Fiscal Year ... Annual Report [electronic Resource] 2008

Cover Fiscal Year ... Annual Report [electronic Resource] 2008
Fiscal Year ... Annual Report [electronic Resource] 2008
Montana. Board of Investments
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48 COAL TAX TRUST FUND Article IX, Section 5 of the state Constitution requires that 50 percent of all coal severance tax revenues be deposited in a permanent trust fund (Trust), in which the principal "shall forever remain inviolate unless appropriated by a three-fourths vote of each house" of the legislature. The Board is encouraged to invest 25 percent of the Trust in Montana businesses.
The Legislature has partitioned the Trust into several sub-funds. The Permanent Fund was initially establ
...ished when the Trust was created, while the Severance Tax Bond Fund, created later, provides debt service guarantees and is invested solely in STIP. The Treasure State Endowment Fund was created July 1, 1993, with a $10.0 million transfer from the Permanent Fund. From July 1, 1993 through June 30, 1999 one-half of the coal severance tax earmarked for the Trust was deposited in the Permanent Fund and the remaining 50 percent was deposited in the Treasure State Endowment Fund.
Effective July 1, 1999, a new "Treasure State Endowment Regional Water Fund" sub-fund was created and 25 percent of Trust revenues were dedicated to that account.


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