House Bill No. [insert bill number] proposes significant revisions to the taxation framework for coal and electrical energy production in Montana, establishing the State Energy Resource Severance Act. The bill introduces a new tax on electrical energy production, set at a rate of 2% of the sale price, while exempting coal-generated electricity from this tax. Additionally, it creates special revenue accounts for the distribution of tax revenue, with funds allocated for local government infrastructure projects traditionally funded by coal. The bill also outlines the administration and enforcement of the new tax by the Department of Revenue, including provisions for record-keeping, compliance checks, and penalties for non-compliance.

Key changes include the deletion of the previous coal severance tax rate adjustments and the establishment of a trust account for state energy resources, which will receive 50% of the tax revenue. The bill also sets forth the creation of a Montana energy authority operations account to support energy diversification and development initiatives. The act is set to take effect on January 1, 2026, with certain provisions contingent upon the establishment of a state energy authority. Overall, the bill aims to modernize the state's energy taxation system while promoting local infrastructure and energy development.

Statutes affected:
LC Text: 15-35-103
HB0326_1(1): 15-35-103
HB0326_1(2): 15-35-103
HB0326_1(3): 15-35-103
HB0326_1(4): 15-35-103
HB0326_1(5): 15-35-103
HB0326_1(6): 15-35-103
HB0326_1: 15-35-103
HB0326_2(1): 15-35-103
HB0326_2(2): 15-35-103
HB0326_2(3): 15-35-103
HB0326_2(4): 15-35-103
HB0326_2(5): 15-35-103
HB0326_2(6): 15-35-103
HB0326_2(7): 15-35-103
HB0326_2(8): 15-35-103
HB0326_2(9): 15-35-103
HB0326_2: 15-35-103