HB468 Alabama 2017 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2017
Title: Coal, severance tax, add'l, distrib for operation of Surface Mining Commission, termination of tax
Summary: HB468 creates a temporary extra coal severance tax to fund the Surface Mining Commission, with specific per-ton rates and a two-year sunset.
What This Bill Does
It adds an additional tax of 2.5 cents per ton for underground coal mining and 5 cents per ton for surface mining. The total tax for any person and their affiliates cannot exceed 2,000,000 tons per year. Revenue goes into a special fund to be used only for operating the Surface Mining Commission, collected by the Department of Revenue, and the fund does not revert. The tax expires two years after it becomes law, and penalties up to $1,000 can apply for noncompliance. The act becomes effective on the first day of the third month after passage and governor approval.

Who It Affects
Coal or lignite mining operators and their affiliates would pay the new tax up to a 2,000,000-ton cap per year.
The Surface Mining Commission and the Department of Revenue would receive and manage the new funds to operate and enforce the commission’s programs; funds are dedicated and nonreverting.

Key Provisions
Imposes additional severance taxes: 0.025 per ton for underground mining and 0.05 per ton for surface mining.
Cap: tax applies to a person and its affiliates up to a combined maximum of 2,000,000 tons per year.
Funds go to a special, nonreverting fund in the State Treasury, to be used exclusively for the Surface Mining Commission’s operation.
Tax is repealed two years after the act’s effective date.
Penalties of up to $1,000 per offense for noncompliance, assessed by the Department of Revenue.
The act is effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation