26 U.S.C. § 4121 — Imposition of tax

Page 2918 TITLE 26—INTERNAL REVENUE CODE § 4121 this section [enacting this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].’’ Subchapter B—Coal Sec. 4121. Imposition of tax. Editorial Notes PRIOR PROVISIONS A prior subchapter B consisted of sections 4111 to 4113, 4121, and 4131 of this title. Section 4111, acts Aug. 16, 1954, ch. 736, 68A Stat. 485; Sept. 2, 1958, Pub. L. 85–859, title I, § 111(a), 72 Stat. 1277, imposed a manufacturers excise tax of 5 percent on household type refrigerators, quick freeze or frozen storage units, or combinations, and a tax of 10 percent on self-contained air-conditioning units, prior to repeal by Pub. L. 89–44, title II, § 203, June 21, 1965, 79 Stat. 139, applicable with respect to articles sold on or after June 22, 1956. Section 4112, acts Aug. 16, 1954, ch. 736, 68A Stat. 485; Aug. 11, 1955, ch. 805, § 1(e), 69 Stat. 689, defined refrig- erator components, prior to repeal by Pub. L. 85–859, title I, § 111(b)(1), Sept. 2, 1958, 72 Stat. 1277, effective the first day of the first calendar quarter beginning more than 60 days after Sept. 2, 1958. Section 4113, act Aug. 16, 1954, ch. 736, 68A Stat. 485, related to exemptions for manufacturers of refrigerator components, prior to repeal by act Aug. 11, 1955, ch. 805, § 1(d), 69 Stat. 689, effective on the first day of the first month beginning more than 10 days after Aug. 11, 1955. Section 4121, acts Aug. 16, 1954, ch. 736, 68A Stat. 486; Sept. 2, 1958, Pub. L. 85–859, title I, § 112, 72 Stat. 1277, imposed a 5 percent tax on electric, gas, and oil house- hold appliances and their accessories, prior to repeal by Pub. L. 89–44, title II, § 203, June 21, 1965, 79 Stat. 139, applicable with respect to articles sold on or after June 22, 1965. Section 4131, act Aug. 16, 1954, ch. 736, 68A Stat. 486, imposed a 10 percent tax on electric light bulbs and tubes, prior to repeal by Pub. L. 89–44, title II, § 203, June 21, 1965, 79 Stat. 139, applicable with respect to ar- ticles sold on or after Jan. 1, 1965. § 4121. Imposition of tax (a) Tax imposed (1) In general There is hereby imposed on coal from mines located in the United States sold by the pro- ducer, a tax equal to the rate per ton deter- mined under subsection (b). (2) Limitation on tax The amount of the tax imposed by paragraph (1) with respect to a ton of coal shall not ex- ceed the applicable percentage (determined under subsection (b)) of the price at which such ton of coal is sold by the producer. (b) Determination of rates and limitation on tax For purposes of subsection (a)— (1) the rate of tax on coal from underground mines shall be $1.10, (2) the rate of tax on coal from surface mines shall be $.55, and (3) the applicable percentage shall be 4.4 per- cent. (c) Tax not to apply to lignite The tax imposed by subsection (a) shall not apply in the case of lignite. (d) Definitions For purposes of this subchapter— (1) Coal from surface mines Coal shall be treated as produced from a sur- face mine if all of the geological matter above the coal being mined is removed before the coal is extracted from the earth. Coal ex- tracted by auger shall be treated as coal from a surface mine. (2) Coal from underground mines Coal shall be treated as produced from an underground mine if it is not produced from a surface mine. (3) United States The term ‘‘United States’’ has the meaning given to it by paragraph (1) of section 638. (4) Ton The term ‘‘ton’’ means 2,000 pounds. (Added Pub. L. 95–227, § 2(a), Feb. 10, 1978, 92 Stat. 11; amended Pub. L. 97–119, title I, § 102(a), Dec. 29, 1981, 95 Stat. 1635; Pub. L. 99–272, title XIII, § 13203(a), (c), Apr. 7, 1986, 100 Stat. 312, 313; Pub. L. 99–514, title XVIII, § 1897(a), Oct. 22, 1986, 100 Stat. 2941; Pub. L. 100–203, title X, § 10503, Dec. 22, 1987, 101 Stat. 1330–446; Pub. L. 110–343, div. B, title I, § 113(a), Oct. 3, 2008, 122 Stat. 3824; Pub. L. 116–94, div. Q, title I, § 105(a), Dec. 20, 2019, 133 Stat. 3228; Pub. L. 116–260, div. EE, title I, § 149(a), Dec. 27, 2020, 134 Stat. 3056; Pub. L. 117–169, title I, § 13901(a), Aug. 16, 2022, 136 Stat. 2013.) Editorial Notes PRIOR PROVISIONS For prior section 4121, see Prior Provisions note set out preceding this section. AMENDMENTS 2022—Subsec. (e). Pub. L. 117–169 struck out subsec. (e) which related to reduction in amount of tax. 2020—Subsec. (e)(2)(A). Pub. L. 116–260 substituted ‘‘December 31, 2021’’ for ‘‘December 31, 2020’’. 