West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-13AC - Reduced Severance Tax Rates for Thermal or Steam Coal
Section 110-13AC-7 - Minimum amount available for dedication under W. Va. Code Section 11-13A-6a

Universal Citation: 110 WV Code of State Rules 110-13AC-7

Current through Register Vol. XLI, No. 38, September 20, 2024

7.1. Pursuant to W. Va. Code § 11-13A-6a, 5% of the tax attributable to the severance tax on coal, including thermal and steam coal, is dedicated and distributed for the use and benefit of the coal producing counties, as set forth in that Code section. Effective July 1, 2019, and thereafter, W. Va. Code § 11-13A-6a requires that the portion of the severance tax on coal imposed by § 11-13A-3 that is dedicated and distributed for the use and benefit of the coal producing counties under § 11-13A-6a shall be not less than the amount distributed for the fiscal year beginning July 1, 2018.

7.2. This provision sets forth a minimum pooled dedication amount, which is to be distributed to eligible coal-producing counties based upon the formula set forth under W. Va. Code § 11-13A-6a. While the pooled amount to be dedicated and available for distribution in any year will not fall below a minimum amount, the amount any one county may receive will still be determined based upon the formula under W. Va. Code § 11-13A-6a.

7.3. After July 1, 2019, the minimum amount available for distribution will be $11,975,088.09. This amount is based upon the amounts actually distributed on July 24, 2018, which was $3,214,709.89, on October 19, 2018, which was $2,908,186.50, on January 17, 2019, which was $3,461,091.33, and on April 22, 2019, which was $2,391,100.37.

7.4. During the fourth and final quarterly distribution made in each fiscal year, the Tax Department will determine whether the minimum amount for distribution and dedication, as set forth in subsection 7.3, should be used or whether 5% of the tax attributable to the severance tax on coal, including thermal and steam coal, dedicated under W. Va. Code § 11-13A-6a to the coal producing counties, has exceeded the minimum dedication and distribution amount:

7.4.1. For each of the first three quarterly distributions made in each fiscal year, the amount allocated to each coal producing county will be determined by dividing the total amount of money in the Coal County Reallocated Severance Tax Fund available for distribution in the quarterly period preceding the distribution by the total number of tons of coal mined in this state during the preceding quarter; and then multiplying that quotient by the number of tons of coal produced and reported for that particular county in the preceding quarter.

7.4.2. For the final quarterly distribution made in each fiscal year, the amount available for distribution to the coal producing counties shall be the greater of:
7.4.2.a. The total amount of tax remitted and placed in the Coal County Reallocated Severance Tax Fund in the preceding quarter divided by the total number of tons of coal mined in this state during the preceding quarter; and then multiplied by the number of tons of coal produced and reported for that particular county in the preceding quarter; or

7.4.2.b. The minimum total amount of distribution, which is $11,975,088.09, less the total amount of each of the three distributions for the three previous quarters, divided by the total number of tons of coal mined in this state during the preceding quarter; and then multiplied by the number of tons of coal produced and reported for that particular county in the preceding quarter.

7.4.3. However, in no fiscal year may the proceeds dedicated to the coal producing counties exceed the sum of $20 million pursuant to W. Va. Code § 11-13A-6a.

7.5. This section and the minimum amount of dedication to the coal producing counties set forth under W. Va. Code § 11-13A-6a do not apply to the dedication or distribution of the additional tax on coal for the benefit of counties and municipalities under W. Va. Code § 11-13A-6.

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