Reduces tax rate on metallurgical coal in West Virginia over several years.

West Virginia HB5687 amends the severance tax on metallurgical coal, reducing the tax rate incrementally. Effective July 1, 2026, the tax rate on metallurgical coal will be 4.5% for the 2026-2027 fiscal year, 4% for 2027-2028, and 3.5% thereafter. This reduction applies to new underground mines and existing mines producing coal from seams less than 45 inches thick. The tax includes an additional severance tax for counties and municipalities.

Reduces tax rate on metallurgical coal in West Virginia over several years.

West Virginia HB5687 amends the severance tax on metallurgical coal, reducing the tax rate incrementally. Effective July 1, 2026, the tax rate on metallurgical coal will be 4.5% for the 2026-2027 fiscal year, 4% for 2027-2028, and 3.5% thereafter. This reduction applies to new underground mines and existing mines producing coal from seams less than 45 inches thick. The tax includes an additional severance tax for counties and municipalities.