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INTERNAL PROTOTYPE — NOT LEGAL ADVICE — DO NOT SEND

Vericoals, Inc. v. Revenue Cabinet, 869 S.W.2d 49 (1994)

Citation
Vericoals, Inc. v. Revenue Cabinet, 869 S.W.2d 49 (1994)
Parent Document
Vericoals, Inc. v. Revenue Cabinet, 869 S.W.2d 49 (1994)
Jurisdiction
Kentucky (state)
Effective Date
1994-01-28

Other Sections in This Document (31)

Full Text

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On August 1, 1981, Vericoals executed an extensive mining and sales agreement with Unit Coal, Inc., to mine the Broas seam, which was part of a bigger tract on which Vericoals held other mineral leases. The specifics of this agreement with regard to the respective roles of Vericoals and Unit Coal are what is at issue in this appeal. Unit Coal in turn contracted with Marpak to actually conduct the mining activities. It appears that, up until April 1984, Vericoals paid the severance tax on the gross amounts received by Unit for the sale of the coal. In March 1984, Vericoals was acquired by a new owner, Commercial Coal Company, which refused to pay the severance tax on the gross receipts of coal mined, instead paying severance tax on only the proceeds which Vericoals actually received from Unit. The contract terminated in 1985 when Unit completed its mining of the tract.