Colorado appeals court sides with coal producers, knocks down hike in state's coal severance tax

摘要

The Colorado Court of Appeals knocked down a hike in the state's coal severance tax, finding the increased levy violated a Taxpayers Bill of Rights (TABOR) statute. TABOR precludes increasing the coal severance tax rate without voter approval, the appeals court held. Colorado has had a severance tax on coal in place since 1977. The numerical tax rate changed over the years, but the formula for calculating it remained constant: a base rate (currently 36 cents per ton) is periodically adjusted based on changes to a broad economic index.