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WV/SEV-401C
Annual Coal Severance Tax Return Instructions

IMPORTANT INFORMATION: THE TAX DEPARTMENT WILL REJECT CLAIMS FOR REFUND OR
CREDIT IF ANY PART OF THE REQUIRED INFORMATION IS NOT PROVIDED WITH THE SEV-401C.
REQUIRED INFORMATION: LOCAL TAX (ALL COAL MINED, PROCESSED, OR SOLD)
1. Current SEV-401-C Form NOTE: The 0.35% local tax rate is not a new tax rate.
2. Isopach Maps (Must be submitted on or before the Legislative changes have made it necessary to separate the
due date of the return. Electronic copies of maps 0.35% local and county tax from the 4.65% general tax.
are encouraged, preferably PDF les.ﬁ These can Line 13 Enter the Gross Value of all coal mined, and
be attached in MyTaxes to the return when it is value added from processed coal.
ﬁ led or a web notice or sent as electronic media Line 14 Tax rate
by mail.) Include the Low Seam Underground
Coal Severance Tax Schedule with Isopach map Line 15 Multiply Line 13 x Line 14 and enter total.
submission. REGULAR COAL
3. Credit Schedules (Schedules must be attached This section is for coal that is not eligible for the
to the return. Credit without schedules that are Thin Seam reduced rate.
not attached to the return in MyTaxes will be Line 16 Tons Mined: Enter the total short tons mined
disallowed). and sold to electric power producers between July
4. Attach a spreadsheet with all active permit 1, 2020 and December 31, 2020 in the ﬁ rst column,
numbers. the total short tons mined and sold to electric power
5. Low Seam Underground Coal Severance Tax producers between January 1, 2020 and June 30,
Schedule 2020 in the second column, and the total short tons
mined and sold to others in the third column.
6. Power of Attorney (as needed)
Line 17 Tons Processed: Enter the total short tons
7. Sign and Date processed and sold to electric power producers
SECTION TC: TAX CREDITS between July 1, 2020 and December 31, 2020 in
Line 9 Enter $41.63 for 12th month engaged in the ﬁrst column, the total short tons processed and
business in West Virginia in the ﬁrst column. Enter sold to electric power producers between anuary 1,
$500 per year or $41.67 per month engaged in 2020 and June 30, 2020 in the second column, and
business in West Virginia in the second column. the total short tons processed and sold to others in
Only one annual exemption may be claimed by the third column.
each business entity. Line 18 Add Line 16 to Line 17 of each column and
Line 10 Enter the amount of the 12th month Investment enter total.
Credit in the ﬁrst column. Enter the amount of the Line 19 Gross Value: Enter the total gross value for
full year Investment Credit in the second column. all coal mined and all value added from processed
Line 11 Enter the amount of the 12th month credit coal. Coal sold to electric power producers between
for Coal Loading Facilities in the ﬁrst column. Enter July 1, 2020 and December 31, 2020 should be
the amount of the full year Coal Loading Facilities entered in the rstﬁcolumn. Coal sold to electric
credit in the second column. Include Schedule CL. power producers between anuary 1, 2020 and June
30, 2020 should be entered in the second column.
Line 12 Add lines 9 through 11 in the Full Year column Coal sold to other purchasers should be entered in
and report on Line 2 of Section A. the third column.
SECTION B: TAX COMPUTATIONS Line 20 Tax rates
COAL PRODUCED FROM REFUSE, GOB PILES, SLURRY Line 21 Multiply Line 19 by Line 20 and enter total in
PONDS, POND FINES, OR OTHER SOURCES OF WASTE correct columns.
COAL MUST BE REPORTED ON FORM WV/SEV-401W.
Line 22 Multiply Line 18 by 0.75 and enter total in
WEST VIRGINIA STATE TAX DEPARTMENT
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correct columns. in Column 3.
Line 23 Enter the greater of Line 21 or Line 22 for Line 37 Enter gross value of coal severed from seams
each column. between 37” and 45” during the 12th month period
in Column 1. Multiply Column 1 by Column 2 and
Line 24 Add both columns on line 23 and enter total.
enter total in Column 3.
