Committee hears bill to route non‑levy natural‑resource revenue into school equalization account

Representative Mark Thane, sponsor of House Bill 18, told the House Taxation Committee the bill is primarily a statutory cleanup that clarifies where certain non‑levy revenues are deposited. "This bill does not change the distribution," Thane said, but it changes references so that some revenue that had been directed to the state general fund is instead deposited into the school equalization and property tax reduction account.

Thane pointed to provisions in the draft that preserve an existing 1.3% appropriation to the Montana University System and keep the county share of production revenue at 77.95%, while redirecting the portion previously destined for the general fund into the school equalization account. He described the change as a bookkeeping and distribution update rather than a new tax or an increase in total revenue.

Bob Story of the Montana Taxpayers Association testified in support and echoed the sponsor: "This bill really doesn't change taxes, it doesn't change the amount of money people pay, and it really doesn't change where it goes. It just clarifies that this revenue stream goes into ... the school equalization account." Story summarized historical non‑levy distributions and said the fiscal note will reflect the flow shift to the school account rather than new revenue.

There were no opponents in the room or online. Representative Thane said the bill was vetted by the revenue interim committee and brought as a bipartisan cleanup measure, and he urged the committee to advance the bill.

The committee closed the hearing; the sponsor and staff indicated the three bills heard that morning would be scheduled for executive action after coordination with sponsors.