The Black Lung Excise Tax on Coal (CRS Report for Congress)
| Release Date |
Sept. 15, 2004 |
| Report Number |
RS21935 |
| Report Type |
Report |
| Authors |
Salvatore Lazzari, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
Summary:
The Black Lung Excise Tax (BLET) on coal has been in effect since 1978 and finances the Black
Lung Disability Trust Fund. An estimated $14,000 million in coal excise tax revenues have gone
into the fund through FY2004. The fund compensates miners (as well as their survivors and
dependents) afflicted with pneumoconiosis, or "black lung disease," pays their medical costs, and
finances the costs of administering the program. In 1998 a U.S. district court ruled that the black
lung excise tax on coal exports violated the export clause of the U.S. Constitution. Of the estimated
$1,300 million of taxes collected on coal exports, an estimated $270 million would have to be (or
has been) refunded. The remainder, approximately $1,000 million of unconstitutionally collected
taxes, cannot be refunded due to statute of limitation of the filing of valid and timely claims. In the
108th Congress two bills have been introduced relating to the black lung excise tax. The President's
FY2005 budget proposes to repeal the scheduled reduction in tax rates for coal sales after December
31, 2014. In addition to the black lung tax, coal producers pay a federal Abandoned Mine Land
Reclamation Fee -- absent reauthorization, this is scheduled to expire on October 1, 2004 -- and state
severance taxes. This report will not be updated.
