Bill > HB326

This bill establishes a new State Energy Resource Severance Act that creates a 2% tax on electrical energy production from sources other than coal, with several key provisions. The tax applies to electricity generated through water, wind, solar, or other means (except coal-fired generation and non-commercial or agricultural facilities), and will be calculated based on the gross sale price at the point of production. The revenue from this tax will be split between multiple accounts: 50% will go to a state energy resources trust account for state projects, 40% to a Montana energy authority operations account, and 10% to a Montana energy authority resource trust account. The bill also reduces the coal severance tax rate and creates a framework for administrative oversight, including requirements for electrical energy producers to file quarterly returns and pay taxes, with the Department of Revenue responsible for administering and enforcing the new tax. Importantly, sections related to the Montana energy authority accounts will only become effective if the legislature creates a state energy authority designed to develop and advise on energy production and transmission facilities. The new tax will apply to new electricity sales contracts entered into after the bill's effective date, which is January 1, 2026, with the goal of supporting local government infrastructure and potentially diversifying the state's energy economy.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1485