State gets surprise from Ala. Coal Assoc. - Montgomery Alabama news.

State gets surprise from Ala. Coal Assoc.

Photo Source: Alabama Coal Association Photo Source: Alabama Coal Association

Getting out from under a tax can certainly help an industry's bottom line, but the Alabama Coal Association is making sure a 2011 legislative time constraint that let a multi-million dollar tax expire doesn't harm the state.

Members of the Alabama Coal Association were recognized Friday by the governor's office for doing something they were no longer legally required to do: Pay the tax.

Governor Robert Bentley's office said the ACA members made a voluntary decision to continue with payments to the Alabama Department of Revenue.

Before the tax expired, it brought in 13.5 cents per ton of coal, or what would have amounted to an estimated $2.6 million this fiscal year for state and local governments and nonprofit organizations.

The tax was set for renewal, but the bill to renew the assessment died in the final hours of the 2011 Legislative Session. 

"Coal has provided jobs to generations of Alabamians," Governor Robert Bentley said. "Members of the Alabama Coal Association who voluntarily committed to continue making coal severance payments for the good of others are demonstrating all that is good about our state.

The Alabama Coal Association reported a total of 20.2 million tons of coal produced in Alabama in 2010 with an employment of just over 4,200 people.

INFORMATION SOURCE: Governor's Press Office

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