Pike officials sue over coal severance tax process

FRANKFORT, Ky. (AP) — Officials in Pike County have filed suit against state officials over a new process it must go through to receive coal severance tax proceeds.

The Lexington Herald-Leader (http://bit.ly/1rZvLGZ) reports the lawsuit filed by Pike County Fiscal Court in Frankfort on Oct. 1 says the change was included in the budget bill approved by lawmakers during the 2014 session. The lawsuit says the change is unconstitutional because it affects only one county.

Pike officials say the change will "severely hamper" the county.

Democratic State Sen. Ray Jones of Pikeville said one reason for the change was that Pike County asked for $11 million in coal severance proceeds and had only about $4 million to spend.

He said lawmakers wanted to make sure money approved would be used for "viable projects."

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Information from: Lexington Herald-Leader, http://www.kentucky.com

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