Internal Revenue Code:Sec. 4121. Imposition of tax

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 32 - MANUFACTURERS EXCISE TAXES
        Subchapter B - Coal
      

Statute

    Sec. 4121. Imposition of tax
 
    (a) Tax imposed
      (1) In general
        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).
      (2) Limitation on tax
        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.
    (b) Determination of rates and limitation on tax
      For purposes of subsection (a) -
        (1) the rate of tax on coal from underground mines shall be
      $1.10,
        (2) the rate of tax on coal from surface mines shall be $.55,
      and
        (3) the applicable percentage shall be 4.4 percent.
    (c) Tax not to apply to lignite
      The tax imposed by subsection (a) shall not apply in the case of
    lignite.
    (d) Definitions
      For purposes of this subchapter -
      (1) Coal from surface mines
        Coal shall be treated as produced from a surface mine if all of
      the geological matter above the coal being mined is removed
      before the coal is extracted from the earth.  Coal extracted by
      auger shall be treated as coal from a surface mine.
      (2) Coal from underground mines
        Coal shall be treated as produced from an underground mine if
      it is not produced from a surface mine.
      (3) United States
        The term ''United States'' has the meaning given to it by
      paragraph (1) of section 638.
      (4) Ton
        The term ''ton'' means 2,000 pounds.
    (e) Reduction in amount of tax
      (1) In general
        Effective with respect to sales after the temporary increase
      termination date, subsection (b) shall be applied -
          (A) by substituting ''$.50'' for ''$1.10'',
          (B) by substituting ''$.25'' for ''$.55'', and
          (C) by substituting ''2 percent'' for ''4.4 percent''.
      (2) Temporary increase termination date
        For purposes of paragraph (1), the temporary increase
      termination date is the earlier of -
          (A) January 1, 2014, or
          (B) the first January 1 after 1981 as of which there is -
            (i) no balance of repayable advances made to the Black Lung
          Disability Trust Fund, and
            (ii) no unpaid interest on such advances.
 

Sources

    (Added Pub. L. 95-227, Sec. 2(a), Feb. 10, 1978, 92 Stat. 11;
    amended Pub. L. 97-119, title I, Sec. 102(a), Dec. 29, 1981, 95
    Stat. 1635; Pub. L. 99-272, title XIII, Sec. 13203(a), (c), Apr. 7,
    1986, 100 Stat. 312, 313; Pub. L. 99-514, title XVIII, Sec.
    1897(a), Oct. 22, 1986, 100 Stat. 2941; Pub. L. 100-203, title X,
    Sec. 10503, Dec. 22, 1987, 101 Stat. 1330-446.)
 

Miscellaneous

                              PRIOR PROVISIONS
      For prior section 4121, see Prior Provisions note set out
    preceding this section.
                                 AMENDMENTS
      1987 - Subsec. (e)(2)(A). Pub. L. 100-203 substituted ''2014''
    for ''1996''.
      1986 - Subsec. (a). Pub. L. 99-272, Sec. 13203(a), amended
    subsec. (a) generally.  Prior to amendment subsec. (a) read as
    follows: ''There is hereby imposed on coal sold by the producer a
    tax at the rates of -
        ''(1) 50 cents per ton in the case of coal from underground
      mines located in the United States, and
        ''(2) 25 cents per ton in the case of coal from surface mines
      located in the United States.''
      Subsec. (b). Pub. L. 99-514 struck out '', in the case of sales
    during any calendar year beginning after December 31, 1985'' after
    ''subsection (a)''.
      Pub. L. 99-272, Sec. 13203(a), amended subsec. (b) generally.
    Prior to amendment subsec. (b), limitation on tax, read as follows:
    ''The amount of the tax imposed by subsection (a) with respect to a
    ton of coal shall not exceed 2 percent of the price at which such
    ton of coal is sold by the producer.''
      Subsec. (e). Pub. L. 99-272, Sec. 13203(c), substituted
    ''Reduction in amount of tax'' for ''Temporary increase in amount
    of tax'' in heading and amended par. (1) generally.  Prior to
    amendment par. (1) read as follows: ''Effective with respect to
    sales after December 31, 1981, and before the temporary increase
    termination date -
        ''(A) subsection (a) shall be applied -
          ''(i) by substituting '$1' for '50 cents', and
          ''(ii) by substituting '50 cents' for '25 cents', and
        ''(B) subsection (b) shall be applied by substituting '4
      percent' for '2 percent'.''
      1981 - Subsec. (e). Pub. L. 97-119 added subsec. (e).
                     EFFECTIVE DATE OF 1986 AMENDMENTS
      Section 1897(b) of Pub. L. 99-514 provided that: ''The amendment
    made by subsection (a) (amending this section) shall take effect as
    if included in the amendment made by section 13203 of the
    Consolidated Omnibus Budget Reconciliation Act of 1985 (section
    13203 of Pub. L. 99-272, see note below).''
      Section 13203(d) of Pub. L. 99-272 provided that: ''The
    amendments made by this section (amending this section) shall apply
    to sales after March 31, 1986.''
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 102(b) of Pub. L. 97-119 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply to sales
    after December 31, 1981.''
                               EFFECTIVE DATE
      Section 2(d) of Pub. L. 95-227 provided that: ''The amendments
    made by this section (enacting this section and amending sections
    4218, 4221, 4293, and 6416 of this title) shall apply with respect
    to sales after March 31, 1978.''
      Section 5 of Pub. L. 95-227 provided that: ''Notwithstanding any
    other provision of this Act (see Short Title of 1978 Amendment note
    set out under section 1 of this title) to the contrary, no
    provision of this Act (including any amendment made by any such
    provision) shall take effect or apply unless an Act, enacted after
    the date of enactment of this Act (Feb. 10, 1978), contains a
    provision, explicitly in satisfaction of the requirements of this
    section, which states that it is the intent of the Congress that
    the provisions of this Act shall take effect.''
      (Pub. L. 95-239, Sec. 20(c), Mar. 1, 1978, 92 Stat. 106, provided
    that: ''In accordance with the requirements of section 5 of the
    Black Lung Benefits Revenue Act of 1977 (Pub. L. 95-227, set out
    above), it is hereby provided that such Act shall take effect in
    accordance with the provisions of such Act. The provisions of this
    subsection are hereby deemed to be in explicit satisfaction of the
    requirements of section 5 of such Act.'')
                       SHORT TITLE OF 1978 AMENDMENT
      For short title of Pub. L. 95-227, Feb. 10, 1978, 92 Stat. 11, as
    the ''Black Lung Benefits Revenue Act of 1977'', see Short Title of
    1978 Amendments note set out under section 1 of this title.
             PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
      For provisions directing that if any amendments made by subtitle
    A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
    XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
    any plan, such plan amendment shall not be required to be made
    before the first plan year beginning on or after Jan. 1, 1989, see
    section 1140 of Pub. L. 99-514, as amended, set out as a note under
    section 401 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 4218, 4221, 4293, 6416,
    9501 of this title; title 30 section 1232.