THIN SEAM 37” TO 45” Line 38 Enter gross value of coal severed from
NOTE: ONLY QUALIFIED THIN SEAM COAL IS TO seams less than 37” during the 12th month period
BE REPORTED ON LINES 25 THROUGH 32. in Column 1. Multiply Column 1 by Column 2 and
Line 25 Enter total short tons of coal qualiﬁed as thin enter total in Column 3.
seam 37” to 45”. Line 39 Sum all lines in Column 1 and enter total.
Line 26 Enter total gross value of coal quali edﬁ as Line 40 Sum all lines in Column 3 and enter total.
thin seam 37” to 45”. SECTION E: Report of Coal Production for
Line 27 Tax rate. Taxable Year
Line 28 Multiply Line 26 by Line 27 and enter total. This section must be completed by all producers.
THIN SEAM UNDER 37” Processors of purchased coal are not subject to Section
NOTE: ONLY QUALIFIED THIN SEAM COAL IS TO E production. All tonnage must be reported along with the
BE REPORTED ON LINES 25 THROUGH 32. county in which the coal was extracted. Use a separate
Line 29 Enter total short tons of coal qualiﬁed as thin line for each mining permit/county of production.If you
seam less than 37”. produce coal from waste sources, the tonnage is to be
reported on WV/SEV-401W Waste Coal return.
Line 30 Enter total gross value of coal quali edﬁ as
thin seam less than 37”. Column 1 Enter the mining permit for the mine from
which the coal was severed.
Line 31 Tax Rate.
Column 2 Enter the name of the county in which the
Line 32 Multiply Line 30 by Line 31 and enter total.
coal was located when it was severed from the
Line 33 Add Lines 15, 24, 28, and 32 and enter total.
ground. Include all counties where coal was severed
Enter this ﬁgure on Section A, Line 1.
from the ground for the period being reported,
NOTE:To receive the reduced severance tax rate for low including quali edﬁ thin seam coal. If additional
seam coal (underground mines only), an Isopach Map space is needed, please attach a separate sheet
for each mining permit must be submitted on or before with your return.
the due date of the return. The Isopach Map must be Column 3 Enter the county FIPS code from the key
signed and certiﬁed by a professional engineer. Failure code below Section E. Please ensure the county code
to provide a copy of the Isopach Map will result in the printed on your return is where the coal was severed
recalculation of your tax at the (4.65%) rate. Information from the ground. All counties must be reported.
can be found in Interpretive Rule 110-13AB.
Column 4 Enter the total tons produced for the 12th
SECTION C: SEVERANCE TAX month period. Round all tons to the nearest whole
COMPUTATION 12TH MONTH PERIOD ton. Do not include decimal points or fractions.
Line 34 Enter gross value of coal severed from seams Column 5 Enter the total tons produced for the Full
greater than 45” and not sold to electric power Year. Round all tons to the nearest whole ton. Do
producers during the 12th month period in Column not include decimal points or fractions.
1. Multiply Column 1 by Column 2 and enter total SECTION A: TAX COMPUTATIONS
in Column 3.
Line 1 Enter the total from Line 33 of Section B.
Line 35 Enter the di erenceﬀbetween the price the
Line 2 Enter the total from Line 12 of Section TC.
unprocessed coal was purchased for and the price
the processed coal was sold for during the 12th Line 3 Subtract Line 1 from Line 2 and enter total.
month period in Column 1. Multiply Column 1 by Line 4 Enter the total of estimated payments made
Column 2 and enter total in Column 3. for the year and any carry forward credits from
Line 36 Enter gross value of coal severed from previous years.
seams greater than 45” and sold to electric power Line 5 Enter the total of Line 3 minus Line 4. If Line 4
producers during the 12th month period in Column is greater than Line 3, enter $0 and move to Line 6.
1. Multiply Column 1 by Column 2 and enter total Line 6 If line 4 is greater than Line 3, subtract Line 5
WEST VIRGINIA STATE TAX DEPARTMENT
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from Line 4 and enter total. next year’s tax return.
