Coal Severance And Food Tax Bills Signed

• {West Virginia}...Tuesday, Acting Governor Earl Ray Tomblin signed the bill which dedicates an additional percentage of coal severance tax revenues to the counties where coal is mined. The bill reallocates revenue from the tax in 1 percent increments over the next five years, starting July 1, 2012. By the year 2017, an additional 5 percent will head to the coal mining counties. The revenue will be placed in a special fund called the Coal County Reallocated Severance Tax Fund to be used on economic development and infrastructure projects. Senate Bill 1002 caps the amount distributed to the counties at $20 million per year. Tomblin signed Senate Bill 1001, phasing out the food tax in West Virginia. On January 1, 2012, the tax will drop to 2 percent. On July 2012, the tax will drop to 1percent. On December 31, 2012, the tax will be removed completely, as long as the percentage of general revenue budget in the Rainy Day Fund is at least 12.5 percent. Senate Bill 1011 also increases the cap on mandatory surplus transfers to the Rainy Day Fund from 10 percent to 13 percent of the general revenue budget.