West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13AC - Reduced Severance Tax Rates for Thermal or Steam Coal › Section 110-13AC-7 - Minimum amount available for dedication under W. Va. Code Section 11-13A-6a

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1.
				Pursuant to W. Va. Code §
									11-13A-6a,
				5% of the tax attributable to the severance tax on coal, including thermal and
				steam coal, is dedicated and distributed for the use and benefit of the coal
				producing counties, as set forth in that Code section. Effective July 1, 2019,
				and thereafter, W. Va. Code §
									11-13A-6a
				requires that the portion of the severance tax on coal imposed by §
									11-13A-3
				that is dedicated and distributed for the use and benefit of the coal producing
				counties under §
									11-13A-6a
				shall be not less than the amount distributed for the fiscal year beginning
				July 1, 2018.
7.2. This provision
				sets forth a minimum pooled dedication amount, which is to be distributed to
				eligible coal-producing counties based upon the formula set forth under W. Va.
				Code §
									11-13A-6a.
				While the pooled amount to be dedicated and available for distribution in any
				year will not fall below a minimum amount, the amount any one county may
				receive will still be determined based upon the formula under W. Va. Code
				§
									11-13A-6a.
7.3. After July 1, 2019, the minimum amount
				available for distribution will be $11,975,088.09. This amount is based upon
				the amounts actually distributed on July 24, 2018, which was $3,214,709.89, on
				October 19, 2018, which was $2,908,186.50, on January 17, 2019, which was
				$3,461,091.33, and on April 22, 2019, which was $2,391,100.37.
7.4. During the fourth and final quarterly
				distribution made in each fiscal year, the Tax Department will determine
				whether the minimum amount for distribution and dedication, as set forth in
				subsection 7.3, should be used or whether 5% of the tax attributable to the
				severance tax on coal, including thermal and steam coal, dedicated under W. Va.
				Code §
									11-13A-6a
				to the coal producing counties, has exceeded the minimum dedication and
				distribution amount:
7.4.1. For each of the
				first three quarterly distributions made in each fiscal year, the amount
				allocated to each coal producing county will be determined by dividing the
				total amount of money in the Coal County Reallocated Severance Tax Fund
				available for distribution in the quarterly period preceding the distribution
				by the total number of tons of coal mined in this state during the preceding
				quarter; and then multiplying that quotient by the number of tons of coal
				produced and reported for that particular county in the preceding
				quarter.
7.4.2. For the final
				quarterly distribution made in each fiscal year, the amount available for
				distribution to the coal producing counties shall be the greater of:
7.4.2.a. The total amount of tax remitted and
				placed in the Coal County Reallocated Severance Tax Fund in the preceding
				quarter divided by the total number of tons of coal mined in this state during
				the preceding quarter; and then multiplied by the number of tons of coal
				produced and reported for that particular county in the preceding quarter;
				or
7.4.2.b. The minimum total
				amount of distribution, which is $11,975,088.09, less the total amount of each
				of the three distributions for the three previous quarters, divided by the
				total number of tons of coal mined in this state during the preceding quarter;
				and then multiplied by the number of tons of coal produced and reported for
				that particular county in the preceding quarter.
7.4.3. However, in no fiscal year may the
				proceeds dedicated to the coal producing counties exceed the sum of $20 million
				pursuant to W. Va. Code §
										11-13A-6a.