15-35-103. (Temporary) Severance tax -- rates imposed. (1) Subject to the provisions of 15-35-202 allowing a new coal production incentive tax credit, a severance tax is imposed on each ton of coal produced in the state in accordance with the following schedule:
     
     Heating quality     Surface     Underground
     (Btu per pound     Mining      Mining
      of coal):
     Under 7,000     10% of value     3% of value
     7,000 and over     15% of value     4% of value

     (2) "Value" means the contract sales price.
     (3) The formula that yields the greater amount of tax in a particular case must be used at each point on the schedule.
     (4) A person is not liable for any severance tax upon 50,000 tons of the coal that the person produces in a calendar year, except that if more than 50,000 tons of coal are produced in a calendar year, the producer is liable for severance tax upon all coal produced in excess of the first 20,000 tons.
     (5) In addition to the exemption described in subsection (4), a person is not liable for any severance tax upon up to 2 million tons of coal that the person produces as feedstock for coal enhancement facilities in a calendar year, except if more than 2 million tons of coal are produced as feedstock for coal enhancement facilities in a calendar year, the producer is liable for severance tax on all coal produced as feedstock for these facilities in excess of the first 2 million tons.
     (6) A new coal production incentive tax credit may be claimed on certain coal as provided in 15-35-202. (Terminates December 31, 2005--sec. 5, Ch. 318, L. 1995.)

     15-35-103. (Effective January 1, 2006) Severance tax -- rates imposed. (1) Subject to the provisions of 15-35-202 allowing a new coal production incentive tax credit, a severance tax is imposed on each ton of coal produced in the state in accordance with the following schedule:
     (a) After June 30, 1988, and before July 1, 1990:
     
     Heating quality     Surface     Underground
     (Btu per pound     Mining     Mining
      of coal):
     Under 7,000     17% of value     3% of value
     7,000 and over     25% of value     4% of value
     
     (b) After June 30, 1990, and before July 1, 1991:
     
     Heating quality     Surface     Underground
     (Btu per pound     Mining     Mining
      of coal):
     Under 7,000     13% of value     3% of value
     7,000 and over     20% of value     4% of value
     
     (c) After June 30, 1991:
     
     Heating quality     Surface     Underground
     (Btu per pound     Mining     Mining
      of coal):
     Under 7,000     10% of value     3% of value
     7,000 and over     15% of value     4% of value
     
     (2) "Value" means the contract sales price.
     (3) The formula which yields the greater amount of tax in a particular case shall be used at each point on these schedules.
     (4) A person is not liable for any severance tax upon 50,000 tons of the coal he produces in a calendar year, except that if he produces more than 50,000 tons of coal in a calendar year, he will be liable for severance tax upon all coal produced in excess of the first 20,000 tons.
     (5) A new coal production incentive tax credit may be claimed on certain coal as provided in 15-35-202.

     History: En. 84-1314 by Sec. 3, Ch. 525, L. 1975; amd. Sec. 1, Ch. 164, L. 1977; R.C.M. 1947, 84-1314; amd. Sec. 2, Ch. 303, L. 1983; amd. Sec. 7, Ch. 636, L. 1985; amd. Sec. 3, Ch. 608, L. 1987; amd. Sec. 2, Ch. 31, L. 1989; amd. Sec. 2, Ch. 580, L. 1993; amd. Sec. 2, Ch. 318, L. 1995.