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Bill

Bill

HB 858

Revise coal severance tax coal washing credit

2025 Regular Session Introduced by Larry Brewster

HB 858 would adjust Montana's coal severance tax credit for washing operations, affecting state revenue and coal operator costs, but died in the 2025 legislative session.

(H) Died in Process
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Bill Summary · HB 858

Legislative bill overview

HB 858 would modify Montana's coal severance tax by revising the tax credit available for coal washing operations. Coal washing removes impurities from raw coal, and the bill adjusts how this process is credited against the state's severance tax obligations. The specific modifications to the credit structure were not detailed in the available legislative record.

Why is this important

Montana's coal severance tax is a significant revenue source for the state, and tax credits directly affect how much revenue the state receives from coal extraction. Changes to washing operation credits impact both coal operators' operating costs and state funding available for education, infrastructure, and other programs. The coal industry remains economically important in certain Montana regions despite declining national coal demand.

Potential points of contention

  • Industry vs. revenue concerns: Coal operators benefit from expanded credits (lower tax burden), while state budget advocates worry about reduced severance tax revenue for schools and public services
  • Competitiveness and market dynamics: Adjusting washing credits affects the economics of Montana coal relative to competing coal operations and other energy sources
  • Legislative process: The bill died without a vote after missing the revenue bill transmittal deadline and being tabled in committee, suggesting either lack of consensus or procedural barriers to passage

Compiled from official sources — confirm details with the bill’s official record.

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