Senate Bill No. introduced by D. Fern aims to revise the distribution of funds generated from the coal severance tax in order to increase the amount allocated to the Coal Severance Tax Permanent Fund. The bill amends Section 15-35-108 of the Montana Code Annotated (MCA) to redirect remaining allocations from the general fund to the Coal Severance Tax Permanent Fund, effective July 1, 2027. Specifically, it stipulates that all revenue from severance taxes collected will be credited to the trust fund established under 17-6-203(6) instead of the general fund, thereby enhancing the financial resources available for the permanent fund.

Additionally, the bill includes provisions for the allocation of severance tax collections, maintaining existing percentages for various programs, such as the major repair long-range building program, basic library services, and conservation districts. Notably, it retains the allocation of 50% of total coal severance tax collections to the trust fund created by Article IX, section 5 of the Montana Constitution, while also allowing for the inclusion of any excess funds. The bill aims to ensure a more sustainable financial future for the Coal Severance Tax Permanent Fund and related initiatives.

Statutes affected:
LC Text: 15-35-108
SB0343_1(1): 15-35-108
SB0343_1(2): 15-35-108
SB0343_1(3): 15-35-108
SB0343_1(4): 15-35-108
SB0343_1: 15-35-108
SB0343_2(1): 15-35-108
SB0343_2(2): 15-35-108
SB0343_2(3): 15-35-108
SB0343_2(4): 15-35-108
SB0343_2(5): 15-35-108
SB0343_2(6): 15-35-108
SB0343_2(7): 15-35-108
SB0343_2(8): 15-35-108
SB0343_2: 15-35-108