summary
Introduced
03/25/2025
03/25/2025
In Committee
03/26/2025
03/26/2025
Crossed Over
Passed
Dead
05/20/2025
05/20/2025
Introduced Session
2025 Regular Session
Bill Summary
AN ACT ENTITLED: “AN ACT GENERALLY REVISING PROPERTY TAXES; REVISING GOVERNMENTAL ENTITY LIMITS ON PROPERTY TAX INCREASES; INCREASING THE RATE OF INFLATION LIMITATION IMPOSED ON GOVERNMENTAL ENTITIES FOR CALCULATING PROPERTY TAX LEVIES; PROVIDING THAT A PORTION OF NEWLY TAXABLE PROPERTY IS SUBJECT TO THE MILL LEVY LIMITATION CALCULATION; PROVIDING THAT A LOCAL GOVERNMENT MAY CREATE A LARGE TAXPAYER RESERVE ACCOUNT; AMING SECTIONS 7-6-4431 AND 15-10-420, MCA; PROVIDING AN APPLICABILITY DATE.”
AI Summary
This bill revises how local governments in Montana can calculate and increase property tax levies, introducing several key changes. It allows cities, counties, and consolidated city-counties to establish a large taxpayer reserve account, which would require depositing 10% of revenue from newly taxable property annually. This account can only be used in specific circumstances, such as when a large taxpayer (defined as an entity among the top 20% of taxpayers by taxable value) permanently ceases operations or experiences a significant decrease in taxable value. The funds can then be used for purposes like paying outstanding bonds, decreasing mill levies, attracting new industry, providing employment incentives, or investing in infrastructure. The bill also modifies how governmental entities calculate their maximum mill levy, increasing the inflation limitation from one-half to the full average rate of inflation (not to exceed 4%) and changing how newly taxable property is factored into levy calculations. Specifically, governmental entities can now include different percentages of newly taxable value depending on whether they create a large taxpayer reserve account (50% inclusion) or not (40% inclusion). The changes will apply to property tax years beginning after December 31, 2025, providing local governments with new flexibility in managing property tax revenues and responding to significant changes in their tax base.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
(H) Died in Process (on 05/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
---|---|
State Bill Page | https://bills.legmt.gov/#/laws/bill/2/LC1170 |
State Bill Page | https://bills.legmt.gov/#/lc/bill/2/LC1170 |
Fiscal Note HB0865_1 | https://docs.legmt.gov/download-ticket?ticketId=7580519a-e925-4f7c-8799-1bc1e4693fd9 |
BillText | https://docs.legmt.gov/download-ticket?ticketId=f5770ec6-7780-4b4d-a26d-8737a5a786da |
BillText | https://api.legmt.gov/docs/v1/documents/getContent?documentId=297572 |
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