HB 858 revises Montana’s coal severance tax coal washing credit by extending the sunset dates for related statutory amendments. Specifically, it changes the termination date for the amendment revising the definition of “contract sales price” from July 1, 2017 to July 1, 2027, and it changes the termination date for the amendment defining “coal washing” and the related “contract sales price” amendment from July 1, 2017/2025 to July 1, 2027. The bill also directs the secretary of state to send a copy to each federally recognized tribal government in Montana and makes the act effective immediately upon passage and approval.
In practical terms, the bill would continue the legal framework supporting the coal washing credit and related coal severance tax definitions for an additional period, preserving the current tax treatment for coal producers that qualify under the credit. It does not create a new tax credit or change the rate of the severance tax itself; rather, it extends existing provisions so they remain in force longer under state law.
Impact
HB 858 would amend two prior laws—Chapter 433, Laws of 2009, and Chapter 1, Laws of 2015—by extending the expiration dates of coal severance tax-related amendments. This would keep in place the statutory definitions and credit-related provisions governing coal washing and contract sales price through July 1, 2027, affecting coal companies, tax administrators, and potentially local and state revenue tied to coal production. Because the bill was not enacted and died in process, the existing sunset dates would remain unchanged unless altered by future legislation.
Sentiment
The bill appears to have had some support in the House Taxation Committee, where it received a do pass recommendation by a 12-9 vote, suggesting a divided but favorable view among committee members. However, it later faced resistance in House Appropriations, where a motion to table passed 13-8, indicating stronger opposition or concern at that stage. Overall, the discussion and votes suggest the bill was supported by those favoring continuation of coal tax incentives, but opposed by members concerned about fiscal impact or policy direction.
Contention
The main point of contention was whether to extend a coal severance tax credit and related definitions that benefit the coal industry. Supporters likely viewed the extension as maintaining stability for coal operations and preserving an existing tax policy, while opponents likely questioned the need to continue a tax preference for coal, especially given revenue considerations and broader energy policy concerns. The split committee votes show that the issue was contested, with disagreement centered on tax policy, state revenue, and the appropriateness of extending coal-related incentives.