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2013 SESSION

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SB 1111 Gas severance taxes, local; validation of coal & gas severance tax & road improvement tax ordinance.

Introduced by: Ryan T. McDougle | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Local gas severance taxes. Makes technical amendments that provide a period of time in which natural gas companies may appeal a local gas severance tax assessment made on or after January 1, 2014, for license years 2014, 2013, 2012, or 2011. In 2012, the General Assembly passed legislation delaying the time period in which natural gas companies could appeal gas severance tax assessments and suspending the collection of gas severance tax assessments. The bill creates a time period in which natural gas companies may appeal such assessments. The bill is identical to HB 1771.

SUMMARY AS PASSED SENATE:

Local gas severance taxes. Makes technical amendments that provide a period of time in which natural gas companies may appeal a local gas severance tax assessment made on or after January 1, 2014, for tax years 2014, 2013, 2012, or 2011. In 2012, the General Assembly passed legislation delaying the time period in which natural gas companies could appeal gas severance tax assessments and suspending the collection of gas severance tax assessments. The bill creates a time period in which natural gas companies may appeal such assessments.

SUMMARY AS INTRODUCED:

Local gas severance taxes. Establishes fair market value for purposes of the local gas severance taxes by defining fair market value as the gross receipts from the first sale of gas to an unrelated party less reasonable, actual expenses including the costs of moving and processing the gas, depreciation, compression, marketing, overhead, maintenance, processing, transportation, property taxes, and return on investment. The bill moves the local gas severance taxes out of Chapter 37 of Title 58.1, which sets forth local license tax laws.

The one percent local gas severance taxes would be applied to the fair market value of the gas at the time it is produced at the wellhead within the county or city.