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Senate passes bill to remove B&O tax exemption for certain out-of-state coal-fired power plants
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Summary
The West Virginia Senate on Feb. 24 approved a bill to eliminate business-and-occupation tax exemptions for coal-fired merchant plants that do not purchase West Virginia coal or supply residents here, with supporters saying it protects local mining jobs and opponents raising interstate-commerce concerns; the measure passed 32–1–1.
The West Virginia Senate on Feb. 24 passed a bill aimed at ending a narrow business-and-occupation (B&O) tax exemption for certain coal-fired merchant power plants that do not buy West Virginia coal or supply electricity to state residents.
Supporters framed the change as a protection for coal miners and communities. The junior senator from the second, who closed debate in support of the bill, said the measure "draws a line and says we—re not going to subsidize our own decline," and argued that tax incentives should favor plants that use in-state coal and serve West Virginians.
Opponents warned of constitutional risks. The senator from Kabul urged rejection, saying the measure could conflict with the U.S. Constitution's interstate-commerce provisions and singled out the difficulty of singling out particular out-of-state buyers under federal commerce rules.
Sponsor remarks and supporters emphasized local economic impacts, citing risks to mines and related businesses if tax incentives continue to favor out-of-state power generation. The sponsor described job numbers and regional impacts, saying plant operations that export power and do not source West Virginia coal leave the state bearing environmental and economic costs while not capturing energy benefits.
The Senate recorded the final vote at 32 yays, 1 nay and 1 absent; senators subsequently adopted a title amendment and, by a separate supermajority vote, made the bill effective from passage.
What happens next: the clerk will communicate the Senate—s action to the House. If both chambers concur and the bill is enrolled, it will proceed to the governor for signature or veto.
