Coal tax cuts among bills signed by Justice Wednesday

[TexasTowelie]

Two bills giving tax breaks to the coal industry were among legislation Gov. Jim Justice signed into law Wednesday, ahead of a midnight deadline to act on bills passed in the 2019 regular session of the West Virginia Legislature.

Among the bills Justice signed Wednesday is legislation to provide for a three-year phase-down on the state severance tax on steam coal from 5 percent to 3 percent, ultimately costing the state about $60 million a year in tax revenue (House Bill 3142).

Although touted by the industry as a way to help make state steam coal prices competitive with out-of-state producers, economists have said the cut, at best, will only slow an ongoing decline in stream coal production and employment as electric utilities continue to convert to cheaper, cleaner forms of energy, including natural gas.

“You may see mining employment decline at a slightly slower pace than it’s currently declining,” Deputy Revenue Secretary Mark Muchow told the Senate Finance Committee during the sessoin.

Read more: https://www.wvgazettemail.com/news/coal-tax-cuts-among-bills-signed-by-justice-wednesday/article_2def2aaa-b636-537d-96a8-266aafeb9e9a.html

[riversedge]

1. Money needs to be spent on re-education of these workers. Not holding my breath.