2023 Montana Code Annotated › Title 15. Taxation › Chapter 36. Oil and Gas Production Tax › Part 3. Oil and Gas Production Tax Act › 15-36-332. Distribution of taxes to taxing units -- appropriation

15-36-332. Distribution of taxes to taxing units -- appropriation.
(1) (a) Subject to 20-9-310 and subsection (9) of this section, by the dates referred to in subsection (6) of this section, the department shall distribute oil and natural gas production taxes allocated under 15-36-331(3) to each eligible county.
(b) Except as provided by subsection (9), by the dates referred to in subsection (6), the department shall distribute the amount deposited in the oil and gas natural resource distribution account under 15-36-331(2)(b) as provided in subsection (7) of this section.
(2) (a) Each county treasurer shall distribute the amount of oil and natural gas production taxes designated under subsection (1)(a), including the amounts referred to in subsection (2)(b), to the countywide elementary and high school retirement funds, countywide transportation funds, and eligible school districts according to the following schedule:
Elementary
High School
Countywide
School
Retirement
Retirement
Transportation
Districts
Big Horn
14.81%
10.36%
2.99%
26.99%
Blaine
5.86%
2.31%
2.71%
24.73%
Carbon
3.6%
6.62%
1.31%
49.18%
Chouteau
8.1%
4.32%
3.11%
23.79%
Custer
6.9%
3.4%
1.19%
31.25%
Daniels
0
7.77%
3.92%
48.48%
Dawson
5.53%
2.5%
1.11%
35.6%
Fallon
0
7.63%
1.24%
42.58%
Fergus
7.88%
4.84%
2.08%
53.25%
Garfield
4.04%
3.13%
5.29%
26.19%
Glacier
11.2%
4.87%
3.01%
46.11%
Golden Valley
0
11.52%
2.77%
54.65%
Hill
6.7%
4.07%
1.59%
49.87%
Liberty
4.9%
4.56%
1.15%
35.22%
McCone
4.18%
3.19%
2.58%
43.21%
Musselshell
5.98%
4.07%
3.53%
32.17%
Petroleum
0
11.92%
4.59%
55.48%
Phillips
0.43%
6.6%
1.08%
41.29%
Pondera
6.96%
5.06%
1.94%
45.17%
Powder River
3.96%
2.97%
4.57%
22.25%
Prairie
0
8.88%
1.63%
36.9%
Richland
4.1%
3.92%
2.26%
43.77%
Roosevelt
9.93%
7.37%
2.74%
40.94%
Rosebud
3.87%
2.24%
1.05%
72.97%
Sheridan
0
3.39%
2.22%
47.63%
Stillwater
6.87%
4.86%
1.63%
41.16%
Sweet Grass
6.12%
6.5%
2.4%
37.22%
Teton
6.88%
8.19%
3.8%
29.43%
Toole
2.78%
4.78%
1.3%
43.56%
Valley
2.26%
12.61%
4.63%
41.11%
Wibaux
0
4.1%
0.77%
31.46%
Yellowstone
7.98%
4.56%
1.07%
52.77%
All other counties
3.81%
7.84%
1.81%
41.04%
(b) (i) The county treasurer shall distribute 9.8% of the Custer County share to the countywide community college district in Custer County.
(ii) The county treasurer shall distribute 14.5% of the Dawson County share to the countywide community college district in Dawson County.
(3) The remaining oil and natural gas production taxes for each county must be used for the exclusive use and benefit of the county, including districts within the county established by the county.
(4) (a) The county treasurer shall distribute oil and natural gas production taxes to school districts in each county referred to in subsection (2) as provided in subsections (4)(b) through (4)(d) and subject to the provisions of 20-9-310.
(b) The amount distributed to each K-12 district within the county is equal to oil and natural gas production taxes in the county multiplied by the ratio that oil and natural gas production taxes attributable to oil and natural gas production in the K-12 school district bear to total oil and natural gas production taxes attributable to total oil and natural gas production in the county and multiply that amount by the school district percentage figure for the county referred to in subsection (2)(a).
(c) For the amount to be distributed to each elementary school district and to each high school district under subsection (4)(d), the department shall first determine the amount of oil and natural gas production taxes in the high school district that is attributable to oil and natural gas production in each elementary school district that is located in whole or in part within the exterior boundaries of a high school district and multiply that amount by the school district percentage figure for the county referred to in subsection (2)(a).
(d) (i) The amount distributed to each elementary school district that is located in whole or in part within the exterior boundaries of a high school district is equal to the amount determined in subsection (4)(c) multiplied by the ratio that the total mills of the elementary school district bear to the sum of the total mills of the elementary school district and the total mills of the high school district.
(ii) The amount distributed to the high school district is equal to the amount determined in subsection (4)(c) multiplied by the ratio that the total mills of the high school district bear to the sum of the total mills of each elementary school district referred to in subsection (4)(c) and the total mills of the high school district.
(5) Oil and natural gas production taxes calculated for each school district under subsections (4)(b) through (4)(d) must be distributed to each school district as provided in 20-9-310.
(6) Subject to 20-9-310 and subsection (9) of this section, the department shall remit the amounts to be distributed in this section to the county treasurer by the following dates:
(a) On or before August 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending March 31 of the current year.
(b) On or before November 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending June 30 of the current year.
(c) On or before February 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending September 30 of the previous year.
(d) On or before May 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending December 31 of the previous year.
(7) The department shall distribute the funds received under 15-36-331(2)(b) to counties based on county oil and gas production for distribution to incorporated cities and towns within the county. If there is more than one incorporated city or town within the county, the allocation must be distributed to the cities and towns based on their relative populations.
(8) The distributions to taxing units and to counties and incorporated cities and towns under this section are statutorily appropriated, as provided in 17-7-502, from the state special revenue fund.
(9) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:
(a) file a financial report required by 15-1-504;
(b) remit any amounts collected on behalf of the state as required by 15-1-504; or
(c) remit any other amounts owed to the state or another taxing jurisdiction.
History: En. Sec. 2, Ch. 522, L. 2003; amd. Sec. 5, Ch. 603, L. 2005; amd. Sec. 4, Ch. 33, L. 2009; amd. Sec. 27, Ch. 128, L. 2011; amd. Sec. 1, Ch. 418, L. 2011; amd. Sec. 6, Ch. 173, L. 2017; amd. Sec. 3, Ch. 414, L. 2019.