                                 CODE OF VIRGINIA

LOCAL GAS ROAD IMPROVEMENT AND VIRGINIA COALFIELD ECONOMIC DEVELOPMENT AUTHORITY
TAX (§ 58.1-3713)

A. In addition to the taxes authorized under &#xA7; 58.1-3712, any county or
city may adopt a license tax on every person engaging in the business of
severing gases from the earth. The rate of such tax shall not exceed one
percent. The provisions of &#xA7; 58.1-3712 as they relate to measurement of
gross receipts, filing of reports and record keeping shall be applicable to the
tax imposed under this section.
			The moneys collected for each county or city from the taxes imposed under
authority of this section and subsection B of &#xA7; 58.1-3741 shall be paid
into a special fund of such county or city to be called the Coal and Gas Road
Improvement Fund of such county or city, and shall be spent for such
improvements to public roads as the coal and gas road improvement advisory
committee and the governing body of such county or city may determine as
provided in subsection B of this section. The county may also, in its
discretion, elect to improve city or town roads with its funds if consent of the
city or town council is obtained. Such funds shall be in addition to those
allocated to such counties from state highway funds which allocations shall not
be reduced as a result of any revenues received from the tax imposed hereunder.
In those localities that comprise the Virginia Coalfield Economic Development
Authority, the tax imposed under this section or subsection B of &#xA7;
58.1-3741 shall be paid as follows: (i) three-fourths of the revenue shall be
paid to the Coal and Gas Road Improvement Fund and used for the purposes set
forth herein; however, one-fourth of such revenue may be used to fund the
construction of new water or sewer systems and lines and the repair or
enhancement of existing water or sewer systems and lines in areas with natural
water supplies that are insufficient from the standpoint of quality or quantity,
or the construction of natural gas service lines as authorized by &#xA7;
15.2-2109.3, and (ii) one-fourth of the revenue shall be paid to the Virginia
Coalfield Economic Development Fund. Furthermore, with regard to the portion
paid to the Coal and Gas Road Improvement Fund, a county or city may provide for
an additional one-fourth allocation for the construction of new systems or lines
for water, sewer, or natural gas as authorized by &#xA7; 15.2-2109.3, or the
repair or enhancement of existing water, sewer, or natural gas systems or lines
in areas with natural water supplies or existing natural gas services that are
insufficient from the standpoint of quality or quantity; however, if this option
is initiated by a county or city, it must satisfy the requirements set forth in
&#xA7; 58.1-3713.01. Notwithstanding the foregoing limitations regarding
revenues used for water systems, sewer systems, or natural gas systems, such
revenues designated for water and water systems, sewer systems, or natural gas
systems shall be distributed directly to the local public service authority for
such purposes instead of the local governing body. Funds in the Coal and Gas
Road Improvement Fund used to construct, repair, or enhance natural gas service
lines or systems shall not exceed one-fourth of the revenue paid to the Coal and
Gas Road Improvement Fund collected from the severance tax imposed upon the
severance of natural gas pursuant to this section and may be so used only upon
passage of a local ordinance or resolution of the governing body of the
applicable county or city providing for the same. Furthermore, with regard to
the portion paid to the Coal and Gas Road Improvement Fund, such funds may be
used to construct flood mitigation measures that would reduce or prevent
flooding of any infrastructure listed in this subsection if the construction,
repair, or enhancement of such infrastructure is otherwise permissible under
this section.

B. Any county or city imposing the tax authorized in this section or in
subsection B of &#xA7; 58.1-3741 shall establish a Coal and Gas Road Improvement
Advisory Committee, to be composed of four members: (i) a member of the
governing body of such county or city, appointed by the governing body, (ii) a
representative of the Department of Transportation, and (iii) two citizens of
such county or city connected with the coal and gas industry, appointed for a
term of four years, initially commencing July 1, 1989, by the chief judge of the
circuit court.
			Such committee shall develop on or before July 1 of each year a plan for
improvement of roads during the following fiscal year. Such plan shall have the
approval of three members of the committee and shall be submitted to the
governing body of the county or city for approval. The governing body may
approve or disapprove such plan, but may make no changes without the approval of
three members of the committee.

C. No tax shall be imposed under this section on or after January 1, 2028.

HISTORY: Code 1950, § 58-266.1:2; 1978, c. 646; 1984, c. 675; 1986, c. 58;
1988, c. 784; 1989, cc. 265, 380; 1991, c. 164; 1993, c. 163; 1996, c. 706;
2004, cc. 871, 893; 2005, c. 645; 2006, cc. 78, 497; 2007, cc. 57, 586; 2009, c.
367; 2013, cc. 305, 306, 618; 2014, cc. 44, 187; 2015, cc. 271, 381; 2016, cc.
301, 340; 2017, cc. 52, 443; 2019, cc. 24, 191; 2021, Sp. Sess. I, c. 430; 2023,
cc. 224, 225; 2025, c. 116.