The coal severance license tax portions of this article are adopted pursuant to Chapter 37.1 of Title 58.1 of the Code of Virginia (§ 58.1-3740 et seq.) and all other applicable sections of Chapters
37 and 39 of Title 58.1 of the Code of Virginia, as amended, whether or not the specific section is cited herein. Such adoption is by reference and is inclusive, including all tax collection and lien enforcement provisions provided by Virginia law. Any and all additional and applicable sections of Chapters
37, 37.1 and 39 of Title 58.1 of the Code of Virginia, as amended, including but not limited to Virginia Code § 58.1-3703.1, are hereby adopted and incorporated herein by reference. Any amendments to any applicable sections of Chapter
37, Chapter 37.1, and Chapter 39 of Title 58.1 of the Code of Virginia, as amended, shall be deemed to be incorporated into this article when they become effective as if they were separately adopted.
The following words, terms, and phrases, when used in this article
as applied to coal severance license taxes, shall have the meaning
ascribed to them in this section, unless otherwise defined by Virginia
law or where the context clearly indicates a different meaning.
COAL
Any mineral deposit composed predominantly of hydrocarbons
in a solid state.
COAL PRODUCER
The meaning set forth in Virginia Code § 58.1-3740.
SEVERING, SEVERANCE, AND SEVERED
With regard to coal, the taking of any coal from any land,
soil, slag piles, or any other source situated in the County in any
manner whatsoever.
SMALL MINE
The meaning set forth in Virginia Code § 58.1-3740.
UTILIZED or UTILIZE
To put to beneficial use for such purposes as making coke,
facility heating, power generation, machinery operation, equipment
operation, and similar uses.
The gas and oil severance license tax portions of this article are adopted pursuant to Virginia Code §§ 58.1-3712, 58.1-3712.1, 58.1-3713, 58.1-3713.3, and 58.1-3713.4 (the "Gas Severance License Tax Statutes") and all other applicable sections of Chapters
37 and 39 of Title 58.1 of the Code of Virginia, as amended, whether or not the specific section is cited herein. Such adoption is by reference and is inclusive, including all tax collection and lien enforcement provisions provided by Virginia law. Any and all additional and applicable sections of Chapters
37 and 39 of Title 58.1 of the Code of Virginia, as amended, including but not limited to Virginia Code § 58.1-3703.1, are hereby adopted and incorporated herein by reference. Any amendments to any applicable sections of Chapter
37 and Chapter 39 of Title 58.1 of the Code of Virginia, as amended, shall be deemed to be incorporated into this article when they become effective as if they were separately adopted.
The following words, terms, and phrases, when used in this article
as applied to gas and oil severance license taxes, shall have the
meaning ascribed to them in this section, unless otherwise defined
by Virginia law or where the context clearly indicates a different
meaning.
COALBED METHANE GAS
Occluded natural gas produced from coalbeds and rock strata
associated therewith.
FAIR MARKET VALUE
The following: (1) in circumstances where the gas or oil
is sold by arms-length transaction between unrelated persons, the
sale price of the gas or oil; (2) in circumstances in which the gas
or oil is (i) utilized or (ii) sold in a related party transaction
or under other circumstances that indicate that the sale is not an
arms-length transaction, the average sale price received by the person
engaged in the business of severing oil or gas from the earth in arms-length
transactions for the sale of other minerals of comparable quality
produced from a comparable area during the same time frame or, if
none, the sale price for other such minerals of comparable quality
as indicated by either appropriate regional indices or sales by other
persons engaged in the severance of similar minerals within the County
or neighboring counties.
GAS
All natural gas, including, but not limited to, coalbed methane
gas, whether hydrocarbon or non-hydrocarbon or any combination or
mixture thereof, including hydrocarbons, hydrogen sulfide, helium,
carbon dioxide, nitrogen, hydrogen, casing head gas, and all other
fluids not defined as oil herein.
GROSS RECEIPTS
Except in the case of persons engaging in the production
and operation of severing gases from the earth in connection with
coal mining, the fair market value of the severed oil or gas measured
at the time the oil or gas is utilized or sold for utilization in
the County or at the time the oil or gas is placed in transit for
shipment from the County. When such minerals are placed in transit
for shipment from the County, fair market value may be reduced by
deducting reasonable costs actually incurred by the person engaged
in the business of severing oil or gas from the earth in processing
or transporting the mineral after it is placed in transit for shipment
from the County prior to sale of the mineral. For persons engaging
in the production and operation of severing gases from the earth in
connection with coal mining, gross receipts means the fair market
value of the gas measured at the time it is utilized or sold for utilization
in the County or at the time it is placed in transit for shipment
from the County, with no deduction or allowance for costs. In all
circumstances, gross receipts includes the royalty share of the mineral(s)
severed and all minerals subject to a royalty obligation.
