The bill revises Montana's tax increment financing laws by eliminating the requirement for qualified electors to approve tax increment financing provisions and bond issuances. Instead, it allows electors in urban renewal areas or targeted economic development districts to request elections on these matters. Key changes include excluding school levies from tax increment calculations, extending the maximum duration of tax increment financing from 20 to 30 years, and mandating local governing bodies to approve all expenditures of tax increment financing. The bill also introduces a new procedure for electors to initiate referendums on tax increment financing provisions, requiring a petition signed by at least 15% of qualified electors.

Additionally, the bill clarifies the process for adopting tax increment provisions, stipulating that local governing bodies must hold public hearings before adoption and cannot submit amendments to voters if the total incremental taxable value exceeds 7% of the jurisdiction's total taxable value. It limits the use of tax increment funds for administrative costs and prohibits their use for land acquisition unless approved by a petition from qualified electors. The bill also modifies bond issuance terms, establishes procedures for pledging tax increments to bond payments, and emphasizes the need for transparency and accountability in the use of tax increment financing, with an effective date of January 1, 2024.

Statutes affected:
SB0523_1.pdf: 7-15-4206, 7-15-4210, 7-15-4211, 7-15-4215, 7-15-4221, 7-15-4232, 7-15-4233, 7-15-4258, 7-15-4259, 7-15-4282, 7-15-4283, 7-15-4286, 7-15-4288, 7-15-4289, 7-15-4290, 7-15-4291, 7-15-4292, 7-15-4301, 7-15-4302, 7-15-4324, 17-6-316, 70-30-102, 71-3-1506
SB0523_2.pdf: 7-15-4206, 7-15-4210, 7-15-4211, 7-15-4215, 7-15-4221, 7-15-4232, 7-15-4233, 7-15-4258, 7-15-4259, 7-15-4282, 7-15-4283, 7-15-4286, 7-15-4288, 7-15-4289, 7-15-4290, 7-15-4291, 7-15-4292, 7-15-4301, 7-15-4302, 7-15-4324, 17-6-316, 70-30-102, 71-3-1506
Amended: 7-15-4206, 7-15-4210, 7-15-4211, 7-15-4215, 7-15-4221, 7-15-4232, 7-15-4233, 7-15-4258, 7-15-4259, 7-15-4282, 7-15-4283, 7-15-4286, 7-15-4288, 7-15-4289, 7-15-4290, 7-15-4291, 7-15-4292, 7-15-4301, 7-15-4302, 7-15-4324, 17-6-316, 70-30-102, 71-3-1506
Introduced: 7-15-4206, 7-15-4210, 7-15-4211, 7-15-4215, 7-15-4221, 7-15-4232, 7-15-4233, 7-15-4258, 7-15-4259, 7-15-4282, 7-15-4283, 7-15-4286, 7-15-4288, 7-15-4289, 7-15-4290, 7-15-4291, 7-15-4292, 7-15-4301, 7-15-4302, 7-15-4324, 17-6-316, 70-30-102, 71-3-1506