SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2014 SESSION

  • | print version

SB 338 Mineral lands; local property and license taxes.

Introduced by: Phillip P. Puckett | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Local property and license taxes on mineral lands. Permits a commissioner of the revenue to enter into agreements with taxpayers regarding the fair market value of mineral lands and deems any such agreements entered into on or after January 1, 2013, but prior to July 1, 2014, valid and enforceable. The bill states that it is declaratory of existing law. The bill is identical to HB 1202.

SUMMARY AS PASSED SENATE:

Local property and license taxes on mineral lands. Permits a commissioner of the revenue to enter into agreements with taxpayers regarding the fair market value of mineral lands and deems any such agreements entered into on or after January 1, 2013, but prior to July 1, 2014, valid and enforceable. The bill states that it is declaratory of existing law.

SUMMARY AS INTRODUCED:

Local license tax; severance of gases. Defines gross receipts for purposes of the local license tax on the severance of gases as the average price received by the licensee per thousand cubic feet (MCF) of sales of gas, adjusted for production and transportation costs, multiplied by the volume of gas per MCF severed by the licensee in the locality. However, if more than 50 percent of the volume of gas sold by the licensee during the tax reporting period is sold in other than an arm's-length transaction, then the average price received would be the New York Mercantile Exchange average price of gas per MCF for the reporting period. The bill also provides two adjustments to the average price, a deduction of $0.75 per MCF for production costs and a deduction for transportation costs equal to the lesser of $0.25 per MCF or the actual transportation costs per MCF charged to the licensee for transporting gas through Federal Energy Regulatory Commission regulated pipelines.

Under current law, gross receipts are measured by the fair market value of the gas at the time of sale, use, or shipment.