House Bill No. [insert bill number] proposes revisions to the tax increment financing laws in Montana, specifically regarding the levies included in the calculation of the tax increment for newly created districts. The bill amends Section 7-15-4286 of the Montana Code Annotated (MCA) to exclude certain school levies and debt service levies from the tax increment calculation. For targeted economic development districts and urban renewal areas created on or after the effective date of this act, the combined mill rates used to calculate the tax increment will not include mill rates for university system mills, one-half of the elementary, high school, and state equalization mills, new mill levies approved by voters after the adoption of a tax increment provision, any portion of an existing mill levy designated as excluded, mill levies imposed by school districts, and mills levied for debt service on voted general obligation bonds.

The bill also establishes that any excess tax increment remaining after the designated expenditures must be remitted to each taxing jurisdiction proportional to their share of the total mills levied. Additionally, the act will take effect upon passage and approval, and it will apply to urban renewal areas and targeted economic development districts created on or after the effective date. This legislative change aims to provide more flexibility and clarity in the financing of economic development projects while ensuring that certain levies do not impact the tax increment calculations adversely.

Statutes affected:
LC Text: 7-15-4286
HB0451_1(1): 7-15-4286
HB0451_1(2): 7-15-4286
HB0451_1(3): 7-15-4286
HB0451_1: 7-15-4286