Kentucky Statutes 143.021 – Tax credit for thin seam coal
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(1) A nonrefundable severance tax credit against the severance tax imposed by KRS
143.020 shall be allowed for new permitted production after July 1, 2000, as follows.
(a) For coal mined from above-drainage seams using deep mining or underground mining methods, the credit shall be equal to:
1. Two and one-quarter percent (2.25%) of the gross value of coal with a coal thickness of between twenty-seven (27) and thirty (30) inches; or
2. Three percent (3%) of the gross value of coal with a coal thickness of less than twenty-seven (27) inches.
(b) For coal mined from below-drainage seams using deep mining or underground mining methods, the credit shall be equal to:
1. Two and one-quarter percent (2.25%) of the gross value of coal with a coal thickness of between thirty-two (32) and thirty-six (36) inches;
2. Three percent (3%) of the gross value of coal with a coal thickness of between twenty-seven (27) and thirty-two (32) inches; or
3. Three and three-quarters percent (3.75%) of the gross value of coal with a coal thickness of less than twenty-seven (27) inches.
(2) Coal thickness under subsection (1) of this section shall be based on the weighted average isopach mapping of actual coal thickness by mine as certified by a professional engineer for each reporting period. The taxpayer shall attach a copy of the certified isopach mapping for each reporting period to the return filed for that period.
(3) The taxpayer shall take the tax credit under this section in conjunction with the taxpayer’s monthly return.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 478, sec. 2, effective July 14, 2000.
143.020 shall be allowed for new permitted production after July 1, 2000, as follows.
Terms Used In Kentucky Statutes 143.021
- Above-drainage: means coal in a coal bed that outcrops at the surface within a mine permit area and that is accessed at the outcrop location. See Kentucky Statutes 143.010
- Below-drainage: means coal in a coal bed that does not outcrop at the surface within a mine permit area and that is accessed by mine slopes or other openings that penetrate the coal a minimum of thirty (30) feet below the surface drainage level. See Kentucky Statutes 143.010
- Coal: means and includes any material composed predominantly of hydrocarbons in a solid state. See Kentucky Statutes 143.010
- Reporting period: means the period for which each taxpayer shall compute his tax liability and remit the tax due to the department. See Kentucky Statutes 143.010
- severance: means the physical removal of coal from the earth. See Kentucky Statutes 143.010
(a) For coal mined from above-drainage seams using deep mining or underground mining methods, the credit shall be equal to:
1. Two and one-quarter percent (2.25%) of the gross value of coal with a coal thickness of between twenty-seven (27) and thirty (30) inches; or
2. Three percent (3%) of the gross value of coal with a coal thickness of less than twenty-seven (27) inches.
(b) For coal mined from below-drainage seams using deep mining or underground mining methods, the credit shall be equal to:
1. Two and one-quarter percent (2.25%) of the gross value of coal with a coal thickness of between thirty-two (32) and thirty-six (36) inches;
2. Three percent (3%) of the gross value of coal with a coal thickness of between twenty-seven (27) and thirty-two (32) inches; or
3. Three and three-quarters percent (3.75%) of the gross value of coal with a coal thickness of less than twenty-seven (27) inches.
(2) Coal thickness under subsection (1) of this section shall be based on the weighted average isopach mapping of actual coal thickness by mine as certified by a professional engineer for each reporting period. The taxpayer shall attach a copy of the certified isopach mapping for each reporting period to the return filed for that period.
(3) The taxpayer shall take the tax credit under this section in conjunction with the taxpayer’s monthly return.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 478, sec. 2, effective July 14, 2000.