This bill proposes an amendment to the Code of West Virginia, specifically 11-13A-3, to provide a severance tax exemption for thermal or steam coal sold to coal-fired power plants located within the state. The new legal language inserted into the bill states that thermal or steam coal severed after March 31, 2026, and sold for electricity generation to in-state facilities will be exempt from the severance tax imposed by this section. However, the exemption does not apply to the additional 0.35 percent severance tax that benefits counties and municipalities, meaning that the applicable severance tax rate for such coal sales would be 0.35 percent.

The intent of this legislation is to encourage the sale of thermal or steam coal to coal-fired electric generating facilities within West Virginia, ultimately aiming to provide cheaper electricity to residents of the state. By removing the severance tax for these transactions, the bill seeks to incentivize local coal production and consumption, thereby supporting the state's energy sector and its economy.

Statutes affected:
Introduced Version: 11-13A-3