Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Taxation topic
No spam. Unsubscribe anytime.
House committee rejects bill to impose 2% tax on electricity production; sponsors say measure protects Montana legacy funds
Summary
A proposal to create a 2% tax on most electricity production while exempting coal failed on a 50-50 vote in a House committee, after hours of debate over impacts on ratepayers, legacy severance funding and renewable energy development.
A proposal to create a new 2% tax on electricity production in Montana while leaving coal production exempt failed in a House committee on a 50-50 tie vote.
Rep. Brad Perry, the bill sponsor, told the committee the tax was intended to preserve “legacy dollars” that currently flow from the coal severance tax to universities, libraries, conservation districts and local governments. “When coal goes away, we lose 15%,” Perry said. “I'm asking to replace that with 2% ... to create dollars for our people in the future.”
Supporters framed the measure as a way to capture some value from wind and solar generation that, they said, is exported out of state. Rep. Aaron Kametz argued renewable projects currently receive large tax breaks and that renewable producers should “pay their fair share.”
Opponents said the bill would raise electricity prices for Montana ratepayers and slow renewable development. Rep. David Kohnauer said the bill “in its current form is increase prices for Montana ratepayers” and cited testimony in tax committee that the bill had no proponents and many opponents.
Rep. Thain also objected to treating coal differently, pointing to the bill text that imposes the 2% tax on all producers “except electrical generation from coal or coal-fired steam turbines.”
After debate, the committee voted on the motion from Rep. Perry that the committee recommend passage. The clerk recorded 50 ayes and 50 nays; the motion failed and the bill did not advance.
Why it matters: The measure sought to replace some of the fiscal role that coal severance payments have long played in state and local budgets as the state's energy mix changes. Supporters argued the change would create a modest, long-term revenue stream for communities; opponents said it would raise costs for households and hamper Montana's participation in renewable energy development.
What happened next: The committee recorded the tie and the bill failed to pass second reading in the committee. No subsequent floor action was recorded in the transcript.
Votes at a glance: The committee vote on House Bill 3 26 was 50-50; the motion recommending passage failed.
Meeting context: The item was considered during the Committee of the Whole for second reading. The exchange included extended policy arguments about energy transitions, tax fairness, and the distribution of legacy severance revenues.
