COUNTIES COULD LOSE COAL TAX - Coal Corps Challenging Taxation |
| (09/08/2005) |
| Although Calhoun County gets one of the smallest amounts of coal severance tax, it could be eliminated if a court battle by coal producers proves the tax is illegal. The county, which gets little tax from extractors, averages about $15,000 annually for the severance distribution, according to Clerk Richard Kirby. West Virginia may have to repay between $400 and $500 million if the coal companies win the suit. They are asking for a repeal based upon what they believe is an illegal tax on exported coal. The state could also lose about $55 million in other coal taxes that are distributed to counties. The case is based on a law that says import-export taxes cannot be imposed, a part of global trade. |