2007 Montana Legislature

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HOUSE BILL NO. 823

INTRODUCED BY SMALL-EASTMAN, ANKNEY, STAHL, OLSON

 

AN ACT DIRECTING OIL AND NATURAL GAS PRODUCTION TAX REVENUE TO THE OIL, GAS, AND COAL NATURAL RESOURCE ACCOUNT; ALLOCATING FUNDS FROM THE ACCOUNT TO COUNTIES FOR THE MAINTENANCE OF ROADS AND BRIDGES; CLARIFYING THE USE OF COAL SEVERANCE TAX FUNDS DEPOSITED IN THE ACCOUNT; AMENDING SECTIONS 15-36-331 AND 90-6-1001, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

     Section 1.  Section 15-36-331, MCA, is amended to read:

     "15-36-331.  Distribution of taxes. (1) (a) For each calendar quarter, the department shall determine the amount of tax, late payment interest, and penalties collected under this part.

     (b)  For the purposes of distribution of oil and natural gas production taxes to county and school district taxing units under 15-36-332 and to the state, the department shall determine the amount of oil and natural gas production taxes paid on production in the taxing unit.

     (2)  (a) The amount of oil and natural gas production taxes collected for the privilege and license tax pursuant to 82-11-131 must be deposited, in accordance with the provisions of 15-1-501, in the state special revenue fund for the purpose of paying expenses of the board, as provided in 82-11-135.

     (b)  The amount of the tax for the oil, gas, and coal natural resource account established in 90-6-1001 must be deposited in the account.

     (3)  (a) For each tax year, the amount of oil and natural gas production taxes determined under subsection (1)(b) is allocated to each county according to the following schedule:

      2005     2006 and

           & #160;succeeding

          tax years

Big Horn     45.04%     45.05%

Blaine     58.11%     58.39%

Carbon     48.93%     48.27%

Chouteau     57.65%     58.14%

Custer     80.9%     69.53%

Daniels     49.98%     50.81%

Dawson     50.64%     47.79%

Fallon     41.15%     41.78%

Fergus     83.52%     69.18%

Garfield     48.81%     45.96%

Glacier     64.74%     58.83%

Golden Valley     57.41%     58.37%

Hill     65.33%     64.51%

Liberty     59.73%     57.94%

McCone     52.86%     49.92%

Musselshell     51.44%     48.64%

Petroleum     54.62%     48.04%

Phillips     53.78%     54.02%

Pondera     70.89%     54.26%

Powder River     62.17%     60.9%

Prairie     39.73%     40.38%

Richland     46.72%     47.47%

Roosevelt     46.06%     45.71%

Rosebud     38.69%     39.33%

Sheridan     47.54%     47.99%

Stillwater     54.35%     53.51%

Sweet Grass     60.24%     61.24%

Teton     48.4%     46.1%

Toole     57.14%     57.61%

Valley     54.22%     51.43%

Wibaux     48.68%     49.16%

Yellowstone     48.06%     46.74%

All other counties     50.15%     50.15%

     (b)  The oil and natural gas production taxes allocated to each county must be deposited in the state special revenue fund and transferred to each county for distribution, as provided in 15-36-332.

     (4)  The department shall, in accordance with the provisions of 15-1-501, distribute the state portion of oil and natural gas production taxes remaining after the distributions pursuant to subsections (2) and (3) as follows:

     (a)  for each fiscal year through the fiscal year ending June 30, 2011, to be distributed as follows:

     (i)  1.23% to the coal bed methane protection account established in 76-15-904;

     (ii) 2.95% to the reclamation and development grants special revenue account established in 90-2-1104;

     (iii) 2.95% to the orphan share account established in 75-10-743;

     (iv) 2.65% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 20-25-423;

     (v) 2% to the oil, gas, and coal natural resource account established in 90-6-1001; and

     (v)(vi)  all remaining proceeds to the state general fund;

     (b)  for fiscal years beginning after June 30, 2011, to be distributed as follows:

     (i)  4.18% to the reclamation and development grants special revenue account established in 90-2-1104;

     (ii) 2.95% to the orphan share account established in 75-10-743;

     (iii) 2.65% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 20-25-423;

     (iv) 2% to the oil, gas, and coal natural resource account established in 90-6-1001; and

     (iv)(v) all remaining proceeds to the state general fund."

 

     Section 2.  Section 90-6-1001, MCA, is amended to read:

     "90-6-1001.  Oil, gas, and coal natural resource account -- distribution. (1) There is an oil, gas, and coal natural resource account in the state special revenue fund. The collections allocated to the account from 15-35-108(7) and 15-36-331(2)(b) and (4) must be deposited in the account.

     (2) (a) By the dates referred to in 15-36-332(6), the department of revenue shall distribute the amount collected under 15-36-331(4) to counties based on county oil and gas production.

     (b) The funds distributed under this subsection (2) must be used to maintain roads and bridges in the counties that receive the funds.

     (3) Funds collected under 15-35-108(7) must be used to offset impacts created as a direct consequence of an increase or decrease in coal development or in the consumption of coal by a coal-using energy complex."

 

     Section 3.  Effective date. [This act] is effective on passage and approval.

 

     Section 4.  Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to oil and natural gas production taxes collected for oil and natural gas produced on or after April 1, 2007.

- END -

 


Latest Version of HB 823 (HB0823.ENR)
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