A bill to amend the Internal Revenue Code of 1954 to impose a tax on the mining of coal and to establish a compensation program for damage attributable to mine subsidence.

Imposes a tax, under the Internal Revenue Code, upon the extraction of coal by any person from any place within the United States at the rate of one cent per ton of coal extracted.

Directs the Secretary of the Interior to establish a program of compensation for damage caused by coal mine subsidence. Authorizes any person who claims to have sustained damage as a result of the subsidence of any coal mine located within the United States to apply to the Secretary of the Interior for a determination of the amount of such damage, if any, attributable to coal mine subsidence. Directs the Secretary of the Interior to pay an amount equal to one-half of such damage to such applicant out of an account established in the Treasury consisting of amounts credited from the excise tax on the extraction of coal.