2019—Subsec. (e)(2)(A). Pub. L. 116–94 substituted ‘‘De- cember 31, 2020’’ for ‘‘December 31, 2018’’. 2008—Subsec. (e)(2)(A). Pub. L. 110–343, § 113(a)(1), sub- stituted ‘‘December 31, 2018’’ for ‘‘January 1, 2014’’. Subsec. (e)(2)(B). Pub. L. 110–343, § 113(a)(2), sub- stituted ‘‘December 31 after 2007’’ for ‘‘January 1 after 1981’’ in introductory provisions. 1987—Subsec. (e)(2)(A). Pub. L. 100–203 substituted ‘‘2014’’ for ‘‘1996’’. 1986—Subsec. (a). Pub. L. 99–272, § 13203(a), amended subsec. (a) generally. Prior to amendment subsec. (a) read as follows: ‘‘There is hereby imposed on coal sold by the producer a tax at the rates of— ‘‘(1) 50 cents per ton in the case of coal from under- ground mines located in the United States, and ‘‘(2) 25 cents per ton in the case of coal from surface mines located in the United States.’’ Subsec. (b). Pub. L. 99–514 struck out ‘‘, in the case of sales during any calendar year beginning after Decem- ber 31, 1985’’ after ‘‘subsection (a)’’. Pub. L. 99–272, § 13203(a), amended subsec. (b) gen- erally. Prior to amendment subsec. (b), limitation on tax, read as follows: ‘‘The amount of the tax imposed by subsection (a) with respect to a ton of coal shall not exceed 2 percent of the price at which such ton of coal is sold by the producer.’’ Subsec. (e). Pub. L. 99–272, § 13203(c), substituted ‘‘Re- duction in amount of tax’’ for ‘‘Temporary increase in amount of tax’’ in heading and amended par. (1) gen- erally. Prior to amendment par. (1) read as follows: ‘‘Effective with respect to sales after December 31, 1981, and before the temporary increase termination date— Page 2919 TITLE 26—INTERNAL REVENUE CODE § 4121 ‘‘(A) subsection (a) shall be applied— ‘‘(i) by substituting ‘$1’ for ‘50 cents’, and ‘‘(ii) by substituting ‘50 cents’ for ‘25 cents’, and ‘‘(B) subsection (b) shall be applied by substituting ‘4 percent’ for ‘2 percent’.’’ 1981—Subsec. (e). Pub. L. 97–119 added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Pub. L. 117–169, title I, § 13901(b), Aug. 16, 2022, 136 Stat. 2013, provided that: ‘‘The amendment made by this section [amending this section] shall apply to sales in calendar quarters beginning after the date which is 1 day after the date of enactment of this Act [Aug. 16, 2022].’’ EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. EE, title I, § 149(b), Dec. 27, 2020, 134 Stat. 3056, provided that: ‘‘The amendment made by this section [amending this section] shall apply to sales after December 31, 2020.’’ EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. Q, title I, § 105(b), Dec. 20, 2019, 133 Stat. 3228, provided that: ‘‘The amendment made by this section [amending this section] shall apply on and after the first day of the first calendar month begin- ning after the date of the enactment of this Act [Dec. 20, 2019].’’ EFFECTIVE DATE OF 1986 AMENDMENTS Pub. L. 99–514, title XVIII, § 1897(b), Oct. 22, 1986, 100 Stat. 2941, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect as if included in the amendment made by section 13203 of the Consolidated Omnibus Budget Reconciliation Act of 1985 [section 13203 of Pub. L. 99–272, see note below].’’ Pub. L. 99–272, title XIII, § 13203(d), Apr. 7, 1986, 100 Stat. 313, provided that: ‘‘The amendments made by this section [amending this section] shall apply to sales after March 31, 1986.’’ EFFECTIVE DATE OF 1981 AMENDMENT Pub. L. 97–119, title I, § 102(b), Dec. 29, 1981, 95 Stat. 1635, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply to sales after December 31, 1981.’’ EFFECTIVE DATE Pub. L. 95–227, § 2(d), Feb. 10, 1978, 92 Stat. 12, provided that: ‘‘The amendments made by this section [enacting this section and amending sections 4218, 4221, 4293, and 6416 of this title] shall apply with respect to sales after March 31, 1978.’’ Pub. L. 95–227, § 5, Feb. 10, 1978, 92 Stat. 24, provided that: ‘‘Notwithstanding any other provision of this Act [see Short Title of 1978 Amendment note set out under section 1 of this title] to the contrary, no provision of this Act (including any amendment made by any such provision) shall take effect or apply unless an Act, en- acted after the date of enactment of this Act [Feb. 10, 1978], contains a provision, explicitly in satisfaction of the requirements of this section, which states that it is the intent of the Congress that the provisions of this Act shall take effect.’’ [Pub. L. 95–239, § 20(c), Mar. 1, 1978, 92 Stat. 106, pro- vided that: ‘‘In accordance with the requirements of section 5 of the Black Lung Benefits Revenue Act of 1977 [Pub. L. 95–227, set out above], it is hereby provided that such Act shall take effect in accordance with the provisions of such Act. The provisions of this sub- section are hereby deemed to be in explicit satisfaction of the requirements of section 5 of such Act.’’] SHORT TITLE OF 1978 AMENDMENT For short title of Pub. L. 95–227, Feb. 10, 1978, 92 Stat. 11, as the ‘‘Black Lung Benefits Revenue Act of 1977’’, see Short Title of 1978 Amendments note set out under section 1 of this title. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN COAL PRODUCERS AND EXPORTERS Pub. L. 110–343, div. B, title I, § 114, Oct. 3, 2008, 122 Stat. 3826, provided that: ‘‘(a) REFUND.— ‘‘(1) COAL PRODUCERS.— ‘‘(A) IN GENERAL.—Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, if— ‘‘(i) a coal producer establishes that such coal producer, or a party related to such coal pro- ducer, exported coal produced by such coal pro- ducer to a foreign country or shipped coal pro- duced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the re- quirements of paragraph (2), ‘‘(ii) such coal producer filed an excise tax re- turn on or after October 1, 1990, and on or before the date of the enactment of this Act [Oct. 3, 2008], and ‘‘(iii) such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enact- ment of this Act, then the Secretary shall pay to such coal producer an amount equal to the tax paid under section 4121 of such Code on such coal exported or shipped by the coal producer or a party related to such coal producer, or caused by the coal producer or a party related to such coal producer to be exported or shipped. ‘‘(B) SPECIAL RULES FOR CERTAIN TAXPAYERS.—For purposes of this section— ‘‘(i) IN GENERAL.—If a coal producer or a party related to a coal producer has received a judg- ment described in clause (iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subpara- graph (A)(i). ‘‘(ii) AMOUNT OF PAYMENT.—If a taxpayer de- scribed in clause (i) is entitled to a payment under subparagraph (A), the amount of such pay- ment shall be reduced by any amount paid pursu- ant to the judgment described in clause (iii). ‘‘(iii) JUDGMENT DESCRIBED.—A judgment is de- scribed in this subparagraph if such judgment— ‘‘(I) is made by a court of competent jurisdic- tion within the United States, ‘‘(II) relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and ‘‘(III) is in favor of the coal producer or the party related to the coal producer. ‘‘(2) EXPORTERS.—Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the In- ternal Revenue Code of 1986, and a judgment de- scribed in paragraph (1)(B)(iii) of this subsection, if— ‘‘(A) 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, ‘‘(B) such exporter filed a tax return on or after October 1, 1990, and on or before the date of the en- actment of this Act [Oct. 3, 2008], and ‘‘(C) such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act, then the Secretary shall pay to such exporter an amount equal to $0.825 per ton of such coal exported by the exporter or caused to be exported or shipped, or caused to be exported or shipped, [sic] by the ex- porter. ‘‘(b) LIMITATIONS.—Subsection (a) shall not apply with respect to exported coal if a settlement with the Page 2920 TITLE 26—INTERNAL REVENUE CODE § 4131 Federal Government has been made with and accepted by, the coal producer, a party related to such coal pro- ducer, 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, the term ‘settlement with the Federal Government’ shall not include any settlement or stipulation entered into as of the date of the enactment of this Act [Oct. 3, 2008], the terms of which contemplate a judgment concerning which any party has reserved the right to file an ap- peal, 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 or shipped coal has been paid to any person. ‘‘(d) DEFINITIONS.—For purposes of this section— ‘‘(1) COAL PRODUCER.—The term ‘coal producer’ means 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 con- tractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes 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. ‘‘(2) EXPORTER.