Business and the Economy
Coal Tax Worries
A decline in coal mining tax revenue has many of Kentucky’s top officials concerned. House Speaker Greg Stumbo and Governor Steve Beshear say they are concerned about the declining revenues from the coal severance tax. The tax is used for a variety of state, county and local infrastructure projects, mostly in Eastern Kentucky. Beshear says the drop in revenue reflects the tough market for Kentucky coal.
“I am concerned about the coal severance receipts, they are down, they’re down significantly. And that because coal mining is down significantly, the tons of coal mined has dropped,” said Beshear.
Beshear says exports, mainly to India and China, could help the revenues rebound. However, the first shipment of coal in a celebrated trade deal with an Indian company is months behind schedule.