# Mont. Code Ann. § 15-35-103: 15-35-103 Severance tax -- rates imposed

> Montana · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-103

## Section

- **Citation:** Mont. Code Ann. § 15-35-103
- **Heading:** 15-35-103 Severance tax -- rates imposed
- **Jurisdiction:** Montana
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MT Code / Title 15 / Chapter 35 / Part 1 / Section 15-35-103

## Text

15-35-103 . Severance tax -- rates imposed. (1) A severance tax is imposed on each ton of coal produced in the state in accordance with the following schedule:

Heating quality Surface Auger Underground (Btu per pound of coal): Mining Mining Mining Under 7,000 10% of value 3.75% of value 3% of value 7,000 and over 15% of value 5% of value 4% of value

(2) "Value" means the contract sales price.

(3) A person is not liable for any severance tax upon 50,000 tons of the coal that the person produces in a calendar year, except that if more than 50,000 tons of coal are produced in a calendar year, the producer is liable for severance tax upon all coal produced in excess of the first 20,000 tons.

(4) The reduced tax rate on coal produced by auger mining applies only to coal recovered from a mining operation that would otherwise be uneconomical to recover by conventional strip-mining methods as specified in the coal conservation plan submitted to and approved by the department of environmental quality under the provisions of Title 82, chapter 4, part 2.

## Nearby sections

- [Mont. Code Ann. § 15-35-101 15-35-101 Legislative findings and declarations of purpose](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-101.md)
- [Mont. Code Ann. § 15-35-102 15-35-102 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-102.md)
- [Mont. Code Ann. § 15-35-103 15-35-103 Severance tax -- rates imposed](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-103.md)
- [Mont. Code Ann. § 15-35-104 15-35-104 Quarterly statement and payment of tax](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-104.md)
- [Mont. Code Ann. § 15-35-105 15-35-105 Penalty and interest for delinquent tax -- waiver](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-105.md)
- [Mont. Code Ann. § 15-35-106 15-35-106 Annual testing of samples](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-106.md)
- [Mont. Code Ann. § 15-35-107 15-35-107 When value of coal may be imputed -- procedure](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-107.md)
- [Mont. Code Ann. § 15-35-108 15-35-108 Disposal of severance taxes](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-108.md)
- [Mont. Code Ann. § 15-35-112 15-35-112 Deficiency assessment -- review -- penalty and interest](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-112.md)
- [Mont. Code Ann. § 15-35-113 15-35-113 Credit for overpayment -- interest on overpayment](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-113.md)
- [Mont. Code Ann. § 15-35-114 15-35-114 Statute of limitations](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-114.md)
- [Mont. Code Ann. § 15-35-121 15-35-121 Penalties for neglect or false statement](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-121.md)
- [Mont. Code Ann. § 15-35-122 15-35-122 Rulemaking authority](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-122.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C35_P1_S15-35-103. Check the current official text before relying on it. Not legal advice.