Coal Gross Proceeds Tax
A statewide 5% yearly flat tax is imposed on coal gross proceeds, pursuant to 15-23-703. The gross proceeds of coal are determined by multiplying the number of tons produced by the contract sales price. One-half of the contract sales price of coal sold by a coal producer who extracts less than 50,000 tons of coal in a calendar year is exempt from taxation, pursuant to 15-6-203.
Filing Requirements
On or before March 31st of every year, each person or firm engaged in mining coal must file a statement of gross yield for every mine operated in the preceding year. The producer must pay 50% of the taxes due on or before November 30; the remaining 50% is due on or before May 31 of the following year. Forms are filed with the Department of Revenue. We strongly encourage you to file your Coal Gross Proceeds Tax (CGP) online through Tax Payer Access Point (TAP).
Distribution of Coal Gross Proceeds Tax
The tax is collected by the local county treasurer. The revenue is proportionally distributed to the appropriate taxing jurisdictions in which production occurred based on the total number of mills levied in fiscal year 1990.
