[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5097 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5097

    To facilitate and expedite direct refunds to coal producers and 
exporters of the excise tax unconstitutionally imposed on coal exported 
                        from the United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 5, 2006

Mr. Davis of Kentucky (for himself, Mr. Lewis of Kentucky, Mr. English 
 of Pennsylvania, and Mr. Rogers of Kentucky) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To facilitate and expedite direct refunds to coal producers and 
exporters of the excise tax unconstitutionally imposed on coal exported 
                        from the United States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN 
              COAL PRODUCERS AND EXPORTERS.

    (a) In General.--Notwithstanding sections 6416(a)(1) and (c) and 
6511 of the Internal Revenue Code of 1986, if--
            (1) a coal producer establishes that such coal producer, or 
        a party related to such coal producer, exported coal produced 
        by such coal producer to a foreign country or shipped coal 
        produced by such coal producer to a possession of the United 
        States, the export or shipment of which was other than through 
        an ``exporter'' as defined in this Act, or an exporter 
        establishes that such exporter exported coal to a foreign 
        country or shipped coal to a possession of the United States, 
        or caused such coal to be so exported or shipped,
            (2) such coal producer or exporter filed a return on or 
        after October 1, 1990, and on or before the date of enactment 
        of this Act, and
            (3) such coal producer or exporter files a claim for refund 
        not later than the close of the 30-day period beginning on the 
        date of the enactment of this Act,
then the Secretary of the Treasury shall pay to such coal producer an 
amount equal to the tax paid under section 4121 of such Code on such 
coal exported by the coal producer or a party related to such coal 
producer, or to such exporter an amount equal to $0.825 per ton of such 
coal exported by the exporter or such coal that the exporter caused to 
be exported. This section applies only to claims on coal exported on or 
after October 1, 1990, through the date of enactment of this Act.
    (b) Limitations.--Subsection (a) shall not apply with respect to 
exported coal if a credit or refund of tax imposed by section 4121 of 
such Code on such coal has been allowed or made to, or if a settlement 
with the Federal Government has been made with and accepted by, the 
coal producer, a party related to such coal producer or the exporter, 
of such coal, as of the date that the claim is filed under this section 
with respect to such exported coal. For purposes of this subsection, a 
``settlement with the Federal Government'' shall not include any 
settlement or stipulation entered into as of the date of enactment of 
this Act, the terms of which contemplate a judgment concerning which 
any party has reserved the right to file an appeal, or has filed an 
appeal.
    (c) Subsequent Refund Prohibited.--No refund shall be made under 
this section to the extent that a credit or refund of such tax on such 
exported coal has been paid to any person.
    (d) ``Coal Producer'' Defined.--For purposes of this section ``coal 
producer'' shall mean the person in whom is vested ownership of the 
coal immediately after the coal is severed from the ground, without 
regard to the existence of any contractual arrangement for the sale or 
other disposition of the coal or the payment of any royalties between 
the producer and third parties. The term includes any person who 
extracts coal from coal waste refuse piles or from the silt waste 
product which results from the wet washing (or similar processing) of 
coal.
    (e) ``Exporter'' Defined.--For purposes of this section 
``exporter'' shall mean a person, other than a ``coal producer'' as 
defined in this Act, who does not have a contract, fee arrangement or 
any other agreement with a producer or seller of such coal to sell or 
export such coal to a third party on behalf of the producer or seller 
of such coal and--
            (1) is indicated in the shipper's export declaration or 
        other documentation as the exporter of record, or
            (2) actually exported such coal to a foreign country or 
        shipped such coal to a possession of the United States, or 
        caused such coal to be so exported or shipped.
    (f) Related Party Defined.--For purposes of this section, ``a party 
related to such coal producer'' shall mean a person who--
            (1) is related to such coal producer through any degree of 
        common management, stock ownership, or voting control;
            (2) is related (within the meaning of section 144(a)(3) of 
        such Code) to such coal producer; or
            (3) has a contract, fee arrangement, or any other agreement 
        with such coal producer to sell such coal to a third party on 
        behalf of such coal producer.
    (g) Timing of Refund.--With respect to any claim for refund filed 
pursuant to this section, the Secretary of the Treasury shall determine 
whether the requirements of this section are met not later than 180 
days after such claim is filed. If the Secretary determines that the 
requirements of this section are met, the claim for refund shall be 
paid not later than 180 days after the Secretary makes such 
determination.
    (h) Interest.--Any refund paid pursuant to this section shall be 
paid by the Secretary of the Treasury with interest from the date of 
overpayment determined by using the overpayment rate and method under 
section 6621 of such Code.
    (i) Standing not Conferred.--
            (1) With respect to exporters, this section shall not 
        confer standing upon an exporter to commence, or intervene in, 
        any judicial or administrative proceeding concerning a claim 
        for refund by a coal producer of any Federal or State tax, fee, 
        or royalty paid by the coal producer.
            (2) With respect to coal producers, this section shall not 
        confer standing upon a coal producer to commence, or intervene 
        in, any judicial or administrative proceeding concerning a 
        claim for refund by an exporter of any Federal or State tax, 
        fee, or royalty paid by the producer and alleged to have been 
        passed on to an exporter.
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