—The term ‘exporter’ means a per- son, other than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller of such coal to export or ship such coal to a third party on behalf of the pro- ducer or seller of such coal and— ‘‘(A) is indicated in the shipper’s export declara- tion or other documentation as the exporter of record, or ‘‘(B) 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. ‘‘(3) RELATED PARTY.—The term ‘a party related to such coal producer’ means a person who— ‘‘(A) is related to such coal producer through any degree of common management, stock ownership, or voting control, ‘‘(B) is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, or ‘‘(C) 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. ‘‘(4) SECRETARY.—The term ‘Secretary’ means the Secretary of [the] Treasury or the Secretary’s des- ignee. ‘‘(e) TIMING OF REFUND.—With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this sec- tion 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. ‘‘(f) INTEREST.—Any refund paid pursuant to this sec- tion shall be paid by the Secretary with interest from the date of overpayment determined by using the over- payment rate and method under section 6621 of the In- ternal Revenue Code of 1986. ‘‘(g) DENIAL OF DOUBLE BENEFIT.—The payment under subsection (a) with respect to any coal shall not ex- ceed— ‘‘(1) in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, and ‘‘(2) in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be ex- ported by the exporter. ‘‘(h) APPLICATION OF SECTION.—This section applies only to claims on coal exported or shipped on or after October 1, 1990, through the date of the enactment of this Act [Oct. 3, 2008]. ‘‘(i) STANDING NOT CONFERRED.— ‘‘(1) EXPORTERS.—With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or adminis- trative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or roy- alty paid by the coal producer. ‘‘(2) COAL PRODUCERS.—With respect to coal pro- ducers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judi- cial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.’’ PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. Subchapter C—Certain Vaccines Sec. 4131. Imposition of tax. 4132. Definitions and special rules. Editorial Notes PRIOR PROVISIONS A prior subchapter C consisted of sections 4141 to 4143, 4151, and 4152 of this title. Section 4141, acts Aug. 16, 1954, ch. 736, 68A Stat. 487; Aug. 11, 1955, ch. 805, § 2(a), 69 Stat. 690; Sept. 2, 1958, Pub. L. 85–859, title I, § 113(a), 72 Stat. 1278, imposed a tax equivalent to 10 percent of selling price on radio and television receiving sets, phonographs, radio, tele- vision, and phonograph combinations, components, and phonograph records, prior to repeal by Pub. L. 89–44, title II, § 204, June 21, 1965, 79 Stat. 140, applicable with respect to articles sold on or after June 22, 1965. Section 4142, acts Aug. 16, 1954, ch. 736, 68A Stat. 487; Sept. 2, 1958, Pub. L. 85–859, title I, § 113(a), 72 Stat. 1278; Oct. 13, 1964, Pub. L. 88–653, § 6(a), 78 Stat. 1086, defined ‘‘radio and television components’’ and provided for- mula to determine selling price of rebuilt television picture tubes, prior to repeal by Pub. L. 89–44, title II, § 204, June 21, 1965, 79 Stat. 140, applicable with respect to articles sold on or after June 22, 1965. Section 4143, Pub. L. 85–859, title I, § 113(a), Sept. 2, 1958, 72 Stat. 1278, granted an exemption for certain types of communication, detection, and navigation equipment and components, prior to repeal by Pub. L. 89–44, title II, § 204, June 21, 1965, 79 Stat. 140, applicable with respect to articles sold on or after June 22, 1965. Section 4151, act Aug. 16, 1954, ch. 736, 68A Stat. 488, imposed a tax equivalent to 10 percent of selling price upon the sale of musical instruments, prior to repeal by Pub. L. 89–44, title II, § 204, June 21, 1965, 79 Stat. 140, applicable with respect to articles sold on or after June 22, 1965. Section 4152, act Aug. 16, 1954, ch. 736, 68A Stat. 488, related to exemption of musical instruments sold for religious or educational use, prior to repeal by Pub. L. 85–859, title I, § 119(b)(2), Sept. 2, 1958, 72 Stat. 1286, ef- fective on the first day of the first calendar quarter which began more than 60 days after Sept. 2, 1958. § 4131. Imposition of tax (a) General rule There is hereby imposed a tax on any taxable vaccine sold by the manufacturer, producer, or importer thereof.