Coal mined in Montana is taxed with the Coal Severance Tax to be reported on the Coal Severance Tax return.
Coal severance tax rates are based on the heat content (BTUs per pound) of the coal and the method of extraction.
Extraction Type | Under 7,000 BTU | 7,000 BTU or Higher |
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Surface Mined Coal | 10% of value | 15% of value |
Underground Mined Coal | 3% of value | 4% of value |
The severance tax applies to the contract sales price of the coal.
The contract sales price is the sales price of the coal extracted and prepared for shipment FOB Mine, minus the required production taxes.
Price FOB Mine - Production Taxes + Royalties = Contract Sales Price
Production taxes include:
The contract sales price includes up to $0.15 per ton royalties paid to federal, state, and tribal governments and all royalties paid to other mineral rights owners.
Royalties = ((Federal Tons + State Tons + Tribal Tons) x $0.15) + Other Royalties
File and pay through our TransAction Portal (TAP)
The return is due 30 days after the end of each calendar quarter:
First Quarter | April 30 |
---|---|
Second Quarter | July 30 |
Third Quarter | October 30 |
Fourth Quarter | January 30 |
The Coal Severance Tax is subject to uniform penalties and interest.
We collect the coal severance tax and distribute the revenues according to 15-35-108, MCA.