This bill establishes that property tax levies intended to satisfy specific judicial judgments must receive legislative approval, reinforcing the principle that taxation should not occur without representation. It introduces a new section detailing the requirements for such approval, stipulating that levies can only be enacted through an appropriation of funds or specific legislation permitting local governments or school districts to impose additional taxes. The bill also clarifies that the use of insurance to fulfill judgments is permissible, as long as it does not result in extra property tax levies. Additionally, it amends several sections of the Montana Code Annotated (MCA) to align with this requirement, notably removing the phrase "otherwise properly authorized by law" in favor of stipulations that necessitate legislative authorization.

Furthermore, the bill modifies procedures related to property tax levies and bond issuance by governmental entities, particularly school districts. It allows taxing jurisdictions, excluding the state, to use property taxes, general funds, or bond proceeds to cover tax protest refunds. The bill specifies that a governmental entity may impose a mill levy to generate property taxes from the previous year plus half of the average inflation rate, with provisions for carrying forward unused mill authority. It also permits school districts to issue bonds for various purposes, including funding judgments and repaying tax protests, without requiring voter approval for certain expenditures. Overall, the bill aims to streamline financial processes for local governments and school districts in managing tax-related matters.

Statutes affected:
LC Text: 2-9-316, 7-6-4015, 7-6-4035, 7-6-4453, 7-7-2202, 7-7-2221, 7-7-4221, 15-1-402, 15-10-420, 20-9-403, 20-9-421, 20-9-471