Pike County loses lawsuit over coal severance tax process

PIKEVILLE, Ky. (AP) — A judge has dismissed a lawsuit filed by Pike County Fiscal Court against state officials over a new process it must go through to receive coal severance tax proceeds.

The Appalachian News-Express (http://bit.ly/1EaqZ09) cited court documents in reporting that the summary judgment was entered last week.

The lawsuit filed in Frankfort on Oct. 1 says the change was included in the budget bill approved by lawmakers during the 2014 session and was unconstitutional because it affected only one county.

State lawmakers said they agreed with the judge’s decision and defended the law they passed last year.

The new requirements include applying to the Department for Local Government for the grants from a pool of funds and spending the money only on "bona fide economic and industrial development projects."

___

Information from: Appalachian News-Express, http://www.news-expressky.com

©2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.