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57-61 Coal Severance Tax

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CHAPTER 57-61COAL SEVERANCE TAX57-61-01. Severance tax upon coal - Imposition - In lieu of sales and use taxes -Payment to the tax commissioner. There is hereby imposed upon all coal severed for sale or<br>for industrial purposes by coal mines within the state a tax of thirty-seven and one-half cents per<br>ton of two thousand pounds [907.18 kilograms]. Such severance tax is in lieu of any sales or use<br>taxes imposed by law. Each coal mine owner or operator shall remit such tax for each month,<br>within twenty-five days after the end of each month, to the state tax commissioner upon such<br>reports and forms as the tax commissioner deems necessary.57-61-01.1. Severance tax exemption for coal used for space heating purposes andby the state and political subdivisions. No severance tax may be imposed on coal used<br>primarily for heating buildings in this state, including the heating of buildings with steam created<br>by the burning of coal, nor may any severance tax be imposed on coal used by the state or any<br>political subdivision of the state.The coal mine owner or operator shall require the personpurchasing the coal for heating of buildings, for resale to consumers for heating of buildings, or<br>for use by the state or any political subdivision of the state to certify the amount of the coal<br>purchased which will be used for heating purposes or by the state or any political subdivision.57-61-01.2. When coal considered severed. Coal is considered to be severed for thepurposes of this chapter when it is first removed from where it was placed by nature, unless<br>within thirty days of first removal it is placed into a long-term inventory storage deposit, in which<br>case it is considered to be severed when removed from the deposit or it is pledged as collateral<br>on a loan. A long-term inventory storage deposit is one which is so identified in a mining plan<br>approved by the public service commission pursuant to chapter 38-14.1 and which as part of that<br>plan is covered with soil and subjected to reclamation requirements during the time it serves as a<br>deposit and before coal is removed therefrom.57-61-01.3. Severance tax reduction for coal mined for certain users. The rate ofseverance tax determined and imposed as provided in section 57-61-01 must be reduced by fifty<br>percent if the coal is to be burned in a cogeneration facility which is designed to use renewable<br>resources as fuel to generate ten percent or more of its energy output measured in British<br>thermal units. The coal mine owner or operator must certify, or require the person purchasing<br>the coal to certify, that the coal will be used in the manner required by this section to qualify for<br>the reduced tax rate.57-61-01.4.(Effective through June 30, 2015) Severance and sales and use taxexemptions for coal used in certain plants. No state severance tax may be imposed on coal<br>used in, or coal used to produce steam that is used in, agricultural commodity processing<br>facilities as defined in subsection 4 of section 57-39.2-04.4 located within North Dakota or<br>adjacent states or any facility owned by the state or a political subdivision of the state. No state<br>severance tax may be imposed on coal purchased for improvement through the process of coal<br>beneficiation defined in subsection 2 of section 57-60-01 which is subsequently used in, or used<br>to produce steam that is used in, agricultural commodity processing facilities located within North<br>Dakota or adjacent states or any facility owned by the state or a political subdivision of the state.<br>The coal mine owner or operator shall require the person purchasing the coal to certify that<br>amount of coal purchased for use in agricultural commodity processing facilities or for<br>beneficiation and subsequent use in agricultural commodity processing facilities or any facility<br>owned by the state or a political subdivision of the state or to produce steam that is used in any<br>of those facilities.