Montana taxes coal gross proceeds at 5% per year. (15-23-703, MCA)
Determining Gross Proceeds
Gross proceeds are the number of tons produced multiplied by the contract sales price. The contract sales price is the price of the coal extracted and prepared for shipment FOB Mine, minus the required production taxes.
Production taxes include:
- State severance tax
- Resource Indemnity Trust and Ground Water Assessment Tax
- Local gross proceeds tax
- Federal reclamation taxes
- Federal Black Lung tax
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.
Reporting and Payment Options
File through our TransAction Portal (TAP)
The Coal Gross Proceeds Tax is due in two payments:
- 50% of taxes due November 30
- 50% of taxes due May 31 the following year
County treasurers distribute portions of CGP revenue to the appropriate taxing jurisdiction based on the number of mills levied in fiscal year 1990.