{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3740.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3740.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3740.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3740.html"}],"law_id":82049,"edition_id":1,"section_id":82049,"structure_id":15149,"section_number":"58.1-3740","catch_line":"Definitions","history":"2013, cc. 305, 618.","full_text":"As used in this chapter, unless the context requires a different meaning:\n\t\t“Coal producer” means any holder of an economic interest. Such persons shall be deemed to be engaged in the business of severing coal from the earth.\n\t\t“Economic interest” means the interest possessed by a person who has acquired by capital investment any interest in the coal in place and secures, by any form of legal relationship, income from the extraction of the coal, to which he must look for a return of his capital. A person who has no capital investment in the coal deposit shall not possess an economic interest merely because through a contractual relation he possesses a mere economic or pecuniary advantage derived from production such as persons who have a contractual right to purchase or process the coal upon production or persons entitled to compensation for extracting or mining the coal. For purposes of this chapter, “economic interest” does not include interests possessed by a person who receives only royalty payments solely because of such royalty payments. Apart from the royalty interest exclusion in this definition, it is the intent of the General Assembly that “economic interest” shall have essentially the same meaning as for purposes of 26 C.F.R. \u00a7 1.611-1.\n\t\t“Gross receipts” means the purchase price received by a coal producer for the sale of coal to an unaffiliated purchaser in an arm’s-length transaction. “Gross receipts” does not include the cost of transporting the coal to such an unaffiliated purchaser. In circumstances in which the coal is (i) utilized by the coal producer or an affiliated individual or entity or (ii) sold in a related-party transaction or under circumstances that indicate the sale is not an arm’s-length transaction, “gross receipts” shall be determined by multiplying the volume of coal utilized or sold by (a) the average sale price received by the coal producer in arm’s-length transactions for the sale of other coal reasonably deemed by the commissioner of the revenue or other local assessing official of the locality to be of comparable quality during the same time frame or (b) if no such other sales are available, the sale price of other coal reasonably deemed by the commissioner of the revenue or other local assessing official of the locality to be of comparable quality, sold by other coal producers engaged in the severance of similar coal within the county or city or neighboring counties or cities during the same time frame. No deductions shall be taken from gross receipts except for a deduction for non-local coal transportation and processing costs.\n\t\t“Non-local coal transportation and processing costs” means only such costs applicable to coal that is severed in one county or city and then transported by the coal producer to another county or city for cleaning, preparation, or processing in order to achieve a dry and clean coal. “Non-local coal transportation and processing costs” includes the costs of transporting the coal from the county or city in which it was severed to the second county or city and the costs of cleaning, preparation, and processing that are incurred within that second county or city. Such costs shall not include any costs associated with blending dry and clean coals unless such blending occurs in the same non-local county or city to which the coal is initially transported for cleaning, preparation, or processing. The amount of the deduction for non-local coal transportation and processing costs shall be calculated by dividing the total actual costs incurred per ton in such non-local transportation, cleaning, preparation, and processing by the total costs per ton of mining, transportation, cleaning, preparation, and processing of such coal to derive a factor or percentage. Such factor or percentage shall then be multiplied by the gross receipts from the sale or utilization of such coal to determine the applicable deduction for non-local coal transportation and processing costs.\n\t\t“Small mine” means a mine that sells less than 10,000 tons of coal per month.","order_by":null,"text":{"0":{"id":294011,"text":"As used in this chapter, unless the context requires a different meaning:\n\t\t“Coal producer” means any holder of an economic interest. Such persons shall be deemed to be engaged in the business of severing coal from the earth.