coal severance tax

Politics
12:33 pm
Thu December 27, 2012

Gov. Steve Beshear Concerned With Drop in Coal Severance Revenues

Steve Beshear
Credit Kentucky Governor's Office

Gov. Steve Beshear says he's concerned about the declining revenues form the coal severance tax, echoing concerns raised by House Speaker Greg Stumbo.

Money from the tax on mined coal is used largely for state, county and city infrastructure projects -- specifically in coal mining areas like Eastern Kentucky. 

“I am concerned about the coal severance receipts -- they are down, they’re down significantly. And that's because coal mining is down significantly, the tons of coal mined has dropped,” Beshear said.

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Environment
3:17 pm
Thu September 6, 2012

Lull in Mining Means $88 Million Less in Revenue

A slowdown in Kentucky's mining industry is causing financial problems. Diminished severance tax revenue could force some planned construction projects in the coalfields to be postponed.

Revenue from the state's coal severance tax is plummeting, with mines shutting down and miners being laid off.

Deputy State Budget Director John Hicks told lawmakers today that coal tax revenue is projected at $245 million this year. That's $88 million less than was expected when lawmakers passed the budget less than five months ago.

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Politics
3:49 pm
Fri August 31, 2012

Lawmakers to Examine Coal Severance Fund

Kentucky lawmakers will be briefed next week on the state’s ailing coal severance tax fund.

The office of the state budget director will update the lawmakers of the fund’s future on Wednesday, during a regularly scheduled meeting of the interim committee on natural resources and environment.

The coal severance fund is made up of a tax collected on each ton of coal mined in Kentucky. But the coal industry has had a rough year, and officials are forecasting problems maintaining previous levels of revenue.