I 
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 im-
posed on coal exported from the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SPECIAL RULES FOR REFUND OF THE COAL EX-
CISE 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— 
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(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 re-
turn 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 pe-
riod 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 pro-
ducer 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 
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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 Fed-
eral 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 con-
cerning 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 
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other disposition of the coal or the payment of any royal-
ties between the producer and third parties. The term in-
cludes 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 con-
tract, fee arrangement or any other agreement with a pro-
ducer 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 declara-
tion 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; 
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(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 require-
ments 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 pro-
ceeding concerning a claim for refund by a coal pro-
ducer of any Federal or State tax, fee, or royalty 
paid by the coal producer. 
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(2) With respect to coal producers, this section 
shall not confer standing upon a coal producer to 
commence, or intervene in, any judicial or adminis-
trative proceeding concerning a claim for refund by 
an exporter of any Federal or State tax, fee, or roy-
alty paid by the producer and alleged to have been 
passed on to an exporter. 
Æ 
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