Senate Bill No. introduced by G. Hertz aims to revise local government impact fee laws in Montana. The bill removes the provision that allowed an administration fee of up to 5% of the total impact fee collected. It also establishes that impact fees cannot increase more than the rate of inflation, specifically using the Producer Price Index by Commodity, All Commodities, as published by the Bureau of Labor Statistics. Additionally, the bill revises definitions related to impact fees, including the terminology used for governmental entities and public facilities, and clarifies the calculation and documentation requirements for imposing impact fees.

The amendments to Sections 7-6-1601 and 7-6-1602 of the Montana Code Annotated (MCA) include a more detailed framework for how impact fees are calculated and documented. The bill mandates that a service area report be prepared for each public facility where an impact fee is imposed, outlining existing conditions, level-of-service standards, and future needs. It also specifies that the initial amount of an impact fee must be based on the actual costs of public facility expansion and that the fees must be reasonably related to the development's share of infrastructure costs. Furthermore, the bill emphasizes that costs for correcting existing deficiencies cannot be included in the impact fee calculation.

Statutes affected:
LC Text: 7-6-1601, 7-6-1602
SB0133_1(1): 7-6-1601, 7-6-1602
SB0133_1(2): 7-6-1601, 7-6-1602
SB0133_1(3): 7-6-1601, 7-6-1602
SB0133_1(4): 7-6-1601, 7-6-1602
SB0133_1(5): 7-6-1601, 7-6-1602
SB0133_1(6): 7-6-1601, 7-6-1602
SB0133_1(7): 7-6-1601, 7-6-1602
SB0133_1: 7-6-1601, 7-6-1602
SB0133_2(1): 7-6-1601, 7-6-1602
SB0133_2(10): 7-6-1601, 7-6-1602
SB0133_2(11): 7-6-1601, 7-6-1602
SB0133_2(2): 7-6-1601, 7-6-1602
SB0133_2(3): 7-6-1601, 7-6-1602
SB0133_2(4): 7-6-1601, 7-6-1602
SB0133_2(5): 7-6-1601, 7-6-1602
SB0133_2(6): 7-6-1601, 7-6-1602
SB0133_2(7): 7-6-1601, 7-6-1602
SB0133_2(8): 7-6-1601, 7-6-1602
SB0133_2(9): 7-6-1601, 7-6-1602
SB0133_2: 7-6-1601, 7-6-1602
SB0133_3(1): 7-6-1601, 7-6-1602
SB0133_3: 7-6-1601, 7-6-1602