W. Va. Code R. § 110-13AC-4

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-13AC-4 - Reduction of Severance Tax Rates on Thermal or Steam Coal

4.1. Effective July 1, 2019, the rate of tax imposed by W. Va. Code § 11-13A-3 on the gross value of thermal or steam coal is reduced over the next three years for a total reduction of two percent by July 1, 2021:

4.1.1. On and after July 1, 2019, the tax rate is 4.3% of the gross value of thermal or steam coal produced;

4.1.2. On and after July 1, 2020, the rate is 3.7% of the gross value of thermal or steam coal produced; and,

4.1.3. On and after July 1, 2021, the rate is 3% of the gross value of thermal or steam coal produced.

4.2. The reduced tax rate includes the .35% Severance Tax imposed for the benefit of counties and municipalities under W. Va. Code § 11-13A-6.

4.3. The severance tax attributable to thermal or steam coal is included in amounts of coal severance tax imposed under W. Va. Code § 11-13A-3 that is reallocated and dedicated for the benefit of the coal producing counties under W. Va. Code § 11-13A-6a.

4.4. The tax rates provided in Section 4.1 of this Rule do not apply to thin seam coal taxed under W. Va. Code § 11-13A-3(g) when it is sold to an electric power company. The applicable rate of tax will continue to be either 1% or 2% depending upon the thickness of the seam of coal from which the coal was produced.

4.5. Thermal and steam coal receiving the reduced rates in this section is subject to the annual minimum severance tax imposed under W. Va. Code § 11-12B-3. However, thin seam coal taxed under W. Va. Code § 11-13A-3(g) is not subject to the minimum severance tax.

W. Va. Code R. § 110-13AC-4