WEST VIRGINIA LEGISLATURE
2022 REGULAR SESSION
Introduced FISCAL
House Bill 4411 NOTE
BY DELEGATES HOUSEHOLDER AND CRISS
[BY REQUEST OF THE TAX AND REVENUE DEPARTMENT]
[Introduced January 26, 2022; Referred to the Committee on Energy and Manufacturing then Finance]
 Intr HB 2022R2261H 2022R2181S
1 A BILL to amend and reenact §11-12B-3 of the Code of West Virginia, 1931, as amended, relating
2 to the imposition of the minimum severance tax on coal; and making technical corrections
3 to the code.
Be it enacted by the Legislature of West Virginia:
ARTICLE 12B. MINIMUM SEVERANCE TAX ON COAL.
§11-12B-3. Imposition of tax, credit.
1 (a) Imposition of tax. – Upon every person exercising the privilege of engaging within this
2 state in severing, extracting, reducing to possession or producing coal for sale, profit or
3 commercial use, there is hereby imposed an annual minimum severance tax equal to 50¢ cents
4 per ton of coal produced by the taxpayer for sale, profit or commercial use during the taxable year:
5 Provided, That for taxable years ending after May 31, 1993, the minimum severance tax imposed
6 on coal produced by the taxpayer for sale, profit or commercial use during such taxable year shall
7 be 75¢ cents per ton, with such rate increase to apply only to tons of coal produced after May 31,
8 1993: Provided, however, That for taxable years ending after December 31, 1999, the minimum
9 severance tax on coal may not be imposed on any ton of thin seam coal produced on or after
10 April 1, 2000, on which the severance tax is imposed by the provisions of subsection (f), section
11 three, article thirteen-a of this chapter §11-13A-3 of this code.
12 (b) Credit against article thirteen-a tax the severance tax imposed under §11-13A-1 et seq.
13 of this code – A person who pays the minimum severance tax imposed by this article shall be
14 allowed a credit against the severance tax imposed on the privilege of producing coal by section
15 three, article thirteen-a of this chapter §11-13A-3 of this code, but not including the additional
16 severance tax on coal imposed by section six of article thirteen-a of this chapter §11-13A- 6 of
17 this code or, for taxable years ending after December 31, 1999, the severance tax imposed by
18 the provisions of subsection (f), section three, article thirteen-a of this chapter §11-13A-3 of this
19 code on thin seam coal produced on or after April 1, 2000. The amount of credit allowed shall be
20 equal to the liability of the taxpayer for the taxable year for payment of the minimum severance
1
 Intr HB 2022R2261H 2022R2181S
21 tax on coal imposed by this article: Provided, That the amount of credit allowed by this section
22 may not exceed the severance tax liability of the taxpayer for the taxable year determined under
23 section three of that article §11-13A-3 of this code exclusive of the additional tax on coal imposed
24 by section six of that article §11-13A-6 of this code and, for taxable years ending after December
25 31, 1999, of the severance tax imposed by the provisions of subsection (f), section three, article
26 thirteen-a of this chapter §11-13A-3 of this code on thin seam coal produced on or after April 1,
27 2000, after application of all credits to which the taxpayer may be entitled except any credit
28 allowed pursuant to chapter five-e §5E-1-1 et seq. of this code, any credit for installment payments
29 of estimated tax paid pursuant to section six of this article §11-12B-6 of this code during the
30 taxable year and any credit for overpayment of article thirteen-a tax the severance tax imposed
31 under §11-13A-1 et seq. Notwithstanding anything herein to the contrary, in no event may the
32 credit allowed under chapter five-e of this code §5E-1-1 et seq. of this code be allowed as a credit
33 against the minimum severance tax imposed by this article.
NOTE: The purpose of this bill is correct cross references that exempt thin seam coal from the minimum severance tax.
Strike-throughs indicate language that would be stricken from a heading or the present law.
and underscoring indicates new language that would be added.
2


Statutes affected:
Introduced Version: 11-12B-3