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HOUSE BILL NO. 177
INTRODUCED BY HIBBARD C
BY REQUEST OF THE REVENUE OVERSIGHT COMMITTEE
A BILL FOR AN ACT ENTITLED: "AN ACT INCREASING THE ELECTRICAL ENERGY PRODUCERS' LICENSE TAX BY 0.06 CENT; EXEMPTING FROM THE INCREASE ELECTRICITY PRODUCED BY A QUALIFYING SMALL POWER PRODUCTION FACILITY UNDER AN EXISTING CONTRACT; PROVIDING THAT THE PROPOSED ACT BE SUBMITTED TO THE QUALIFIED ELECTORS OF MONTANA; AMENDING SECTION 15-51-101, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-51-101, MCA, is amended to read:
"15-51-101. Rate of tax -- electrical energy producers -- additional tax -- exemption. (1) In addition to the license
tax now provided by law, each person or other organization
now engaged in the generation, manufacture, or production of
electricity and electrical energy in the state of Montana, either through waterpower or by any other means, for barter, sale,
or exchange (and hereinafter referred to as the "producer") shall on or before the 30th day after each calendar quarter,
quarterly periods ending March 31, June 30, September 30, and December 31, render a statement to the department of
revenue showing the gross amount, except for actual and necessary plant use, required to produce the energy of electricity
and electrical energy produced, manufactured, or generated during the preceding calendar quarter without any deduction
and shall pay a license tax thereon on the production in the sum of $.0002 0.02 cent per kilowatt hour on all such electricity
and electrical energy generated, manufactured, or produced, measured at the place of production and as shown on the
statement required in the manner and within the time hereinafter provided by this chapter.
(2) (a) Except as provided in subsection (2)(b), an additional license tax is imposed in an amount equal to 0.06 cent per kilowatt hour produced as shown on the statement required by this chapter.
(b) Electrical energy produced by a qualifying small power production facility pursuant to a contract for the sale of electricity to a public utility or to a rural electric cooperative under the provisions of Title 69, chapter 3, part 6, is exempt from the tax imposed in subsection (2)(a). The exemption allowed by this subsection (2)(b) applies only to electricity sold under the terms of the contract or contracts in effect prior to [the effective date of this act]."
NEW SECTION. Section 2. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the election to be held in 1999 by printing on the ballot the full title of this act and the following:
SHALL THE ELECTRICAL ENERGY PRODUCERS' LICENSE TAX BE INCREASED TO PARTIALLY REPLACE LOST PROPERTY TAX REVENUE FROM ELECTRIC UTILITIES AND CERTAIN RURAL ELECTRIC COOPERATIVES IN THE FOLLOWING MANNER?
 FOR increasing the electrical energy producers' license tax by 0.06 cent to partially fund decreases in electric utilities' and certain rural electric cooperatives' property taxes.
 AGAINST increasing the electrical energy producers' license tax by 0.06 cent to partially fund decreases in electric utilities' and certain rural electric cooperatives' property taxes.
NEW SECTION. Section 3. Contingent voidness. (1) If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.
(2) If LC 380 is not passed and approved or if LC 539 is not approved by the electorate, then this act is void.
NEW SECTION. Section 4. Effective date. If approved by the electorate, this act is effective January 1, 2000.
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Latest Version of HB 177 (HB0177.01)
Processed for the Web on December 24, 1998 (8:21AM)
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