(Effective after June 30, 2015) Severance and sales and use tax exemptions for coalused in certain plants. No state severance tax may be imposed on coal used in agricultural<br>processing or sugar beet refining plants located within North Dakota or adjacent states. The coal<br>mine owner or operator shall require the person purchasing the coal to certify that amount of coal<br>purchased for agricultural processing or sugar beet refining purposes. Coal exempted from the<br>severance tax by this section is not subject to sales and use taxes.Page No. 157-61-01.5.Separate and additional coal severance tax - Lignite research,development, and marketing program - Continuing appropriation - Administration.1.There is imposed upon all coal severed for sale or for industrial purposes by coal<br>mines within the state a tax, separate from and additional to the tax imposed by<br>section 57-61-01, of two cents per ton of two thousand pounds [907.18 kilograms].<br>All of the provisions of this chapter for administration of the coal severance tax apply<br>to the tax imposed under this section. The state tax commissioner shall transfer<br>revenue from the tax imposed by this section to the state treasurer for deposit in a<br>special fund in the state treasury, known as the lignite research fund. Such moneys<br>must be used for contracts for land reclamation research projects and for research,<br>development, and marketing of lignite and products derived from lignite.Theindustrial commission shall adopt rules for submission and consideration of<br>research, development, and marketing proposals and entering into contracts under<br>the lignite research, development, and marketing program.2.The state treasurer shall deposit in the lignite research fund seventy percent of the<br>taxes collected and deposited subsequent to July 1, 1994, in the permanent trust<br>fund established by section 21 of article X of the Constitution of North Dakota and<br>shall, beginning in July 1991, no less than monthly, deposit in the lignite research<br>fund seventy percent of the taxes collected and deposited in the permanent trust<br>fund. All moneys in the lignite research fund as well as any moneys received from<br>federal and private sources for lignite research, development, and marketing,<br>including interest on all such moneys, are appropriated to the industrial commission,<br>and may be spent only within limits of legislative appropriations, for the<br>administration, development, and funding of the lignite research, development, and<br>marketing program.57-61-01.6. Lignite research fund - Continuing appropriation. All money deposited inthe lignite research fund is appropriated as a continuing appropriation to the industrial<br>commission, except as provided in section 54-17.5-05, to be used for the purposes stated in<br>chapter 54-17.5.57-61-01.7. Severance tax reduction for coal mined for out-of-state shipment. Forcoal subject to taxes under this chapter which is shipped out of state after June 30, 2001:1.The coal is subject to thirty percent of the taxes imposed under section 57-61-01 and<br>the entire revenue under this subsection must be deposited in the coal development<br>trust fund for use as provided in subsection 1 of section 57-62-02 and allocation to<br>the lignite research fund as provided in subsection 2 of section 57-61-01.5.2.In addition to the taxes under subsection 1, the coal may be subject to up to seventy<br>percent of the severance taxes imposed under section 57-61-01 at the option of the<br>county in which the coal is mined.The board of county commissioners, byresolution, may grant to the operator of a mine from which the coal is shipped out of<br>state a partial or complete exemption from this portion of the severance tax. Any tax<br>revenue from full or partial taxation under this subsection must be allocated to the<br>county under subsection 2 of section 57-62-02.3.Taxes imposed under section 57-61-01.5 apply to coal subject to this section and<br>must be allocated as provided in section 57-61-01.5.57-61-01.8. Tax reduction for coal burned in small boilers. Repealed by S.L. 2001,ch. 535, </p> <BR></DIV><!-- /.col.one --><!-- /.col.two --></DIV><!-- /.col.main --></DIV><!-- /div id = content --> <BR class=clear></DIV> <!-- /div id = livearea --> <DIV></DIV><!-- /.col.one --> <DIV></DIV><!-- /.col.main --> <DIV></DIV><!-- /#content --><BR class=clear> <DIV></DIV><!-- /#livearea --> <!-- Footer--> <DIV id=footer> <DIV class=container> <P class=copyright>Copyright &copy; 2012-2022 Laws9.Com All rights reserved. </P><!-- /.copyright --> <P class=footerlinks><A href="/contactus.html">Contact Us</A> | <A href="/aboutus.html">About Us</A> | <A href="/terms.html">Terms</A> | <A href="/privacy.html">Privacy</A></P><!-- /.footerlinks --> </DIV><!-- /.container --> </DIV><!-- /footer --> </BODY></HTML>