15-35-101. Legislative findings and declarations of purpose. (1) The legislature finds that while coal is extracted from the earth like metal minerals, there are differences between coal and metal minerals such that they should be classified in different categories for taxation purposes. The legislature finds that while coal can be utilized like petroleum products, there are differences between coal and petroleum such that they should be classified in different categories for taxation purposes. The legislature further finds that:
     (a) coal is the only mineral which can supply energy while being easily found in abundance in Montana;
     (b) coal is the only mineral which is so often marketed through sales contracts of many years' duration;
     (c) coal, unlike most minerals, varies widely in composition and consequent value when marketed;
     (d) coal in Montana is subject to regional and national demands for development which could affect the economy and environment of a larger portion of the state than any other mineral development has done;
     (e) subbituminous coal and lignite coal in Montana have sufficiently different markets and value and therefore require different production taxes;
     (f) coal produced in underground mines has higher production costs and underground producers are able to pay lesser amounts of royalty and production tax than strip-mine producers can pay; and
     (g) coal production in Montana has been subject to an uncoordinated array of taxes which overlap one another and yield revenue in an inconsistent and unpredictable manner.
     (2) The legislature declares that the purposes of this chapter are to:
     (a) allow the severance taxes on coal production to remain a constant percentage of the price of coal;
     (b) stabilize the flow of tax revenue from coal mines to local governments through the property taxation system;
     (c) simplify the structure of coal taxation in Montana, reducing tax overlap and improving the predictability of tax projections; and
     (d) accomplish the foregoing purposes by establishing categories of taxation which recognize the unique character of coal as well as the variations found within the coal industry.

     History: En. 84-1312 by Sec. 1, Ch. 525, L. 1975; R.C.M. 1947, 84-1312; amd. Sec. 1, Ch. 608, L. 1987.