Gas severance taxes, local; validation of coal & gas severance tax & road improvement tax ordinance. (SB1111)

Introduced By

Sen. Ryan McDougle (R-Mechanicsville)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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.

Read the Bill »


Bill Has Passed


01/09/2013Prefiled and ordered printed; offered 01/09/13
01/09/2013Prefiled and ordered printed; offered 01/09/13 13101886D
01/09/2013Referred to Committee on Finance
01/22/2013Impact statement from TAX (SB1111)
01/30/2013Reported from Finance with substitute (14-Y 0-N) (see vote tally)
01/30/2013Committee substitute printed 13104755D-S1
01/31/2013Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/01/2013Read second time
02/01/2013Reading of substitute waived
02/01/2013Committee substitute agreed to 13104755D-S1
02/01/2013Engrossed by Senate - committee substitute SB1111S1
02/04/2013Read third time and passed Senate (40-Y 0-N) (see vote tally)
02/05/2013Impact statement from TAX (SB1111S1)
02/06/2013Placed on Calendar
02/06/2013Read first time
02/06/2013Referred to Committee on Finance
02/06/2013Assigned Finance sub: #1
02/06/2013Subcommittee recommends reporting (9-Y 0-N)
02/11/2013Reported from Finance (22-Y 0-N) (see vote tally)
02/12/2013Read second time
02/13/2013Read third time
02/13/2013Passed House BLOCK VOTE (100-Y 0-N)
02/13/2013VOTE: BLOCK VOTE PASSAGE (100-Y 0-N) (see vote tally)
02/19/2013Bill text as passed Senate and House (SB1111ER)
02/19/2013Impact statement from TAX (SB1111ER)
02/19/2013Signed by Speaker
02/20/2013Signed by President
03/14/2013G Approved by Governor-Chapter 391 (effective 7/1/13)
03/14/2013G Acts of Assembly Chapter text (CHAP0391)


This bill mentions Buchanan.


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 40 seconds.


Buchanan County Resident writes:

This bill is nothing less than the gas industry's (i.e. EQT) effort to avoid paying a minimal amount of taxes to one of the poorest counties in the nation, Buchanan County. The current tax policy was set up in conjunction with the natural gas industry in order to allow them to force pull natural gas from the area. Now, EQT wants to make heavy deductions from the measly 3% tax that goes straight to the local government, even though they make 84% of the revenue from the gas extraction.

With the help of their pet Ryan McDougall, who does not give a rat sh1t about Southwest Virginia, they are trying to miser even more money that should rightly go to the local citizens. SHAME! SHAME!

For multiple reasons, this is one of the most crooked, exploitative general assemblies since the segregation era. The Republican controlled General Assembly will go down in history for their infamy. It makes me wish that there was a he11 for some people to go to.