Montana committee hears bill to tax most electricity generation; industry warns 10% levy would deter investment

Summary

Representative Gary Perry defended HB 326 as a way to capture "legacy dollars" from exporters of Montana energy by extending a severance-like tax to non-coal generation and creating an energy authority. Utilities, developers and conservation groups testified that the bill functions as a 10% sales tax, would raise consumer costs and could push projects out of state.

Representative Gary Perry opened a lengthy hearing on House Bill 326, telling the House Taxation Committee he wants Montana to receive long-term "legacy dollars" when out-of-state buyers take electricity generated in the state.

Perry said the bill would broadly apply a severance-style charge to most electricity produced in Montana while excluding coal (which currently pays a 15% severance tax that he proposes lowering to 10%) and noncommercial or agricultural on-site generation. He also proposed creating a state energy authority and directing funds into an energy severance tax trust and a capped permanent fund of up to $250,000,000 to finance projects and staffing.

Opponents from across the energy sector and local governments urged the committee to reject the bill. Bruce Spencer, representing the Montana Energy Business Alliance,…

Montana committee hears bill to tax most electricity generation; industry warns 10% levy would deter investment

Summary

Subscribe to keep reading