The bill revises the tax increment financing laws in Montana, specifically addressing the calculation of tax increments for newly created urban renewal areas and targeted economic development districts. It 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. The new provisions specify that for districts created on or after the effective date of the 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 voter-approved mill levies, any portion of existing mill levies designated as excluded, school district levies imposed under specific statutes, and mills for debt service on voted general obligation bonds.

Additionally, the bill establishes an immediate effective date upon passage and approval, and it specifies that the new provisions will apply to urban renewal areas and targeted economic development districts created on or after the effective date of the act. This legislative change aims to provide more favorable conditions for the financing of economic development projects by allowing for a more favorable calculation of tax increments, thereby potentially increasing funding for local governments and development initiatives.

Statutes affected:
LC Text: 7-15-4286