WASHINGTON, D.C. – Montana’s Congressman, Denny Rehberg, has introduced legislation that would restore the additional 2% of Oil and Natural Gas Tax Revenue taken by the Federal Government since 2007. The Restoring the West’s Fair Share Act would return tax revenue for oil and gas leases on federal lands to the state. In 2008, Montana lost $6.5 million in revenue as a result of this policy.
“While Montana was making tough choices to balance the budget, the Federal Government decided to pilfer our tax revenues to subsidize out-of-control government spending,” said Rehberg, a member of the House Appropriations Committee. “It’s just wrong to ask western states to foot a disproportionate amount of the bill, especially when the lion’s share of funding is going elsewhere.”
The FY08 Consolidated Appropriations Act reduced the share of tax revenues acquired from oil and gas leases by 2%. Western states like Montana are hit by this change particularly hard because of a disproportionately high amount of federal land. Montana alone features 7.9 million acres controlled by the Bureau of Land Management and 17.9 million acres controlled by the Forest Service, totaling more than 29% of the entire state.
The large amount of federal land already deprives the state of tax revenues by denying property tax collection. Further reducing state tax revenue from oil and natural gas production – which help fund education and roads – adds insult to injury.
“Montana runs a tight ship with a balanced budget,” said Rehberg. “It’s unacceptable for the federal government to raid our piggy bank to feed its big spending habit."
