Bill > HB451

This bill revises tax increment financing (TIF) laws by modifying how tax levies are calculated in urban renewal areas and targeted economic development districts. Specifically, the bill excludes certain school levies and debt service levies from the tax increment calculation for newly created districts. For districts created on or after the bill's effective date, the tax increment calculation will not include mill rates for university system levies, half of elementary and high school equalization mills, new voter-approved mill levies for specific purposes, school district mill levies, and mills levied to pay debt service on voted general obligation bonds. The changes aim to provide more flexibility and transparency in how tax increments are calculated and used, with different rules applying to districts created before and after the bill's effective date. The bill allows local governments to designate certain portions of existing mill levies as excluded from tax increment calculations, and requires any excess tax increment to be proportionally remitted to the relevant taxing jurisdictions. The bill takes effect immediately upon passage and applies prospectively to new urban renewal areas and targeted economic development districts.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3170