Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=HB3358%20intr.htm&yr=2005&sesstype=RS&i=3358
Timestamp: 2018-03-18 16:43:23
Document Index: 486083990

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11']

HB 3358 Text
Introduced Version House Bill 3358 History
H. B. 3358
(By Delegates Michael, Cann, Kominar, Williams, Stalnaker, Palumbo, Boggs, Houston, Proudfoot, Anderson and Evans)
H. B. 3358- "A Bill to amend and reenact §11-13A-3a, §11-13A-3b and §11-13A-3d of the Code of West Virginia, 1931, as amended, all relating to the reduction from five percent to four percent in the severance tax imposed on natural gas produced from wells placed in service on or after the first day of July, two thousand five; the reduction from three and twenty-two hundredths percent to one and twenty-two hundredths percent in the severance tax imposed on timber produced on or after the first day of December, two thousand five; reducing the period of availability of a certain five-year severance tax exemption for coalbed methane production; and reducing from five percent to four percent the severance tax on gas produced from coalbed methane wells on or after the first day of July, two thousand five.
That §11-13A-3a, §11-13A-3b and §11-13A-3d of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
(2) With respect to natural gas produced from wells placed in service on or before the thirtieth day of June, two thousand five, the tax imposed in subsection (a) of this section shall be five percent of the gross value of the natural gas produced, as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided in this article.
(3) With respect to natural gas produced from wells placed in service on or after the first day of July, two thousand five, the tax imposed in subsection (a) of this section shall be four percent of the gross value of the natural gas produced, as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided in this article.
(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 the tax imposed in subsection (a) of this section on timber produced on or after the first day of December, two thousand five, 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.
(d) 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 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 income, shall be fully and completely preserved.
(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 eleven July, two thousand five.
(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 from the sale thereof by the producer, except as otherwise provided in this article: Provided, That for tax years beginning on or after the first day of January, two thousand five, the tax imposed in subsection (b) of this section is four percent of the gross value of the coalbed methane gas produced on or after the first day of July, two thousand five, as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided in this article.
NOTE: The purpose of this bill is to reduce the severance tax rate on natural gas from five percent to four percent for wells drilled on or after July 1, 2005; to reduce the severance tax rate on timber from three and twenty-two hundredths percent to one and twenty-two hundredths percent on December 1, 2005; to remove the five-year severance tax exemption for coalbed methane wells drilled on or after July 1, 2005; and to reduce the severance tax rate on gas produced from coalbed methane wells on or after July 1, 2005, from five to four percent.