
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4121]

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

(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.)


                            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 [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 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.

                  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.
