The Black Lung Excise Tax (BLET) on coal has been
in effect since 1978 and finances the Black Lung Disability Trust Fund. An estimated $14,000
million in coal excise tax revenues have gone into the fund through FY2004. The fund compensates
miners (as well as their survivors and dependents) afflicted with pneumoconiosis, or "black lung
disease," pays their medical costs, and finances the costs of administering the program. In 1998 a
U.S. district court ruled that the black lung excise tax on coal exports violated the export clause of
the U.S. Constitution. Of the estimated $1,300 million of taxes collected on coal exports, an
estimated $270 million would have to be (or has been) refunded. The remainder, approximately
$1,000 million of unconstitutionally collected taxes, cannot be refunded due to statute of limitation
of the filing of valid and timely claims. In the 108th Congress two bills have been introduced relating
to the black lung excise tax. The President's FY2005 budget proposes to repeal the scheduled
reduction in tax rates for coal sales after December 31, 2014. In addition to the black lung tax, coal
producers pay a federal Abandoned Mine Land Reclamation Fee -- absent reauthorization, this is
scheduled to expire on October 1, 2004 -- and state severance taxes. This report will not be updated.