The Inflation Reduction Act of 2022 made permanent higher tax rates funding the Black Lung Disability Trust Fund. Producers of coal in the United States are liable for the excise tax imposed on the first sale or use of coal. The increased tax rates are as follows for sales and uses after September 30, 2022. Underground-mined coal (Form 720, Quarterly Excise Tax Return, IRS Nos. 36 and 37). The rate of tax on coal from underground mines is increased to the lower of $1.10 per ton or 4.4% of the sale price (was 50 cents per ton or 2% of sales price). Surface-mined coal (Form 720, Quarterly Excise Tax Return, IRS Nos. 38 and 39). The rate of tax on coal from surface mines is increased to the lower of 55 cents per ton or 4.4% of the sale price (was 25 cents per ton or 2% of sales price). For more information, see Chapter 5 of Publication 510, Excise Taxes. Related Topics Excise tax
