The Policy Institute, based in Helena, Montana, blends authoritative research and hands-on political engagement to create public policy based on economic justice, fair taxation, corporate accountability and environmental responsibility.

Fair Taxation

Montana's Oil and Gas Tax Holiday: Analysis and Recommendation for Change

Over the past 30 years, the Montana Legislature has steadily reduced the tax responsibility of the oil and gas industry in the state, and decisions by the 1999 Legislature alone reduced tax revenue to the state and counties by hundreds of millions of dollars in subsequent years. The most influential of tax reduction methods has been the oil and gas tax "holiday," which discount tax rates on new wells for defined periods of time. Read more...

State EITC Would Add Fairness to Montana's Tax System

In 1989, one of the best reasons for celebrating Montana's hundredth birthday was the state's progressive tax system. It generally expected residents to support public services based on ability to pay, neither oppressing low-income Montanans nor demanding excessively from the wealthy. Read more...

Summary - Oil and Gas Tax Holiday

History: (oil and gas tax changes over past 20 years; highlights only)

- 1987/HB 776: Legislature exempted oil and gas production for first two years of production, as long as oil price < $25/bbl. Also exempted small-volume stripper oil and gas wells from severance tax and reduced tax on larger-volume stripper wells. Both exemption and reduction in place with oil < $30/bbl. Read more...

Endless Holiday?

A recent article in the Great Falls Tribune addressed the tax "holiday" on oil and gas production in Montana. Because that policy has an enormous impact on the state budget - and represents an enormous injustice in Montana's tax system - the subject deserves further analysis. Read more...

Don't Burn Up the General Fund

Firefighting, as observed repeatedly during the recent special session of the Montana Legislature, ain’t what it used to be. But how firefighting is paid for in the state budget is what it used to be, and the disparity has created a growing virus of subsidy in the state’s tax system. Read more...