Bill > LC1225

This bill requires cities, towns, and counties to collect a user fee on certain types of exempt properties that exceed 20,000 square feet, including properties owned by churches, educational institutions, nonprofit health care facilities, museums, water cooperatives, organizations serving people with disabilities, sports facilities, community service organizations, affordable housing providers, and agricultural societies. The user fee would be calculated by multiplying the square footage of improvements by the mill rate for public safety, with a maximum fee of $25,000 per property. The collected fees must be spent exclusively on public safety services, which are defined broadly to include fire protection, law enforcement, emergency response systems, mental health treatment, animal control, and prosecutorial and judicial services. Local governments must adopt an ordinance to govern fee collection, with the department of revenue certifying the square footage of exempt properties. The county treasurer will assess the fee alongside property taxes, and the fees will be due at the same time as property taxes. This legislation is set to apply to property tax years beginning after December 31, 2025, effectively creating a new revenue stream for local governments from previously tax-exempt properties while limiting the financial impact on individual property owners.

https://bills.legmt.gov/#/lc/bill/2/LC1225