\n\t\t“Economic interest” means the interest possessed by a person who has acquired by capital investment any interest in the coal in place and secures, by any form of legal relationship, income from the extraction of the coal, to which he must look for a return of his capital. A person who has no capital investment in the coal deposit shall not possess an economic interest merely because through a contractual relation he possesses a mere economic or pecuniary advantage derived from production such as persons who have a contractual right to purchase or process the coal upon production or persons entitled to compensation for extracting or mining the coal. For purposes of this chapter, “economic interest” does not include interests possessed by a person who receives only royalty payments solely because of such royalty payments. Apart from the royalty interest exclusion in this definition, it is the intent of the General Assembly that “economic interest” shall have essentially the same meaning as for purposes of 26 C.F.R. \u00a7 1.611-1.\n\t\t“Gross receipts” means the purchase price received by a coal producer for the sale of coal to an unaffiliated purchaser in an arm’s-length transaction. “Gross receipts” does not include the cost of transporting the coal to such an unaffiliated purchaser. In circumstances in which the coal is (i) utilized by the coal producer or an affiliated individual or entity or (ii) sold in a related-party transaction or under circumstances that indicate the sale is not an arm’s-length transaction, “gross receipts” shall be determined by multiplying the volume of coal utilized or sold by (a) the average sale price received by the coal producer in arm’s-length transactions for the sale of other coal reasonably deemed by the commissioner of the revenue or other local assessing official of the locality to be of comparable quality during the same time frame or (b) if no such other sales are available, the sale price of other coal reasonably deemed by the commissioner of the revenue or other local assessing official of the locality to be of comparable quality, sold by other coal producers engaged in the severance of similar coal within the county or city or neighboring counties or cities during the same time frame. No deductions shall be taken from gross receipts except for a deduction for non-local coal transportation and processing costs.\n\t\t“Non-local coal transportation and processing costs” means only such costs applicable to coal that is severed in one county or city and then transported by the coal producer to another county or city for cleaning, preparation, or processing in order to achieve a dry and clean coal. “Non-local coal transportation and processing costs” includes the costs of transporting the coal from the county or city in which it was severed to the second county or city and the costs of cleaning, preparation, and processing that are incurred within that second county or city. Such costs shall not include any costs associated with blending dry and clean coals unless such blending occurs in the same non-local county or city to which the coal is initially transported for cleaning, preparation, or processing. The amount of the deduction for non-local coal transportation and processing costs shall be calculated by dividing the total actual costs incurred per ton in such non-local transportation, cleaning, preparation, and processing by the total costs per ton of mining, transportation, cleaning, preparation, and processing of such coal to derive a factor or percentage. Such factor or percentage shall then be multiplied by the gross receipts from the sale or utilization of such coal to determine the applicable deduction for non-local coal transportation and processing costs.\n\t\t“Small mine” means a mine that sells less than 10,000 tons of coal per month.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":15149,"edition_id":1,"name":"Local Coal Severance License Taxes","identifier":"37.1","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:52:32","date_modified":"2026-06-26 03:52:32","permalink":{"id":258357,"object_type":"structure","relational_id":15149,"identifier":"37.1","token":"58.1\/III\/37.1","url":"\/58.1\/III\/37.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":82049,"structure_id":15149,"section_number":"58.1-3740","catch_line":"Definitions","url":"\/58.1-3740\/","token":"58.1\/III\/37.1\/58.1-3740","metadata":false},{"id":76655,"structure_id":15149,"section_number":"58.1-3741","catch_line":"Counties and cities authorized to levy severance license tax on the sale of coal","url":"\/58.1-3741\/","token":"58.1\/III\/37.1\/58.1-3741","metadata":false},{"id":63950,"structure_id":15149,"section_number":"58.1-3742","catch_line":"Distribution of local coal road improvement severance tax","url":"\/58.1-3742\/","token":"58.1\/III\/37.1\/58.1-3742","metadata":false},{"id":62435,"structure_id":15149,"section_number":"58.1-3743","catch_line":"Severance license taxes to be paid to jurisdiction in which coal is