SB 76
Providing exemption from state severance tax for coal sold to coal-fired power plants located in WV
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill proposes an exemption from West Virginia’s state severance tax for coal sold to coal-fired power plants located within the state. Specifically, thermal or steam coal severed after March 31, 2026, and sold to coal-fired generating facilities physically located in West Virginia, would be exempt from the tax. This exemption does not apply to the additional severance tax levied for county and municipal benefits.
Key provisions
- Exempts thermal or steam coal sold to coal-fired power plants within West Virginia from the state severance tax.
- The exemption applies to coal severed after March 31, 2026.
- The exemption does not apply to the additional severance tax for county and municipal benefits.
- The bill addresses the tax rate for underground coal mines based on seam thickness.
- It defines ‘thermal or steam coal’ as coal sold for electricity generation.
- It defines ‘certain health care services’ as behavioral health services.
- The behavioral health severance and business privilege tax is set to expire on July 1, 2016.
- The tax on limestone and sandstone is set to cease on July 1, 2019.
Who is affected
- Coal producers
- Coal-fired power plants
- Electric utilities
- West Virginia residents (indirectly, through potential lower electricity costs)
- West Virginia counties and municipalities (through reduced tax revenue)
Notable changes
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