(a) The tax shall be levied for the use and benefit of local governments only and all revenues collected from the tax, except deductions for administration and collection provided for in this part, shall be allocated to the county from which such coal products were severed.

(b) All revenues collected under this part in a county in which coal products are severed, less an amount of one and one hundred twenty-five thousandths percent (1.125%) of the tax, which shall be retained by the department and credited to its current service revenue to cover the expenses of administration and collection, shall be remitted by the commissioner to that county in which the coal products were severed for the following specific purposes: one-half (½) of all revenues collected shall be used for the educational system or systems of the county, and the remaining one-half (½) of all revenues collected shall be used for highway and stream cleaning systems of the county.

(c) Any adjustment of taxes, interest or penalty with any county that is deemed necessary in order to correct any error may be made on a subsequent disbursement to that county.

(d) All of the moneys received from the payment of the assessment levied by § 67-7-104(b) shall be transferred to the treasurer for deposit in the coal mining protection fund, created by § 59-8-132, to be used for the administration and enforcement of the requirements of the Primacy and Reclamation Act of Tennessee, compiled in title 59, chapter 8, part 1.