severed","url":"\/58.1-3743\/","token":"58.1\/III\/37.1\/58.1-3743","metadata":false},{"id":67917,"structure_id":15149,"section_number":"58.1-3744","catch_line":"Uniform ordinance provisions","url":"\/58.1-3744\/","token":"58.1\/III\/37.1\/58.1-3744","metadata":false},{"id":57709,"structure_id":15149,"section_number":"58.1-3745","catch_line":" Lien on real estate and personal property of businesses severing coal","url":"\/58.1-3745\/","token":"58.1\/III\/37.1\/58.1-3745","metadata":false}],"next_section":{"id":76655,"structure_id":15149,"section_number":"58.1-3741","catch_line":"Counties and cities authorized to levy severance license tax on the sale of coal","url":"\/58.1-3741\/","token":"58.1\/III\/37.1\/58.1-3741","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3740\/","history_text":"

This law was first created in 2013. The record of its establishment is cataloged in chapters 305<\/a> and 618<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":258359,"object_type":"law","relational_id":82049,"identifier":"58.1-3740","token":"58.1\/III\/37.1\/58.1-3740","url":"\/58.1-3740\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3740\/","token":"58.1\/III\/37.1\/58.1-3740","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3740","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter, unless the context requires a different meaning:\n\t\t“Coal producer<\/span>” means any holder of an economic interest<\/span>. Such persons shall be deemed to be engaged in the business of severing coal from the earth.\n\t\t“Economic interest<\/span>” means the interest possessed by a person who has acquired by capital investment any interest in the coal in place and secures, by any form of legal relationship, income from the extraction of the coal, to which he must look for a return of his capital. A person who has no capital investment in the coal deposit shall not possess an economic interest<\/span> merely because through a contractual relation he possesses a mere economic or pecuniary advantage derived from production such as persons who have a contractual right to purchase or process the coal upon production or persons entitled to compensation for extracting or mining the coal. For purposes of this chapter, “economic interest<\/span>” does not include interests possessed by a person who receives only royalty payments solely because of such royalty payments. Apart from the royalty interest exclusion in this definition, it is the intent<\/span> of the General Assembly that “economic interest<\/span>” shall have essentially the same meaning as for purposes of 26 C.F.R. \u00a7 1.611-1.\n\t\t“Gross receipts<\/span>” means the purchase price received by a coal producer<\/span> for the sale of coal to an unaffiliated purchaser in an arm’s-length transaction. “Gross receipts<\/span>” does not include the cost of transporting the coal to such an unaffiliated purchaser. In circumstances in which the coal is (i) utilized by the coal producer<\/span> or an affiliated individual or entity or (ii) sold in a related-party<\/span> transaction or under circumstances that indicate the sale is not an arm’s-length transaction, “gross receipts<\/span>” shall be determined by multiplying the volume of coal utilized or sold by (a) the average sale price received by the coal producer<\/span> in arm’s-length transactions for the sale of other coal reasonably deemed by the commissioner of the revenue or other local assessing official of the locality to be of comparable quality during the same time frame or (b) if no such other sales are available, the sale price of other coal reasonably deemed by the commissioner of the revenue or other local assessing official of the locality to be of comparable quality, sold by other coal producers<\/span> engaged in the severance of similar coal within the county or city or neighboring counties or cities during the same time frame. No deductions shall be taken from gross receipts<\/span> except for a deduction for non-local coal transportation and processing costs<\/span>.\n\t\t“Non-local coal transportation and processing costs<\/span>” means only such costs applicable to coal that is severed in one county or city and then transported by the coal producer<\/span> to another county or city for cleaning, preparation, or processing in order<\/span> to achieve a dry and clean coal. “Non-local coal transportation and processing costs<\/span>” includes the costs of transporting the coal from the county or city in which it was severed to the second county or city and the costs of cleaning, preparation, and processing that are incurred within that second county or city. Such costs shall not include any costs associated with blending dry and clean coals unless such blending occurs in the same non-local county or city to which the coal is initially transported for cleaning, preparation, or processing. The amount of the deduction for non-local coal transportation and processing costs<\/span> shall be calculated by dividing the total actual costs incurred per ton in such non-local transportation, cleaning, preparation, and processing by the total costs per ton of mining, transportation, cleaning, preparation, and processing of such coal to derive a factor or percentage. Such factor or percentage shall then be multiplied by the gross receipts<\/span> from the sale or utilization of such coal to determine the applicable deduction for non-local coal transportation and processing costs<\/span>.