OIL
Natural crude oil or petroleum and other hydrocarbons, regardless
of gravity, which are produced at the well, in liquid form by ordinary
production methods and which are not the result of condensation of
gas after it leaves the underground reservoir.
OWNER
The owner of a legal or equitable interest in oil or gas
at the time of severance.
PERSON
Any individual, firm, partnership, limited liability company,
corporation, cooperative, joint venture, association, estate, trust,
business trust, trustee, trustee in bankruptcy, any person acting
under a declaration of trust, executor, administrator, partner, agent,
receiver, syndicate, assignee, or other group or combination acting
as a unit, in the plural as well as in the singular number.
PLACED IN TRANSIT FOR SHIPMENT FROM THE COUNTY
The point in distribution of the severed mineral at which
the mineral is placed in final shipment from the County with no additional
treatment, processing, compression, handling, or mechanical manipulation
to be performed within the County. Except in cases where gas is produced
at the wellhead at sufficient pressure and quality such that it is
not treated in any manner or compressed by mechanical compressor within
the County, gas is not placed in transit for shipment from the County
at the wellhead.
SEVERING, SEVERANCE, AND SEVERED
With regard to oil or gas, the taking of any oil or gas from
any land, soil, landfill, or any other formation or source situated
in the County in any manner whatsoever.
SEVERING GASES FROM THE EARTH IN CONNECTION WITH COAL MINING
Producing coalbed methane gas from wells that directly or
indirectly remove gas from: (1) units or permitted well areas which
include coal seams that have been fractured by current or previous
mining activities ("GOB wells"); and (2) units or permitted well areas
which include coal seams that have been fractured in the absence of
mining ("FRAC wells") but where all or some of the fractured coal
seams are within a permitted mine boundary or within the area projected
for mining by the twenty-year mine plan map for any coal operator.
UTILIZED or UTILIZE
With regard to oil or gas, to put to beneficial use for such
purposes as facility heating, power generation, machinery operation,
equipment operation, and similar uses. Utilized minerals include oil
or gas that is severed from the earth within the County and used by
the person engaged in the business of severing oil or gas from the
earth (or those acting on his behalf, at his direction, or with his
permission or consent) in some beneficial manner, in which case, the
severed and utilized mineral shall be deemed to have been sold for
the fair market value of such mineral.
The following words, terms, and phrases, when used in this article,
shall have the meaning ascribed to them in this section, unless otherwise
defined by Virginia law or where the context clearly indicates a different
meaning.
COMMON CARRIER
Any person involved in any phase of the transportation of
coal, oil, or gas within the County or from the County. This includes,
but is not limited to, the receiving, collection, or assembly of coal,
oil, or gas for conveyance from one mode of transportation to another
or to the same mode of transportation, as well as the actual movement
of the coal, oil, or gas in shipment.
MINING OPERATION
Any act or activity which results in the severing of coal,
oil, or gas from the earth.
PERSON
Any individual, firm, partnership, limited liability company,
corporation, cooperative, joint venture, association, estate, trust,
business trust, trustee, trustee in bankruptcy, any person acting
under a declaration of trust, executor, administrator, partner, agent,
receiver, syndicate, assignee, or other group or combination acting
as a unit, in the plural as well as in the singular number.
Every coal producer and every person engaged in the business
of severing oil or gas from the earth required to pay any of the taxes
imposed by this article shall, on or before the 20th day of each month,
transmit to the Commissioner of Revenue, upon a form furnished by
the Commissioner, a completed return showing such information as the
Commissioner of Revenue may require, including (i) the quantities
of coal, oil, and gas produced from each mining operation, (ii) the
gross receipts from all coal, oil, and gas severed from each mining
operation during the immediately preceding calendar month, and (iii)
any deductions that have been applied in calculating gross receipts.
At the request of the Commissioner of Revenue, coal producers and
persons engaging in the business of severing oil or gas shall provide
the names and addresses of any owners or other persons participating
in each mining operation, any persons who are members of an affiliated
group of which the operator is a member and to whom the coal, oil,
or gas was sold or placed into transit for shipment from the County,
and all persons having an economic interest in the mining operation.
In the event that any date on which a return is to be filed falls
upon a Saturday, Sunday, legal holiday, or other date on which the
County Courthouse is closed, then the time for the filing of such
return shall be extended until the next day that the Commissioner
of Revenue's office is open for business. This return shall be made
under oath and subject to the penalty for perjury. The Commissioner
of Revenue shall transmit to the County Treasurer forthwith all records
related to the taxes owed by and the payments received from each coal
producer and each person engaged in the business of severing gas or
oil from the earth.
