Bill > SB133

This bill revises Montana's local government impact fee laws by making several key changes to how municipalities can charge development impact fees. The bill modifies definitions of terms like "impact fee" and "public facilities," removing the previous allowance for a 5% administrative fee and explicitly listing the types of facilities that can be funded through impact fees, which now include water and wastewater systems, transportation infrastructure, storm water and flood control facilities, and emergency services facilities like 9-1-1 systems and law enforcement. The bill introduces a new restriction that prevents initial impact fees from increasing more than the rate of inflation, which will be calculated using the producer price index. Additionally, the legislation requires governmental entities to prepare detailed service area reports when establishing impact fees, including documenting existing facility conditions, forecasting future service needs, and establishing methodologies for calculating fees. The bill emphasizes that impact fees must be reasonably related to the actual cost of infrastructure improvements necessitated by new development, cannot include operational or maintenance expenses, and cannot charge new developments for existing system deficiencies. These changes aim to provide more transparency and fairness in how local governments assess development impact fees.

Government Affairs

https://bills.legmt.gov/#/laws/bill/2/LC1030