This bill proposes revisions to the distribution of funds generated from the coal severance tax in Montana, with the primary aim of increasing the amount allocated to the Coal Severance Tax Permanent Fund. Key changes include redirecting remaining allocations from the general fund to the Coal Severance Tax Permanent Fund, particularly after the fiscal year beginning July 1, 2027. The bill amends Section 15-35-108 of the Montana Code Annotated (MCA) to specify that, starting in 2027, all revenue from severance taxes will be credited to the trust fund established under 17-6-203(6) instead of the general fund.

Additionally, the bill maintains existing allocations for various programs, including a percentage for library services, conservation districts, and agricultural development, while also ensuring that 50% of total coal severance tax collections continues to be allocated to the trust fund created by the Montana Constitution. The amendments also clarify the allocation of interest income from the Coal Severance Tax Permanent Fund, which will be appropriated for specific programs until the specified fiscal year. Overall, the bill aims to enhance the financial resources available for long-term investments in Montana's coal severance tax initiatives.

Statutes affected:
LC Text: 15-35-108