Cimmaron Coal Corp. v. Department of Revenue

COMBS, Judge.

Taxpayer appeals a Hopkins Circuit Court judgment affirming a Kentucky Board of Tax Appeals order that required the taxpayer to pay additional coal severance tax.

The facts are undisputed. The taxpayer raises three issues requiring interpretation of KRS Chapter 143 as it was enacted in 1972.

I. Whether the money taxpayer received from a purchaser complying with a contractual obligation to pay severance tax is included in “gross value”.

In 1972, the General Assembly enacted the coal severance tax which required one *437severing coal to pay a tax equal to 4% of the “gross value” of the…