EKB News

While other taxes and fees have gradually increased and other coal states have asked the mining industry to contribute more, Kentucky hasn't, in about thirty years, touched its coal severance tax rate or its mine permit fees. Governor Beshear and the legislature say, although they could find themselves wrestling this summer with a $1 billion state budget shortfall and no matter how painful spending cuts might be, they will not consider higher coal taxes. This week, the House and Senate budget chairmen said coal is off-limits. They and the Kentucky Coal Association warn raising coal taxes would discourage mining and eliminate jobs in the state.