The New Mexico Court of Appeals has rejected a tax protest from coal company that sought a more than $6.4 million refund by claiming its coal was a chemical.
The Albuquerque Journal reports the court last week upheld the hearing officer’s decision against Delaware-based Peabody Coalsales Co.
The company sought the refund in 2015 under a 1966 state tax deduction that allows companies to be reimbursed for receipts from selling chemicals.
The state Taxation and Revenue Department disputed the claim. An administrative hearing officer ruled that coal sales were not intended to be covered by this tax incentive.
Attorneys for Peabody did not respond to the newspaper’s questions Monday.
The state Legislature this year approved a bill that tightens the tax deduction’s language.
Information from: Albuquerque Journal, http://www.abqjournal.com