(a) There is levied a severance tax on all coal products severed from the ground in Tennessee. The tax is levied upon the entire production in the state regardless of the place of sale or the fact that delivery may be made outside the state.

Terms Used In Tennessee Code 67-7-103

  • coal products: means coal ore and any other substance that might be severed from the earth by the process of producing salable coal, by whatever method of severance used. See Tennessee Code 67-7-101
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) The tax shall accrue at the time the coal products are severed from the earth and in their natural or unprocessed state.
(c) The tax levied shall be a lien upon all coal products severed in this state and upon all property from which they are severed, including, but not limited to, mineral rights of the producer, and such lien shall be entitled to preference over all judgments, encumbrances or liens whatsoever created.
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