Bill Text: WV SB413 | 2018 | Regular Session | Introduced
Bill Title: Levying 0.5 percent severance tax on deep sand gas and future cracker plants
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2018-01-29 - To Energy, Industry and Mining [SB413 Detail]
Download: West_Virginia-2018-SB413-Introduced.html
WEST virginia legislature
2018 regular session
Introduced
Senate Bill 413
By Senators Sypolt and Smith
[Introduced January
29, 2018; Referred
to the Committee on Energy, Industry and Mining; and then to the Committee on
Finance]
A BILL to amend and reenact §11-13A-3a of the Code of West Virginia, 1931, as amended, relating to levying a 0.5 percent annual severance tax on Marcellus, Utica and all other deep sand gas; and a levying a 0.5 percent privilege tax on all future cracker plants which will be dedicated to retired public employees.
Be it enacted by the Legislature of West Virginia:
ARTICLE 13A. SEVERANCE AND BUSINESS PRIVILEGE TAX ACT.
§11-13A-3a. Imposition
of tax on privilege of severing natural gas or oil; Tax Commissioner to
develop a uniform reporting form tax on cracker plants.
(a) Imposition of tax. – For the privilege of engaging or continuing within this state in the business of:
(1) Severing
natural gas or oil for sale, profit or commercial use, there is hereby levied
and shall be collected from every person exercising such privilege an annual
privilege tax: Provided, That effective for all taxable periods
beginning on or after January 1, 2000, there is an exemption from the
imposition of the tax provided in this article on the following: (1) (A)
Free natural gas provided to any surface owner; (2) (B) natural
gas produced from any well which produced an average of less than 5,000 cubic feet
of natural gas per day during the calendar year immediately preceding a given
taxable period; (3) (C) oil produced from any oil well which
produced an average of less than one-half barrel of oil per day during the
calendar year immediately preceding a given taxable period; and (4) (D)
for a maximum period of 10 years, all natural gas or oil produced from any well
which has not produced marketable quantities of natural gas or oil for five
consecutive years immediately preceding the year in which a well is placed back
into production and thereafter produces marketable quantities of natural gas or
oil.
(2) Severing Marcellus, Utica and all other deep sand gas for sale, profit or commercial use, there is hereby levied and shall be collected from every person exercising such privilege an annual privilege tax of .5 percent which will be dedicated to retired public employees. This tax shall be effective December 31, 2018, and available for support to retired public employees.
(3) Operating a cracker plant for sale, profit or commercial use, there is hereby levied and shall be collected from every person exercising such privilege an annual privilege tax of .5 percent which will be dedicated to retired public employees. This tax shall be effective December 31, 2018, and available for support to retired public employees.
(b) Rate and measure of tax. -- The tax imposed in subdivision (1), subsection (a) of this section shall be five percent of the gross value of the natural gas or oil produced, as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided in this article.
(c) Tax in addition to other taxes. -- The tax imposed by this section shall apply to all persons severing gas or oil in this state, and shall be in addition to all other taxes imposed by law.
(d)(1) The Legislature
finds that in addition to the production reports and financial records which
must be filed by oil and gas producers with the State Tax Commissioner in order
to comply with this section, oil and gas producers are required to file other
production reports with other agencies, including, but not limited to, the
office of oil and gas, the Public Service Commission and county assessors. The
reports required to be filed are largely duplicative, the compiling of the
information in different formats is unnecessarily time consuming and costly,
and the filing of one report or the sharing of information by agencies of
government would reduce the cost of compliance for oil and gas producers.
(2) On or before July 1,
2003, the Tax Commissioner shall design a common form that may be used for each
of the reports regarding production that are required to be filed by oil and
gas producers, which form shall readily permit a filing without financial
information when such information is unnecessary. The commissioner shall also
design such forms so as to permit filings in different formats, including, but
not limited to, electronic formats.
(3) Effective July 1,
2006, this subsection shall have no force or effect
NOTE: The purpose of this bill is to levy a .5 percent annual severance tax on Marcellus, Utica and all other deep sand Gas; and a .5 percent privilege tax on all future cracker plants which will be dedicated to retired public employees.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
