical liability insurance premiums for or on behalf of one
eligible taxpayer organization, and if all physician's services had
been performed for, or under the organizational identity of, or by
employees of, one eligible taxpayer organization.
WVC 11 - 13 P- 8 §11-13P-8. Legislative rules.
The tax commissioner shall propose for promulgation pursuant
to the provisions of article three, chapter twenty-nine-a of this
code such rules as may be necessary to carry out the purposes of
WVC 11 - 13 P- 9 §11-13P-9. Construction of article; burden of proof.
The provisions of this article shall be reasonably construed. The burden of proof is on the person claiming the credit allowed by
this article to establish by clear and convincing evidence that the
person is entitled to the amount of credit asserted for the taxable
WVC 11 - 13 P- 10 §11-13P-10. Effective date.
This article shall be effective for taxable years beginning
after the thirty-first day of December, two thousand one:
Providing, That the assertion of the credit by an eligible taxpayer
shall not be allowed prior to the first day of July, two thousand
WVC 11 - 13 P- 11 §11-13P-11. Termination of tax credit.
No credit shall be allowed under this article for any taxable
year ending after the thirty-first day of December, two thousand