Published: July 27, 2008 08:50 pm      

Coal fuels new revenue

WELCH — The recent upswing in coal mining activity across southern West Virginia is also helping to generate new tax revenue for local coal-producing counties and municipalities.

McDowell County is one part of the state that has seen an increase in coal mining activity in recent months. As a result, the county and its towns are seeing an increase in coal-severance taxes.

“It is really helping out the economy because we’ve got more people going into the coal industry,” Rachel Lester, the county’s economic development coordinator, said. “I even know people who have been through career changes in their 30s or 40s who are going into the mines for the first time just because the benefits are so great. That really helps the economy of McDowell County. And as far as the coal severance itself, I know the towns also benefit from it. This has a great impact, and is a real benefit.”

Lester said officials also are seeing more young people, and even more women, taking mining-related jobs.

In June of 2008, McDowell County had a 75 percent coal severance tax distribution of $353,865.34. The county also had a 25 percent coal severance tax distribution in June of $20,709.13. That is up significantly from a year ago in June of 2007 when the county’s total coal severance collection for the month was only $25,442.85, according to data obtained from the state treasurer’s website.

The coal severance tax imposed upon those companies who prepare coal for sale is collected by the state tax commissioner where it is then transferred into a special fund by the state treasurer’s office. The treasurer’s office in return distributes 75 percent of the net proceeds to coal producing counties with the remaining 25 percent of the tax proceeds being distributed to all counties and municipalities based upon their population, according to the office of State Treasurer John Perdue.

While the revenue was significantly smaller, several towns across McDowell County also received coal severance tax distributions in the month of June. For example, the town of Anawalt received $277.94; the town of Bradshaw, $295.31; the town of Gary, $937.04; the town of Iaeger, $365.83; and the town of Kimball, $419.99.

The city of Welch received the largest coal severance tax distribution in June at $2,741.67.

– Contact Charles Owens at cowens@bdtonline.com