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2002 SESSION

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SB 78 Local severance taxes.

Introduced by: William C. Wampler, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Local severance taxes. Clarifies that in computing severance taxes no deductions are to be made from the fair market value component, including but not limited to, depreciation, compression, marketing fees, overhead, maintenance, transportation fees, and personal property taxes.

SUMMARY AS INTRODUCED:

Local severance taxes. Authorizes counties and cities to impose an additional local severance tax on persons engaging in the business of severing gases from the earth. A county or city may impose this additional tax at a rate not to exceed one percent of the gross receipts from the sale of gases severed within the county or city. All revenues from the additional tax shall be used for constructing new and improved water systems and lines in areas with natural water supplies that are insufficient in quality or quantity. Any county or city adopting the additional tax shall report yearly to the State Auditor of Public Accounts (i) the moneys collected from such tax, (ii) the amount deposited in its Water Projects Development Fund, and (iii) the expenditures from its Water Projects Development Fund. The bill also provides that the fair market value of gases sold outside the county or city shall be measured at the time such gases are severed from the earth at a wellhead. The bill is effective for license years beginning on or after January 1, 2002.