Committee approves three-year phased payment to legacy fund in amended House Bill 12-79

The Finance and Taxation Committee approved an amendment to House Bill 12-79 that phases coal-conversion tax payments into the legacy fund and then gave the bill a due pass as amended.

Under the amendment, the coal industry would pay 50% of its coal-conversion tax liability between June 30, 2026, and June 30, 2029. After that three-year period the exemption would end and industry would be required to pay the full statutory tax percentage. Committee discussion noted that under current law the industry already pays 15% that is distributed to political subdivisions and also continues to remit the lignite research tax; those existing payments were not changed by the amendment. Committee testimony estimated the 50% payment would equate to about $10.5 million redirected to the legacy fund over the phased period.

Senator Wallin moved the amendment and Senator Patton seconded; the amendment was approved by roll call. Committee members discussed the rationale for directing these revenues to the legacy fund as an investment vehicle for finite-resource taxes rather than using the receipts for general fund operations. Senator Patton said he would support the amendment to advance the bill to conference committee but flagged concerns to be addressed in conference.

The committee then voted 5-1 to give House Bill 12-79 a due pass as amended and referred it to Appropriations; the record shows one no vote. Committee discussion noted the bill will need a carrier for floor transmittal and possible additional technical cleanup depending on other actions in November.