Kentucky SB 275: AN ACT relating to coal severance tax.

Bill Text

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AN ACT relating to coal severance tax. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
SECTION 1.      A  NEW  SECTION  OF  KRS  CHAPTER  143  IS  CREATED  TO 3 
READ AS FOLLOWS: 4 
(1) As used in this section, "qualified coal" means coal which is: 5 
(a) Severed  or  processed  in  this  state  and  upon  which  the  tax  imposed  under 6 
KRS 143.020 has been timely paid for periods beginning on or after August 7 
1, 2021, but before July 1, 2023; 8 
(b) Transported directly to a facility within this state; and 9 
(c) Used for the manufacture of electricity in this state. 10 
(2) (a) For periods beginning on or after August 1, 2021, but before July 1, 2023, a 11 
taxpayer engaged in severing or processing coal within this state may apply 12 
for a refund equal to the amount of tax paid on qualified coal. 13 
(b) To apply for the refund allowed under paragraph (a) of this subsection, the 14 
taxpayer shall file an application for refund with the department and submit 15 
all information and documentation necessary to substantiate the tax paid on 16 
qualified coal. 17 
(3) (a) The  refund  process  allowed  under  subsection  (2)  of  this  section  is  limited 18 
during any fiscal year to a combined total of thirty million (30,000,000) tons 19 
of qualified coal; 20 
(b) All refunds shall be processed by the department on a first-come first-served 21 
basis  and  shall  end  during  the  fiscal  year  when  refunds  on  qualified  coal 22 
have been issued on the combined total of thirty million (30,000,000) tons. 23 
(4) (a) The department may promulgate administrative regulations to carry out the 24 
provisions of this section. 25 
(b) In  order  for  the  General  Assembly  to  evaluate  the  effectiveness  of  the 26 
refund  established  under  this  section,  the  department  shall  provide  the 27 

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following information on a cumulative basis for each fiscal year to provide 1 
a historical impact of the refunds issued: 2 
1. The name of the taxpayer claiming the refund; 3 
2. The date the refund was issued to the taxpayer; 4 
3. The location, by county, where the eligible coal is processed; 5 
4. The location, by county, where the eligible coal is transported; 6 
5. The  amount  of  qualified  coal,  in  tons,  upon  which  the  refund  was 7 
issued; 8 
6. The amount of refund issued to the taxpayer; 9 
7. The  total  amount  of  qualified  coal  for  all  refunds  issued  to  all 10 
taxpayers; and 11 
8. The total amount of all refunds issued to all taxpayers. 12 
(c) The  report  required  by  paragraph  (b)  of  this  subsection  shall  be  submitted 13 
to  the  Interim  Joint  Committee  on  Appropriations  and  Revenue  beginning 14 
no  later  than  November  1,  2022,  and  no  later  than  each  November  1 15 
thereafter,  as  long  as  any  refund  on  qualified  coal  is  issued  by  the 16 
department. 17 
Section 2.   KRS 131.190 is amended to read as follows: 18 
(1) No  present  or  former  commissioner  or  employee of  the  department,  present  or 19 
former member of a county board of assessment appeals, present or former property 20 
valuation administrator or employee, present or former secretary or employee of the 21 
Finance  and  Administration Cabinet, former secretary or employee of the Revenue 22 
Cabinet, or any other person, shall intentionally and without authorization inspect or 23 
divulge any information acquired by him of the affairs of any person, or information 24 
regarding  the  tax  schedules,  returns,  or  reports  required  to  be filed  with  the 25 
department  or  other  proper  officer,  or  any  information  produced  by  a  hearing  or 26 
investigation,  insofar  as  the  information  may  have  to  do  with  the  affairs  of  the 27 

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person's business. 1 
(2) The prohibition established by subsection (1) of this section shall not extend to: 2 
(a) Information  required  in  prosecutions  for  making  false  reports  or  returns  of 3 
property for taxation, or any other infraction of the tax laws; 4 
(b) Any matter properly entered upon any assessment record, or in any way made 5 
a matter of public record; 6 
(c) Furnishing  any  taxpayer  or  his  properly  authorized  agent  with  information 7 
respecting his own return; 8 
(d) Testimony  provided by the commissioner or any employee of the department 9 
in any court, or the introduction as evidence of returns or reports filed with the 10 
department,  in  an  action  for  violation  of  state  or  federal  tax  laws  or  in  any 11 
action challenging state or federal tax laws; 12 
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 13 
energy  resources  assessed  under  KRS  132.820,  or  owners  of  surface  land 14 
under  which  the  unmined  min