02-16-2009, 11:51 AM
Okay Kentuckians... we have just enacted a tax on alcohol. Many people do not want this money spread evenly among all counties "wet" AND "dry"... so let me shed some light on why the tax money collected should be fairly divided among everyone...
I know for a certainty that people from "dry" places will travel to "wet" places simply and solely to purchase something of the "alcoholic nature" ... for whatever reason. (let's don't waste time on that) They obviously pay for what they purchase and are taxed. That tax money should be evenly distributed.
Then here's another reason NOT to allow those "wet" flatlanders, who are advocating a split of the alcohol tax dollars be kept solely by the 'wet" counties, be thwarted in their attempt to "hoodwink", "schiester", "hoo-doo" ("E" - All of the above) the entire Commonwealth of Kentucky...
I know for a certainty that people from "dry" places will travel to "wet" places simply and solely to purchase something of the "alcoholic nature" ... for whatever reason. (let's don't waste time on that) They obviously pay for what they purchase and are taxed. That tax money should be evenly distributed.
Then here's another reason NOT to allow those "wet" flatlanders, who are advocating a split of the alcohol tax dollars be kept solely by the 'wet" counties, be thwarted in their attempt to "hoodwink", "schiester", "hoo-doo" ("E" - All of the above) the entire Commonwealth of Kentucky...
Coal severance began about 1980, or perhaps a year or two earlier. It was imposed in lieu of a tax on unmined coal owing to the difficulty in determining who owned it, and what was or wasn't mineable. Obviously, if mined and sold it was deemed worth mining, hence on comes the severance tax.
But then only one or two years later the Fair Tax and Spenders of the Commonwealth said NOT FAIR! People with real estate and improvements pay taxes on those assets and ALL things of value MUST be taxed equitably, so around 1983 we also get hit with an unmined mineral tax. . . which only applies to coal, not to limestone, sand and gravel nor oil and gas. . . ALL in the name of Fair and Equitable Haw Haw HAW !
And coal in the ground is taxed as follows:
If 24" or thicker deemed to have a value; if 24" or thicker and permitted for mining deemed to have more value and taxed at a higher rate; if 24" or thicker and mined and sold, in the year that occurs the highest rate of taxation is imposed on that tonnage.
Moreover, if thinner than 24" but permitted, mined or even if coal of this thinner type is being mined in the area, the thin stuff is also deemed to be an asset and taxable. This goes for each and every seam of coal for which evidence such as core holes or other exploration data exists in the area.
And coal in the ground is taxed as follows:
If 24" or thicker deemed to have a value; if 24" or thicker and permitted for mining deemed to have more value and taxed at a higher rate; if 24" or thicker and mined and sold, in the year that occurs the highest rate of taxation is imposed on that tonnage.
Moreover, if thinner than 24" but permitted, mined or even if coal of this thinner type is being mined in the area, the thin stuff is also deemed to be an asset and taxable. This goes for each and every seam of coal for which evidence such as core holes or other exploration data exists in the area.
This means no one wants to do exploration work in order to claim ":No Knowledge of Mineable Thicknesses of Coal". And one final out is to claim either an Unmineable Remnant, i.e., tonnage too small to justify permitting and development costs to make a reasonable profit ( this latter never defined in the law) or Yes, it's big, thick BUT DIRTY and high reject (ash) coal requires washing, so again the No Hope of a reasonable profit makes it have a zero asset value.
As for what may have been collected, the severance tax is capped at $1.05 per ton and KY has been spitting out something in excess of 100,000,000 (one hundred million) tons a year times call it 25 years or at a minimum at least 2.5 Billion dollars.
Ya know, there's not alot of coal mined in Lexington, Louisville, Covington.... Georgetown, Frankfort, that area.... yet all the coal producing areas have been forced to share with all those non-producing areas since its inception....
I hope this might help to "enlighten" the general public as to "why" an alcohol tax should be shared among every county in the Commonwealth... you know I don't have an issue with taxing the horse racing industry either ... maybe they can be NEXT... you know when a block of coal is removed from our soil, it's gone... horses are bred and born everyday along with production of beer and alcohol...
Anyway, i thought this might make for a healthy discussion!