The bill aims to lower school district property taxes related to transportation by increasing the reimbursement rates for school transportation. It amends Section 20-10-141 of the Montana Code Annotated (MCA) to adjust the maximum reimbursement rates for bus mileage. Specifically, the bill increases the reimbursement rates for various categories of school buses, with rates rising from 50 cents to 85 cents for certain buses, and from 95 cents to $1.58 for buses with a capacity of not more than 49 passengers, among other adjustments. Additionally, nonbus mileage reimbursement is also increased from 50 cents to 85 cents per mile.

The bill establishes an effective date of July 1, 2025, and specifies that the new reimbursement rates will apply to on-schedule reimbursements supporting school district transportation budgets for fiscal years beginning on or after this date. This legislative change is intended to provide financial relief to school districts by enhancing the funding available for transportation, thereby potentially reducing the burden on property taxes.

Statutes affected:
LC Text: 20-10-141
HB0405_1(1): 20-10-141
HB0405_1: 20-10-141