HB 5687
Relating to reducing the tax rate imposed on the gross value of metallurgical coal produced in this state
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill proposes to reduce the tax rate on metallurgical coal produced in West Virginia. Specifically, it lowers the tax rate to 4.5% for coal severed between July 1, 2026, and June 30, 2027, 4% for coal severed between July 1, 2027, and June 30, 2028, and 3.5% for coal severed beginning July 1, 2028. The bill also includes provisions related to seam thickness and the calculation of the tax rate, including an additional severance tax.
Key provisions
- Reduces the tax rate on metallurgical coal to 4.5% for coal severed between July 1, 2026, and June 30, 2027.
- Reduces the tax rate on metallurgical coal to 4% for coal severed between July 1, 2027, and June 30, 2028.
- Reduces the tax rate on metallurgical coal to 3.5% for coal severed beginning July 1, 2028.
- Defines ‘metallurgical coal’ as coal not meeting the definition of ‘thermal or steam coal’ and not classified as thin seam coal.
- Establishes reduced tax rates for coal mined by underground methods based on seam thickness.
- Includes the existing state severance tax in the calculation of the total tax rate.
- Defines ‘thermal or steam coal’ as coal sold for electricity generation.
- Specifies that the tax applies to behavioral health services.
Who is affected
- Coal producers in West Virginia
- Miners
- County and municipal governments
- The coal industry
- Healthcare providers offering behavioral health services
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