26 U.S.C. § 4121: Imposition of tax

There is hereby imposed on coal from mines located in the United States sold by the producer, a tax equal to the rate per ton determined under subsection (b). The amount of the tax imposed by paragraph (1) with respect to a ton of coal shall not exceed the applicable percentage (determined under subsection (b)) of the price at which such ton of coal is sold by the producer. the rate of tax on coal from underground mines shall be $1.10, the rate of tax on coal from surface mines shall be $.55, and the applicable percentage shall be 4.4 percent. The tax imposed by subsection (a) shall not apply in the case of lignite. Coal shall be treated as produced from a surface mine if all of the geological matter above the coal being mined is removed before the coal is extracted from the earth. Coal extracted by auger shall be treated as coal from a surface mine. Coal shall be treated as produced from an underground mine if it is not produced from a surface mine. The term “United States” has the meaning given to it by paragraph (1) of section 638. The term “ton” means 2,000 pounds. a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign country or shipped coal produced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the requirements of paragraph (2), such coal producer filed an excise tax return on or after October 1, 1990 , and on or before the date of the enactment of this Act [ Oct. 3, 2008 ], and such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act, If a coal producer or a party related to a coal producer has received a judgment described in clause (iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subparagraph (A)(i). If a taxpayer described in clause (i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount paid pursuant to the judgment described in clause (iii). is made by a court of competent jurisdiction within the United States, relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and is in favor of the coal producer or the party related to the coal producer. an exporter establishes that such exporter exported coal to a foreign country or shipped coal to a possession of the United States, or caused such coal to be so exported or shipped, such exporter filed a tax return on or after October 1, 1990 , and on or before the date of the enactment of this Act [ Oct. 3, 2008 ], and such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act, then the Secretary shall pay to such exporter an amount equal to $0.825 per ton of such coal exported by the exporter or caused to be exported or shipped, or caused to be exported or shipped, [sic] by the exporter. Subsection (a) shall not apply with respect to exported coal if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, or the exporter, of such coal, as of the date that the claim is filed under this section with respect to such exported coal. For purposes of this subsection, the term ‘settlement with the Federal Government’ shall not include any settlement or stipulation entered into as of the date of the enactment of this Act [ Oct. 3, 2008 ], the terms of which contemplate a judgment concerning which any party has reserved the right to file an appeal, or has filed an appeal. No refund shall be made under this section to the extent that a credit or refund of such tax on such exported or shipped coal has been paid to any person. The term ‘coal producer’ means the person in whom is vested ownership of the coal immediately after the coal is severed from the ground, without regard to the existence of any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes any person who extracts coal from coal waste refuse piles or from the silt waste product which results from the wet washing (or similar processing) of coal. is indicated in the shipper’s export declaration or other documentation as the exporter of record, or actually exported such coal to a foreign country or shipped such coal to a possession of the United States, or caused such coal to be so exported or shipped. is related to such coal producer through any degree of common management, stock ownership, or voting control, is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, or has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third party on behalf of such coal producer. The term ‘Secretary’ means the Secretary of [the] Treasury or the Secretary’s designee. With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this section are met not later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for refund shall be paid not later than 180 days after the Secretary makes such determination. Any refund paid pursuant to this section shall be paid by the Secretary with interest from the date of overpayment determined by using the overpayment rate and method under section 6621 of the Internal Revenue Code of 1986. in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, and in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter. This section applies only to claims on coal exported or shipped on or after October 1, 1990 , through the date of the enactment of this Act [ Oct. 3, 2008 ]. With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or royalty paid by the coal producer. With respect to coal producers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.”