This bill aims to revise the taxation framework for stripper oil wells in Montana by establishing a uniform tax rate for both pre-1999 and post-1999 stripper wells. It increases the threshold price of oil at which a reduced tax rate applies, raising it from $30 to $54 per barrel. The bill amends existing definitions and tax rates in Sections 15-36-303 and 15-36-304 of the Montana Code Annotated (MCA), specifically adjusting the definitions of "pre-1999 stripper well" and "post-1999 stripper well" to reflect the new price threshold. Additionally, it modifies the tax rates applicable to these wells, ensuring that both categories are taxed at the same rate when production falls within specified limits.

The bill also introduces new provisions regarding the effective date and applicability of the changes, stating that the act will take effect upon passage and approval, and will apply to oil production occurring on or after July 1, 2025. This legislative change is intended to provide a more equitable taxation structure for oil producers in Montana, potentially encouraging increased production and investment in the state's oil industry.

Statutes affected:
LC Text: 15-36-303, 15-36-304