This bill amends the Code of West Virginia to reduce the tax rate on the gross value of metallurgical coal produced in the state. Specifically, it establishes a new tax rate structure for metallurgical coal, which will decrease incrementally starting July 1, 2026. The tax rate will be set at 4.5% for coal severed between July 1, 2026, and June 30, 2027, then reduced to 4% for coal severed between July 1, 2027, and June 30, 2028, and finally to 3.5% for coal severed beginning July 1, 2028, and thereafter. Additionally, the bill defines metallurgical coal and clarifies that it does not include thermal or steam coal.

The bill also includes provisions for the termination of the privilege tax on limestone or sandstone, which will cease to be effective after July 1, 2019. Furthermore, it specifies that the tax imposed on health care services will expire for privileges exercised on or after July 1, 2016, while ensuring that any taxes owed prior to these expiration dates remain due. Overall, the bill aims to provide tax relief for the metallurgical coal industry while phasing out certain taxes related to limestone, sandstone, and specific health care services.

Statutes affected:
Originating in Committee: 11-13A-3
Engrossed Version: 11-13A-3