Change in Rate for Coal Excise Tax

 

Coal tax rate changes are in effect for producers of coal in the United States who are liable for the tax upon the first sale or use of coal. The increased rates are as follows for sales and use after December 31, 2019:

Underground mined coal (Form 720, Quarterly Excise Tax Return, IRS Nos. 36 and 37). The section 4121 rate of tax on coal from underground mines changed to the lower of $1.10 per ton or 4.4% of the sale price. From January 1, 2019, to December 31, 2019, the tax rate was 50 cents per ton or 2% of sales or use.

Surface mined coal (Form 720, Quarterly Excise Tax Return, IRS Nos. 38 and 39). The section 4121 rate of tax on coal from surface mines changed to the lower of 55 cents per ton or 4.4% of the sale price. From January 1, 2019, to December 31, 2019, the tax was 25 cents per ton or 2% of sales price for sales or use.

For more information, see Chapter 5 of Publication 510, Excise Taxes.
 

Related Topics