Bill > SB343

This bill modifies the distribution of coal severance tax revenues by gradually redirecting all excess funds from the general fund to the Coal Severance Tax Permanent Fund, starting in the fiscal year beginning July 1, 2027. Currently, coal severance taxes are allocated across multiple accounts, including 50% to a trust fund, 12% to a long-range building program, and smaller percentages to various state programs like library services, conservation districts, and agricultural development. Under the new provisions, after the existing allocations are made, all remaining revenue will be credited to the trust fund established under 17-6-203(6) instead of the general fund, effective July 1, 2027. Prior to this date, interest income from the coal severance tax permanent fund will continue to be statutorily appropriated to specific state departments and programs, such as agriculture, commerce, small business development, and export trade enhancement. The bill essentially ensures that more coal severance tax revenue will be preserved and invested in the state's permanent fund over time, potentially providing long-term financial stability for Montana.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1991