changes will make it easier for older coal-burning power plants to expand without adding pollution control equipment. The Bush administration also is seeking new subsidies and incentives for coal.
Table 7. Possible options for a coal severance or use tax in Texas
Texas Coal Use Tax
Texas Oil Severance Tax
Texas Gas Severance Tax
Based on 1999 coal production (53,000 thousand tons) $96.5 million
Based on 1999 coal use (102,000 thousand tons)
Assumes cost of $12.75 per/ton of Texas coal and $18.0 per/ton of all coal used Assumes cost of $12.75 per/ton of Texas coal and $18.0 per/ton of all coal used
7.5 percent of market value
Severance: $26.9 million Resource Excise: $3.7 million Gross Receipts: $17.7 million Conservation : $930,000 $85.1 million in FY 00
Severance: $35.5 million Resource Indemnity: $1 million
Severance: $163 million in Calendar Year 99: Environment: $8.1 million in CY 99.
Severance: $1.17/ton for old coal mines: $0.50/ton for new coal mines Resource Excise Tax: 0.75 percent Gross Receipts Tax: 5.75 percent Conservation Fund: 0.18 percent Severance: Surface: 7 percent Underground: 3.75 percent Severance: Surface 10 – 15 percent depending upon BTU Underground: 3-4 percent depending upon BTU Resource Indemnity Fund: $25 + 0.4 percent over $6,250 Severance: 5 percent of gross value or $0.75/ton minimum; 5 percent tax on value added Environmental Tax: $0.05/ton
4.6 percent of market value