{"data":{"id":"us-ky/krs-143.025","jurisdiction":"us-ky","citation":"KRS 143.025","heading":"Determination of taxable gross value of severed coal.","body":"(1) Taxpayers severing coal in Kentucky and partially or wholly processing the coal\noutside of Kentucky thereafter and taxpayers severing coal outside of Kentucky and\npartially or wholly processing the coal in Kentucky thereafter shall determine and\nreport the gross value of the coal by application of the following formula:\n(a) Determine the direct cost of severing or processing the coal in Kentucky as\ndefined in paragraphs (d) and (e) of this subsection.\n(b) Determine the direct cost of severing or processing the coal outside of\nKentucky as defined in paragraphs (d) and (e) of this subsection.\n(c) Exclude from paragraphs (a) and (b) of this subsection transportation expense\nand overhead cost as defined in paragraph (f) of this subsection.\n(d) Include in the dir ect cost of severing coal: black lung excise tax; contract\nmining, less transportation expense contained therein; cost depletion;\ndepreciation; development; equipment rental; explosives; fuel; labor and\nassociated expenses; maintenance; reclamation; royalt ies when based on tons\nsevered; and wheelage.\n(e) Include in the direct cost of processing coal: depreciation; equipment rental;\nfee processing; fuel; labor and associated expense; maintenance; and refuse\ndisposal.\n(f) Include in the overhead costs: commis sions; freight yard and siding expense;\ngeneral expense; general insurance and supervision; general office expense;\nidle time expense; inventory adjustments; mine closing expense; officers'\nsalaries; percentage depletion; quality analysis; scale and weighman's expense;\ntransportation expense and taxes, including sales, coal severance, property,\nfranchises, and state income taxes.\n(2) For purposes of computing the formula under this section, any expense which is not\ndirectly attributable to either the severi ng or processing of the coal shall be\nclassified as an overhead cost.\n(3) Direct cost determined in subsection (1)(a) of this section divided by the total of\ndirect cost determined in subsection (1)(a) of this section and the direct cost\ndetermined in subsection (1)(b) of this section and the result multiplied by the gross\nvalue of the coal shall equal the proportion of gross value which is subject to the tax\nlevied under KRS 143.020.\n(4) Any taxpayer determining taxable gross value as provided in this sect ion shall\nsubmit supporting computations and classifications of cost with each coal tax\nreturn, unless the department authorizes the taxpayer to submit the supporting\ninformation on a basis other than monthly.","path":["KRS Chapter 143"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=42626","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:36Z","sha256":"c85977a8c66f0319c0ca5136dd007947cf5219e0807ac985d803932f9beb9bb6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-143.024","next":"us-ky/krs-143.030"},"notice":"GroundRules: Original legal text. Not legal advice."}