In the event any coal producer or person engaged in the business of severing oil or gas from the earth fails to make a return as provided by this article, the Commissioner of Revenue shall give such coal producer or such person 10 days' notice in writing requiring such coal producer or such person to appear before him, with such books, records, and papers as the Commissioner of Revenue may require relating to the business of such coal producer or such person for such taxable period, and the Commissioner of Revenue may require such coal producer or such person or the agents and employees of such coal producer or such person to give testimony or to answer interrogatories under oath respecting such mining or extracting of coal, oil, or gas or the failure to make a return thereof as provided in this article. If, after being provided with the opportunity to supply such information, such coal producer or such person still fails to make a return or refuses to permit an examination of his or its books, records, or papers, or to appear and answer questions within the scope of such investigation, the Commissioner of Revenue is hereby authorized to make an estimate of gross receipts for all such coal, oil, or gas severed by or at the direction of such coal producer or such person and to assess the appropriate tax, plus penalties and interest in accordance with §
88-33, based upon such information as may be available to him. The County Treasurer may issue a warrant for the collection of any such taxes and penalties so found to be due. The assessment so made shall be deemed prima facie correct. In addition, the Commissioner of Revenue may, upon reasonable notice, assess taxes for such mining operation against any other person liable for the tax.
If the holder of a license issued under this article ceases
to conduct a mining operation, the license shall thereupon expire,
and such license holder shall inform the Commissioner of Revenue in
writing within 30 days thereafter that he has ceased to conduct such
mining operation. A copy of such report, upon receipt thereof, shall
be forwarded to the County Treasurer.
The taxes collected pursuant to this article shall be paid and
distributed as provided by Virginia law. Any taxes not distributed
according to specific provisions of law shall be paid into the general
fund of the County. In the event that a taxpayer is issued a refund
of severance license taxes paid pursuant to this article, the recipients
of the revenue from such severance license taxes shall be proportionately
liable for such refund based on their respective percentages of the
original distribution of such revenue. The County Treasurer is hereby
authorized to offset such liability for any such refund against any
future distribution of severance license tax revenues paid pursuant
to this article.
Pursuant to Virginia Code § 58.1-3713, there is hereby
established a Coal and Gas Road Improvement Advisory Committee to
be composed of four members as follows: a member of the Board of Supervisors
of the County appointed by the Board of Supervisors; a representative
of the Virginia Department of Transportation; and two citizens of
the County connected with the coal and gas industries and to be appointed
for a term of four years by the Chief Judge of the Circuit Court.
Pursuant to Virginia Code § 58.1-3713, the Coal and
Gas Road Improvement Advisory Committee shall develop, on or before
July first of each year, a plan for improvement of roads during the
following fiscal year. Such plan must have the approval of three members
of the Committee and shall be submitted to the Board of Supervisors
of the County for approval. The Board of Supervisors may approve or
disapprove such plan, but may make no changes without the approval
of three members of the Committee.
The Board of Supervisors may, in its discretion, and when permitted
by applicable state law, elect to improve city and town roads with
its funds, if consent of the city or town council is obtained.
Any taxpayer or authorized representative of a taxpayer may
request a written ruling regarding the application of a license tax
to a specific situation from the Commissioner of Revenue. Any person
requesting such a ruling must provide all facts relevant to the situation
placed at issue and may present a rationale for the basis of an interpretation
of the law most favorable to the taxpayer. Any misrepresentation or
change in the applicable law or the factual situation as presented
in the ruling request shall invalidate any such ruling issues. A written
ruling may be revoked or amended prospectively if (1) there is a change
in the law, a court decision, or the guidelines issued by the Department
of Taxation upon which the ruling was based or (2) the Commissioner
of Revenue notifies the taxpayer of a change in the policy or interpretation
upon which the ruling was based. However, any person who acts on a
written ruling which later becomes invalid shall be deemed to have
acted in good faith during the period in which such ruling was in
effect.
The Commissioner of Revenue is authorized to perform any audits
in connection with his duty to assess the taxes levied by this article
that, in his discretion, are necessary to enable him to verify the
correctness of the tax paid for the license months or years assessable
and to enable him to ascertain what is the correct amount of tax that
was assessable for each of those months or years.
In the event any provisions of this article or any part, section,
subsection, sentence, definition or phrase thereof should be held
unconstitutional or otherwise void or invalid on any ground, such
provision, part, section, subsection, sentence, or phrase shall be
deemed severable and the remainder of this article shall remain in
full force and effect.
It is the intention of this article to include the uniform ordinance
provisions of § 58.1-3703.1, with the exception of subdivisions
Al and A3 of such section. To the extent that any provision of this
article is in conflict with the provisions of § 58.1-3703.1
or this article fails to recite or contain provisions substantially
similar to those set forth in § 58.1-3703.1 (with the exception
of subdivisions Al and A3 of such section), such provisions of § 58.1-3703.1
are incorporated herein by reference and shall take precedence over
any conflicting provisions in this article.
No provision of this article shall be construed or interpreted
to change or affect, invalidate, or interfere with any agreement regarding
coal, gas, or oil severance license taxes entered into between a taxpayer
and the Commissioner of Revenue or other local assessing official
of the County.