Coal Severance Tax Exemption Moves Forward In Senate

A bill to exempt West Virginia coal consumed in-state from severance taxes advanced in the Senate.

The Energy, Industry and Mining Committee approved Senate Bill 168 Thursday. 

The bill, SB 168, would exempt West Virginia coal burned by West Virginia power plants from severance tax.

According to an attached fiscal note, the measure would cost the state $22 million in tax revenue each year.

The local government portion of severance tax would not be affected by the bill.

The fiscal note also warned that the bill might run into constitutional issues. A federal appeals court ruled against a similar law in Kentucky.

SB 168 now goes to the Senate Finance Committee.