Line 7 Enter the amount of Line 6 to be credited to Line 8 Enter the amount of Line 6 to be refunded.
ADDITIONAL INFORMATION
$500 Annual Exemption: payment or remits less than the required amount is
This exemption is allowed only for the period you were subject to additions to tax. No additions are imposed if
in business. The exemption may exceed the adjusted a quarterly taxpayer timely pays estimated tax equal to
tax but will not result in a refund. A refund is the result three-fourths (.75) or more of the actual tax liability. No
of excessive actual tax paid. Only one exemption, not additions are imposed if a monthly taxpayer timely pays
to exceed $500.00 per year, may be claimed by each estimated tax equal to eleven-twelfths (.92) or more of
business entity although you may operate more than the actual tax liability. The amount of the underpayment
one location or ﬁle more than one type of Severance is determined to be the diﬀerence between the amount
Tax return. that should have been paid and that which was actually
paid. The period of underpayment of an installment is
Example: The exemption per month is $41.67 and from the due date of the installment payment to the
per day is $1.37. if you were in business July 27 earlier of either the due date of the annual return for the
through December 31, 2007, your exemption is taxable year or the date upon which such portion is paid.
$215.00 ($41.67 x 5 months = $208.35 and $1.37
x 5 days = $6.85, rounded to the nearest dollar). Credit for Coal Loading Facilities (11-13E):
Non-waivable Interest: This credit is available to taxpayers subject to
severance tax. The credit is based on purchases of real
Tax that is not paid by the due date of the tax return or personal property or a combination thereof, for the
interest will accrue at an adjusted rate established by purpose of building or constructing a new or expanded
the Tax Commissioner. An extension to ﬁle a return is coal loading facility or who revitalize an existing coal
not an extension to pay. The annual rate will never be loading facility which was in the state on April 1, 1983.
less than eight percent (8%). The interest rate will be The facility is to be used solely for the purpose of
determined and in e ectﬀ for periods of six months. If transferring coal from a coal processing or preparation
there are any questions, please refer to TSD-365 on facility, or from a coal storage facility, or both, or from
our website at tax.wv.gov. any means of transportation, to any means of rail or
Additions to Tax: barge transportation used to move coal, including such
Additions to tax are imposed for failure to ﬁle the return land as is directly associated with and solely used for
on or before the due date and for failure to pay all tax the coal loading facility. The coal loading facility credit
due on or before the due date of the tax return (without attributable to investment made on or after March 1,
regard to an extension of time to ﬁle). The rate for late 1985 is limited to ftyﬁpercent (50%) of the gross tax
ﬁ ling is ﬁve percent (5%) per month or any part of a payable for Severance Tax.
month. The rate for late payment of tax is one half of Credit for Industrial Expansion and/or Revitalization
one percent (0.5%) per month or any part of a month. (11-13D):
An extension of time for ﬁling does not extend the time A credit is allowed against Business and Occupation
for payment of tax. Where both the ﬁve percent penalty Tax, Severance Tax and Business Franchise Tax
for late ﬁling and one half of one percent penalty for to certain industrial taxpayers who make capital
late payment of tax are imposed, the maximum monthly investments in a new or expanded industrial facility
percent is ﬁve percent (5%), the maximum amount of in this state or who replace or modernize building,
additions to tax imposed under either penalty is twenty- equipment, machinery and other tangible personal
ﬁ ve percent (25%); the maximum amount under both property used in the operation of an industrial facility
penalties is ﬁfty percent (50%) of the tax due. If there located in this state, including the acquisition of any real
are any questions, please refer to TSD-365 on our property necessary to the expansion or revitalization.
website at tax.wv.gov. The amount of industrial expansion and revitalization
Penalty for Underpayment of Estimated Tax: credit taken may not exceed ﬁfty percent (50%) of the
Any person required to make monthly or quarterly tax attributable to the processing of purchased coal.
payments of an annual tax and fails to make a timely
Forms and schedules may be obtained from our website at tax.wv.gov.

WEST VIRGINIA STATE TAX DEPARTMENT
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