Bill

Bill > HB846


MT HB846

Revising property taxation for certain local government subdivisions


summary

Introduced
03/19/2025
In Committee
04/10/2025
Crossed Over
04/03/2025
Passed
04/28/2025
Dead
Signed/Enacted/Adopted
05/13/2025

Introduced Session

2025 Regular Session

Bill Summary

AN ACT GENERALLY REVISING PROPERTY TAXATION FOR CERTAIN LOCAL GOVERNMENT SUBDIVISIONS; PROVIDING FOR RECONCILIATION PAYMENTS BETWEEN CERTAIN SCHOOL DISTRICTS WHEN ISOLATED PUPILS ARE INVOLVED; ESTABLISHING A PROCESS FOR A SCHOOL DISTRICT TO SEEK A RECONCILIATION PAYMENT BY PETITIONING THE COUNTY SUPERINTENT AND PAYING A PROCESSING FEE; PROVIDING THAT THE TAXABLE VALUE OF TERRITORY TRANSFERRED BETWEEN SCHOOL DISTRICTS IS SPLIT BETWEEN THE DISTRICTS FOR A PERIOD OF 3 YEARS; PROVIDING FOR PAYMENTS BETWEEN DISTRICTS FOLLOWING A TERRITORY TRANSFER IF A RECONCILIATION PAYMENT WAS MADE PREVIOUSLY; PROVIDING DEFINITIONS; AMING SECTION 20-6-105, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE.”

AI Summary

This bill establishes a comprehensive framework for reconciliation payments between school districts when isolated pupils are enrolled in a non-resident district. The legislation defines key terms such as "isolated pupils" (students who cannot access their resident school district's services due to geographic conditions) and creates a process for school districts to petition for reconciliation payments. Under the bill, a school district can seek a reconciliation payment by filing a petition with the county superintendent and paying a $100 processing fee, but only if certain conditions are met, including that the resident school district has a taxable value of at least $100 million and a per-student taxable value significantly higher than the district of attendance. If approved, the resident school district must calculate and impose levies to generate a payment to the school district of attendance, which will be based on the number of isolated pupils and the district's operational levy mills. The bill also requires school districts with 5% or more isolated pupils to establish an advisory council to foster dialogue about these students' educational experiences, and it introduces new provisions for handling the taxable value and financial implications when school district territories are transferred, including splitting the taxable value equally between districts for three years after a transfer and managing any previous reconciliation payment obligations.

Committee Categories

Education

Sponsors (1)

Last Action

(H) Signed by Governor (on 05/13/2025)

bill text


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