Kentucky Revised Statutes

Ky. Rev. Stat. § 143.020 (2026)

Imposition of tax on severance or processing of coal

✓ current as of May 2026
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For the privilege of severing or processing coal, in addition to all other taxes imposed by law, a tax is hereby levied on every taxpayer engaged in severing and/or processing coal within this Commonwealth at the rate of four and one-half percent (4.5%) of the gross value of all coal severed and/or processed during the reporting period; except that the minimum tax for a reporting period shall be an amount determined by applying a rate of fifty cents ($0.50) per ton to the total number of tons severed during the reporting period. The minimum tax shall not apply to a taxpayer who only processes coal. Effective: July 1, 1978 History: Amended 1978 Ky. Acts ch. 189, sec. 2, July 1, 1978. -- Amended 1976 Ky. Acts ch. 84, sec. 1, effective March 29, 1976. -- Created 1972 Ky. Acts ch. 62, Pt. II, sec. 2.

Notes of Decisions
Cited in 13 cases (4 in the last 5 years), 1975–2024 · leading case: Univ. of the Cumberlands v. Pennybacker, 308 S.W.3d 668 (Ky. 2010).
Univ. of the Cumberlands v. Pennybacker, 308 S.W.3d 668 (Ky. 2010). · cites it 6× “The bonds are to be sold by the Kentucky Infrastructure Authority to private investors with the principal on the bonds paid from coal severance taxes levied pursuant to KRS 143.020 and the interest paid from the General Fund.”
Beshear v. Haydon Bridge Co., Inc., 304 S.W.3d 682 (Ky. 2010). · cites it 5× “In addition, it increased the funding component for the KWCFC by adding nineteen million dollars ($19,000,-000) annually from the coal severance tax generated by coal operations, KRS 143.020, payable in four equal quarterly installments of four million, seven hundred fifty…”
US Steel Min. Co., LLC v. Helton, 631 S.E.2d 559 (W. Va. 2006). · cites it 2× “]"); Ky.Rev.Stat. Ann. § 143.020 (1978) ("For the privilege of severing or processing coal, in addition to all other taxes imposed by law, a tax is hereby levied on every taxpayer engaged in severing and/or processing coal within this Commonwealth[.”
Foresight Coal Sales, LLC. v. Kent Chandler, 60 F.4th 288 (6th Cir. 2023). “Ky. Rev. Stat. Ann. § 143.020 . Compared to states with no severance tax, Kentucky coal is relatively expensive.”
Harrod Concrete & Stone Co. v. Crutcher, 458 S.W.3d 290 (Ky. 2015). “See KRS 143.020. and KRS143A.020 (taxing the severance or processing of coal and natural resources such as limestone at the same statutory rate without regard for geological distinction).”
Clay Cnty. v. Leslie Cnty., 531 S.W.2d 524 (Ky. Ct. App. 1975). “By KRS 143.020, enacted in 1972, Kentucky levies a “severance tax,” relating to coal, “on every taxpayer measured by the coal severed.”
Davis v. Am. Highwall Mining, LLC (E.D. Ky. 2020). · cites it 2× “AHM simply challenges whether the KRS §§ 143.020 and 143.025 severance tax documents that Davis mentions in his motion fall within the written request scope.”
Revenue Cabinet, Commonwealth of Kentucky v. Pyramid Mining Co., 741 S.W.2d 662 (Ky. Ct. App. 1987). “50% tax rate under KRS 143.020, we determine gross value (synonymous with gross income) and deduct transportation expense.”
Foresight Coal Sales, LLC. v. Kent Chandler (6th Cir. 2023). “Ky. Rev. Stat. Ann. § 143.020 . Compared to states with no severance tax, Kentucky coal is relatively expensive.”
Foresight Coal Sales, LLC. v. Schmitt (E.D. Ky. 2020). “§ 143.020. By contrast, Illinois imposes no severance tax on coal producers in Illinois.”
Foresight Coal Sales, LLC. v. Chandler (E.D. Ky. 2021). “§ 143.020. Illinois, by contrast, does not impose a severance tax on coal producers in Illinois.”
Foresight Coal Sales, LLC. v. Chandler (E.D. Ky. 2024). “§ 143.020 . The law’s practical effect is that a Kentucky coal producer receives an artificial 4.”
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