Senate endorses bill to lower coal tax
By The Associated Press - 04/01/07
Senators voted for a bill sponsored by Sen. Keith Bales, R-Otter, that would provide temporary and permanent reductions in the tax rate for coal producers who sequester part of coal’s carbon dioxide.
Bales said the state’s coal severance tax hampers economic development in parts of Montana.
‘‘If we are truly serious about economic development in eastern Montana, this is only way, or one of the ways, to do it,’’ Bales said.
He added that the overall tax burden faced by Wyoming coal producers is about half that faced by their Montana counterparts and consequently, Wyoming outpaces Montana in coal development.
Sen. Jim Elliott, D-Trout Creek, said the overall taxes on coal production in Wyoming and Montana are similar and it is partly the cost of shipping coal that restrains development in Montana. Sen. Christine Kaufmann, D-Helena, said the Bales bill has technical flaws and is unnecessary.
‘‘I don’t think coal needs a tax break to operate in Montana,’’ Kaufmann said.
The bill is Senate Bill 551.
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