The Register-Herald, Beckley, West Virginia

Local News

March 15, 2010

Coal bill could pump millions into southern West Virginia

By Greg Jordan For The Register-Herald

PRINCETON — A new bill that has passed both the House and the Senate of the West Virginia Legislature could bring more coal severance tax funds to five counties in southern West Virginia.

During the last legislative session, the Senate passed a version of the bill that pulls an additional 5 percent of coal severance tax out of the state’s general fund and sends it to the county of coal origin, but it died in the House, said Senate Majority Leader H. Truman Chafin, D-Mingo. Chafin said he recently pushed House Bill 4177, a version of the same bill, through the Senate.

“It does not constitute an additional tax,” Chafin said Monday. “It creates a new county reserve fund.”

Figures from the state Tax Department indicate five counties in southern West Virginia would realize a total of $3,018,000. Wyoming County would receive $600,000; McDowell, $500,000; Wayne, $600,000; and Mingo, $1.4 million. Mercer County, where little coal is mined, would receive $5,000.

Chafin said that the five counties are coal producers, and that the funds from the coal severance tax can be used to create jobs and better the lives of the counties’ residents.

The Hatfield-McCoy Trail, a trail system hosting all-terrain vehicle riders, is a coal severance tax success, Chafin said. It presently goes through Wyoming, McDowell, Mingo and Wayne counties, and is moving into Mercer County.

Partly funded by coal severance tax dollars, the trail is bringing tourists and jobs into the area, he said.

“We’ve fought for this a long time,” Chafin said of the bill. “This year the House passed it, and I’m really glad they did.”

The state Treasurer will distribute the funds with legislative approval; it will be the Legislature’s discretion whether to forward the money to the counties. The money can be used for economic development, infrastructure projects, jobs creation, and road repairs, Chafin said.

The bill now goes to Gov. Joe Manchin for his signature.

“I’m hopeful that he will follow the Legislature’s intent and discretion and sign this bill,” Chafin said. “It will be the right thing to do.”

— Greg Jordan is a member of The Bluefield Daily Telegraph editorial staff.

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