Voices from Kentucky: Severance Tax Creates Jobs

Kentucky now collects a coal severance tax, approximately 5 percent levied on every ton of coal.

In the past, 50 percent of the revenue has been allocated for use in coal affected counties. Now, lawmakers are trying to bring all the revenue back to these areas to help create jobs.


“Returning the coal severance money to these counties could be a critical step in job creation, economic development, and, frankly, in the future of eastern Kentucky.

-Senator Ray S. Jones


We have to have the infrastructures in place in order to get companies and investments to locate in our region. The improvements from these funds will lead to the creation of new jobs.”

-Senator Johnny Ray Turner


“The coal severance revenue should be allocated for improvements to the infrastructures to better equip these counties to attract new business and industry … Better roads and bridges, modern water and sewer lines/facilities, and enhanced public safety are components necessary for developing an area and making it a viable place for new businesses and industry to locate.

-Senator Ray S. Jones


“This will help us diversify our economy and increase job prospects while also ensuring basic services are provided to our citizens.”

-Letcher County Judge Executive Jim Ward


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