Revert revenue from coal tax to coal trust

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69th Legislature 2025 SB0343.2
- 1 - Authorized Print Version – SB 343
1 SENATE BILL NO. 343
2 INTRODUCED BY D. FERN
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING THE DISTRIBUTION OF MONEY FROM THE COAL
5 SEVERANCE TAX TO INCREASE THE AMOUNT IN THE COAL SEVERANCE TAX PERMANENT FUND;
6 REDIRECTING DISTRIBUTIONS OF REMAINING ALLOCATIONS FROM THE GENERAL FUND TO THE
7 COAL SEVERANCE TAX PERMANENT FUND; AND AMENDING SECTION 15-35-108, MCA.”
8
9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
10
11Section 1. Section 15-35-108, MCA, is amended to read:
12 "15-35-108. (Temporary) Disposal of severance taxes. Severance taxes collected under this
13 chapter must, in accordance with the provisions of 17-2-124, be allocated as follows:
14 (1) Fifty percent of total coal severance tax collections is allocated to the trust fund created by
15 Article IX, section 5, of the Montana constitution, including any excess funds pursuant to subsection (11). The
16 trust fund money must be deposited in the fund established under 17-6-203(6) and invested by the board of
17 investments as provided by law.
18 (2) The amount of 12% of coal severance tax collections is allocated to the major repair long-range
19 building program account established in 17-7-221.
20 (3) The amount of 0.90% in fiscal year 2020 and 0.93% in fiscal year 2021 and in each fiscal year
21 thereafter must be allocated for provision of basic library services for the residents of all counties through library
22 federations and for payment of the costs of participating in regional and national networking and must be
23 deposited in the basic library services account established in 22-1-202.
24 (4) The amount of 3.77% in fiscal year 2020 and 3.71% in fiscal year 2021 and in each fiscal year
25 thereafter must be allocated to the department of natural resources and conservation for conservation districts
26 and deposited in the conservation district account established in 76-15-106.
27 (5) The amount of 0.79% in fiscal year 2020 and 0.82% in fiscal year 2021 and in each fiscal year
28 thereafter must be allocated to the Montana Growth Through Agriculture Act and deposited in the growth
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69th Legislature 2025 SB0343.2
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1 through agriculture account established in 90-9-104.
2 (6) The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks
3 acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses,
4 must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas
5 described in 23-1-102.
6 (7) The amount of 0.95% must be allocated to the debt service fund type to the credit of the
7 renewable resource loan debt service fund.
8 (8) The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of
9 art in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding
10 unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other
11 cultural and aesthetic projects.
12 (9) The amount of 5.8% must be credited to the coal natural resource account established in 90-6-
13 1001(2).
14 (10) After the allocations are made under subsections (2) through (9), $250,000 for the fiscal year
15 must be credited to the coal and uranium mine permitting and reclamation program account established in 82-
16 4-244.
17 (11) (a) Subject to subsection (11)(b), all other revenue from severance taxes collected under the
18 provisions of this chapter must be credited to the general fund of the state until the fiscal year beginning July 1,
19 2027, and then to the trust fund established under 17-6-203(6).
20 (b) The interest income of the coal severance tax permanent fund that is deposited in the general
21 fund is statutorily appropriated, as provided in 17-7-502, on July 1 each year until the fiscal year beginning July
22 1, 2027, as follows:
23 (i) to the department of agriculture:
24 (A) $65,000 for the MONTANA cooperative development center;
25 (B) $900,000 for the growth through agriculture program provided for in Title 90, chapter 9;
26 (C) $600,000 for the Montana food and agricultural development program provided for in Title 80,
27 chapter 11;
28 (ii) to the department of commerce:
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69th Legislature 2025 SB0343.2
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1 (A) $325,000 for a small business development center;
2 (B) $50,000 for a small business innovative research program;
3 (C) $625,000 for certified regional development corporations;
4 (D) $500,000 for the Montana manufacturing extension center at Montana state university-
5 Bozeman; and
6 (E) $300,000 for export trade enhancement. (Terminates June 30, 2027--secs. 13, 15, 18, Ch. 343,
7 L. 2019.)
815-35-108. (Effective July 1, 2027) Disposal of severance taxes. Severance taxes collected under
9 this chapter must, in accordance with the provisions of 17-2-124, be allocated as follows:
10 (1) Fifty percent of total coal severance tax collections is allocated to the trust fund created by
11 Article IX, section 5, of the Montana constitution, including any excess funds pursuant to subsection (11). The
12 trust fund money must be deposited in the fund established under 17-6-203(6) and invested by the board of
13 investments as provided by law.
14 (2) The amount of 12% of coal severance tax collections is allocated to the major repair long-range
15 building program account established in 17-7-221.
16 (3) The amount of 0.90% in fiscal year 2020 and 0.93% in fiscal year 2021 and in each fiscal year
17 thereafter must be allocated for provision of basic library services for the residents of all counties through library
18 federations and for payment of the costs of participating in regional and national networking and must be
19 deposited in the basic library services account established in 22-1-202.
20 (4) The amount of 3.77% in fiscal year 2020 and 3.71% in fiscal year 2021 and in each fiscal year
21 thereafter must be allocated to the department of natural resources and conservation for conservation districts
22 and deposited in the conservation district account established in 76-15-106.
23 (5) The amount of 0.79% in fiscal year 2020 and 0.82% in fiscal year 2021 and in each fiscal year
24 thereafter must be allocated to the Montana Growth Through Agriculture Act and deposited in the growth
25 through agriculture account established in 90-9-104.
26 (6) The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks
27 acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses,
28 must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas
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69th Legislature 2025 SB0343.2
- 4 - Authorized Print Version – SB 343
1 described in 23-1-102.
2 (7) The amount of 0.95% must be allocated to the debt service fund type to the credit of the
3 renewable resource loan debt service fund.
4 (8) The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of
5 art in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding
6 unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other
7 cultural and aesthetic projects.
8 (9) The amount of 5.8% must be credited to the coal natural resource account established in 90-6-
9 1001(2).
10 (10) After the allocations are made under subsections (2) through (9), $250,000 for the fiscal year
11 must be credited to the coal and uranium mine permitting and reclamation program account established in 82-
12 4-244.
13 (11) All Commencing in the f iscal year beginning July 1, 2027, all ALL other revenue from
14 severance taxes collected under the provisions of this chapter must be credited to the general fund of the state
15 trust fund established under 17-6-203(6)."
16 - END -