West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13A - Severance Tax › Section 110-13A-6 - Additional Tax for Benefit of Counties

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. Additional Tax on Production of Coal for
				Benefit of Counties. -- The additional tax on the severance, extraction and
				production of coal, dedicated for the benefit of counties and municipalities
				pursuant to W. Va. Code '11-13A-6
				has already been included in the listed rates under W. Va. Code '11-13A-3
				and Section 3 of these regulations. The Tax Department will perform all
				necessary calculations to insure that the thirty-five one hundredths of one
				percent additional tax imposed pursuant to W. Va. Code '11-13A-6
				will be segregated from the overall tax liability calculated in W. Va. Code
				'11-13A-3
				and the revenues distributed according to the provisions of W. Va. Code
				'11-13A-6.
The fund for the additional tax on production of coal for
				  benefit of counties shall be calculated based upon thirty-five one hundredths
				  of one percent of the overall severance tax liabilities of coal producers prior
				  to application of credits to which the taxpayer is entitled. The shortfall in
				  severance tax collections under W. Va. Code '11-13A-3
				  attributable to available credits shall be made up out of the State's share of
				  actual severance tax collections after application of all available credits.
				  Thus, the total additional tax on production of coal for benefit of counties
				  will be thirty-five one hundredths of one percent of the coal producers gross
				  proceeds of sale subject to severance tax. Seventy-five percent of the total
				  additional tax on production of coal shall be deposited in the "county coal
				  revenue fund" with the remaining twenty-five percent to be deposited in the
				  "all counties and municipalities fund."
When calculating the distribution of the additional tax on
				  the production of coal for benefit of counties, the credits taken by producers
				  shall not be taken into account. The share a county is entitled to from the
				  "county coal revenue fund" under W. Va. Code '11-13A-6(f)
				  shall be determined by:
1) Dividing
				the total amount in the "county coal revenue 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 such county during the preceding quarter, without regard to
				whether the mining of the coal in each county resulted in severance tax
				collections from such mining.
Pursuant to the Court Order Thirteenth Judicial Circuit in
				  Civil Action No. 88-C-660, producers of coal shall report the number of tons of
				  coal mined in each county based on the location of the coal in place prior to
				  removal. For the purpose of determining the distribution of the "county coal
				  revenue fund" to individual counties pursuant to W. Va. Code '11-13A-6(f)
				  coal shall be deemed to be severed from the seam in which it was embedded, in
				  or under such counties after April 1, 1991, without regard to where said coal
				  is brought to the surface or portaled.