XT 2009-02 - Severance Tax Increase on Coal for Certain
Permit Holders - Issued December 2009
The purpose of this release is to address a change in the
rate to the Reclamation Forfeiture Fund for the extraction of
The severance tax on coal is imposed on the entity extracting
the natural resource, further requiring an additional rate
for all permit holders that have not posted a full-cost bond
for the acreage on which the mining operation is being
Ohio Revised Code section 5749.02(A)(8) requires the chief of
the Division of Mineral Resources Management to monitor the
Reclamation Forfeiture Fund established under division (C)(2)
of R.C.1513.08 and certify to the tax commissioner the amount
of the balance of the fund as of the close of the biennium.
R.C. 5749.02(A)(8) further provides for adjustments to the
tax rate based on the ending balance of the fund.
On June 30, 2009, the Chief of the Division of Mineral
Resources Management certified that the Reclamation Fund has
a balance of less than $5 million. Therefore, R.C.
5749.02(A)(8) requires the rate to be adjusted to sixteen
cents ($0.16) per ton, imposed on all permit holders that
have not posted a bond. This rate is effective Jan. 1,
2010. The severance tax return will be redesigned to apply
the applicable tax rate for each location required.
Please contact the Excise Tax Section of this department with
Ohio Department of Taxation
P.O. Box 530
Columbus, Ohio 43216-0530
Telephone: (855) 466-3921
Fax: (206) 350-6722
Web site: tax.ohio.gov