Senate committee advances repeal of B&O tax exemption for coal-fired merchant plants

Legislative Counsel explained that Senate Bill 935 would repeal the section of the West Virginia Code enacted to exempt certain coal-fired merchant power plants from the state's business-and-occupation (B&O) tax. Counsel said the change would make those facilities subject to the state B&O tax codified at 11-13-20 and defined "coal fired merchant power plant" for clarity. Counsel said staff could not yet quantify additional revenue but expected the bill to be revenue positive if passed.

A senator asked whether the state B&O tax applies outside municipalities; Counsel confirmed there is a state B&O tax that applies in limited circumstances. When asked how much revenue the change might generate, Counsel said, "We do not yet... No." and later added the bill "will be a revenue positive if the bill were passed." A senator from Wetzel asked whether there are two plants in the state (naming Pleasance and a plant in Monongalia County); Counsel said they were unaware of the number of plants and apologized for not having that information.

After discussion, the Vice Chair moved that SB935 be reported to the full Senate with a recommendation that it pass; the committee approved the motion by voice vote and the bill will be reported.