Montana legislation · 2025 Regular Session
Montana HB326: Establish a tax on electrical energy not produced by coal to match coal severance tax rate
Status: Failed, May 20, 2025
Establish a tax on electrical energy not produced by coal to match coal severance tax rate
What the bill says
A bill for an act entitled: "an act generally revising the taxation of coal and electrical energy produced in the state; creating the state energy resource severance act; providing for a tax on electrical energy production; providing an exemption from the electrical energy production tax for coal; providing the electrical energy production tax is based on sale price by the electrical energy producer; reducing the tax rate of the coal severance tax to match the electrical energy production tax rate; providing definitions…
From the engrossed text:
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING THE TAXATION OF COAL AND ELECTRICAL ENERGY PRODUCED IN THE STATE; CREATING THE STATE ENERGY RESOURCE SEVERANCE ACT; PROVIDING FOR A TAX ON ELECTRICAL ENERGY PRODUCTION; PROVIDING AN EXEMPTION FROM THE ELECTRICAL ENERGY PRODUCTION TAX FOR COAL; PROVIDING THE ELECTRICAL ENERGY PRODUCTION TAX IS BASED ON SALE PRICE BY THE ELECTRICAL ENERGY PRODUCER; REDUCING THE TAX RATE OF THE COAL SEVERANCE TAX TO MATCH THE ELECTRICAL ENERGY PRODUCTION TAX RATE; PROVIDING DEFINITIONS; PROVIDING FOR ADMINISTRATION AND ENFORCEMENT OF THE ELECTRICAL ENERGY PRODUCTION TAX BY THE DEPARTMENT OF REVENUE; CREATING STATE SPECIAL REVENUE ACCOUNTS FOR DISTRIBUTION OF ELECTRICAL ENERGY TAX REVENUE; ALLOCATING REVENUE TO A TRUST ACCOUNT; PROVIDING THAT REVENUE FROM THE TRUST ACCOUNT AND THE ELECTRICAL ENERGY PRODUCTION TAX MUST BE USED FOR LOCAL GOVERNMENT INFRASTRUCTURE PROJECTS TRADITIONALLY FUNDED BY COAL; PROVIDING CONTINGENT FUNDING FOR A STATE ENERGY AUTHORITY; PROVIDING RULEMAKING AUTHORITY; AMENDING SECTION 15-35-103, MCA; AND PROVIDING EFFECTIVE DATES, AN APPLICABILITY DATE, AND A CONTINGENT TERMINATION DATE." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: NEW SECTION. Section 1. Short title. [Sections 1 through 16] may be cited as the "State Energy Resource Severance Act". NEW SECTION. Section 2. Definitions. As used in [sections 1 through 16], unless the context clearly indicates otherwise, the following definitions …