\n\t\t“Small mine<\/span>” means a mine that sells less than 10,000 tons of coal per month.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 58.1-3740)\n\nAs used in this chapter, unless the context requires a different meaning:\n\t\t“Coal producer” means any holder of an economic interest. Such\npersons shall be deemed to be engaged in the business of severing coal from the\nearth.\n\t\t“Economic interest” means the interest possessed by a person who\nhas acquired by capital investment any interest in the coal in place and\nsecures, by any form of legal relationship, income from the extraction of the\ncoal, to which he must look for a return of his capital. A person who has no\ncapital investment in the coal deposit shall not possess an economic interest\nmerely because through a contractual relation he possesses a mere economic or\npecuniary advantage derived from production such as persons who have a\ncontractual right to purchase or process the coal upon production or persons\nentitled to compensation for extracting or mining the coal. For purposes of this\nchapter, “economic interest” does not include interests possessed by\na person who receives only royalty payments solely because of such royalty\npayments. Apart from the royalty interest exclusion in this definition, it is\nthe intent of the General Assembly that “economic interest” shall\nhave essentially the same meaning as for purposes of 26 C.F.R. \u00a7 1.611-1.\n\t\t“Gross receipts” means the purchase price received by a coal\nproducer for the sale of coal to an unaffiliated purchaser in an\narm’s-length transaction. “Gross receipts” does not include\nthe cost of transporting the coal to such an unaffiliated purchaser. In\ncircumstances in which the coal is (i) utilized by the coal producer or an\naffiliated individual or entity or (ii) sold in a related-party transaction or\nunder circumstances that indicate the sale is not an arm’s-length\ntransaction, “gross receipts” shall be determined by multiplying the\nvolume of coal utilized or sold by (a) the average sale price received by the\ncoal producer in arm’s-length transactions for the sale of other coal\nreasonably deemed by the commissioner of the revenue or other local assessing\nofficial of the locality to be of comparable quality during the same time frame\nor (b) if no such other sales are available, the sale price of other coal\nreasonably deemed by the commissioner of the revenue or other local assessing\nofficial of the locality to be of comparable quality, sold by other coal\nproducers engaged in the severance of similar coal within the county or city or\nneighboring counties or cities during the same time frame. No deductions shall\nbe taken from gross receipts except for a deduction for non-local coal\ntransportation and processing costs.\n\t\t“Non-local coal transportation and processing costs” means only\nsuch costs applicable to coal that is severed in one county or city and then\ntransported by the coal producer to another county or city for cleaning,\npreparation, or processing in order to achieve a dry and clean coal.\n“Non-local coal transportation and processing costs” includes the\ncosts of transporting the coal from the county or city in which it was severed\nto the second county or city and the costs of cleaning, preparation, and\nprocessing that are incurred within that second county or city. Such costs shall\nnot include any costs associated with blending dry and clean coals unless such\nblending occurs in the same non-local county or city to which the coal is\ninitially transported for cleaning, preparation, or processing. The amount of\nthe deduction for non-local coal transportation and processing costs shall be\ncalculated by dividing the total actual costs incurred per ton in such non-local\ntransportation, cleaning, preparation, and processing by the total costs per ton\nof mining, transportation, cleaning, preparation, and processing of such coal to\nderive a factor or percentage. Such factor or percentage shall then be\nmultiplied by the gross receipts from the sale or utilization of such coal to\ndetermine the applicable deduction for non-local coal transportation and\nprocessing costs.\n\t\t“Small mine” means a mine that sells less than 10,000 tons of coal\nper month.\n\nHISTORY: 2013, cc. 305, 618.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}