HB4535 - Provide valuation limitations to the Tax Commissioner for coal properties and to clarify the penalty for non-filers

1 Co-Sponsor

The purpose of this bill is to require assessments made on or after July 1, 2025 to provide that the arithmetic means for annual production and average coal price to value coal properties shall be based upon the full calendar year immediately preceding the July 1st assessment date; to provide that the Tax Commissioner shall utilize an average coal density of 1800 tons per acre foot, unless clear and convincing evidence is submitted by a taxpayer establishing a lower density value; to provide that density information reported on returns, due on or before May 1 of each year, shall be used to determine values for the immediately following July 1 assessments; to provide that the Tax Commissioner shall take into consideration economic viability and engineering considerations when establishing values for coal properties; to provide that coal beds which are of a thickness of less than 35 inches shall not be classified as mineable coal for valuation for property tax purposes unless there is clear and convincing evidence to the contrary; to provide that no permitted coal seam may be classified for taxation as active until actual depletion of coal commences under a permit; to provide that for any owner, operator, or producer which fails to make a return within the time required, any and all penalties imposed shall be equally and uniformly applied across all forms of industrial property and natural resources property; and to specify an effective date.