PHOENIX (AP) — The Arizona Legislature is being asked to exempt coal used in a power plant on the Navajo Nation from the state's sales tax as a way to help make it more attractive for a new buyer.
The Navajo Generating Station in Page is set to close at the end of 2019 unless a new owner can be found. The company that owns the coal mine that supplies the plant is pushing the tax exemption approved by a House committee on a 6-3 vote Wednesday.
The tax cut would cost about $35 million in state revenue.
Peabody Energy's Kayenta Mine supplies the coal. Peabody lobbyist Tom Dorn told lawmakers the state's losses would be much greater if the mine and power plant closes.
— The legislation is House Bill 2003