The bill proposes significant changes to Montana's property tax laws, particularly regarding the maximum mill levy that governmental entities can impose. A key alteration is the removal of the inflation adjustment for the maximum mill levy, which previously allowed for increases based on the average inflation rate over the past three years. The bill mandates that public safety funding should primarily come from a general levy rather than emergency levies, unless an emergency proclamation is issued. It also clarifies the procedures for levying emergency taxes and the conditions under which these levies can be enacted or extended, including a cap of 2 mills for emergency levies and a requirement for 60% voter approval for any mill levy that increases property tax collections by more than 2% from the previous year.

Additionally, the bill introduces new provisions for managing emergency budgets, requiring districts to detail the total amount of emergency warrants and the additional funds needed to cover them. It stipulates that emergency tax levies will terminate once the emergency has passed, but can remain in effect for up to two years if approved by 60% of qualified electors. Any excess funds raised through these levies must be deducted from the maximum amount that can be levied in the following year. The bill establishes an effective date upon passage and approval, ensuring that the new provisions apply to mill levies for budgets adopted after this date.

Statutes affected:
Introduced: 2-9-212, 10-3-405, 15-10-420, 15-10-425, 20-9-168, 20-15-326