House Bill No. introduced by M. Thane aims to revise tax increment financing laws by excluding certain school levies and debt service levies from the calculation of tax increments for newly created districts. The bill amends Section 7-15-4286 of the Montana Code Annotated (MCA) to specify that for targeted economic development districts and urban renewal areas created 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, new mill levies approved by voters after the adoption of a tax increment provision, and any portion of an existing mill levy designated as excluded by local government. Additionally, it introduces provisions for districts created on or after the effective date of the act, further clarifying the exclusions.

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. The act is set to take effect immediately upon passage and approval, with specific applicability provisions for urban renewal areas and targeted economic development districts created on or after the effective date. This legislative change is intended to streamline the tax increment financing process and provide clarity on the levies that can be included in the calculation.

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(4): 7-15-4286
HB0451_1(5): 7-15-4286
HB0451_1(6): 7-15-4286
HB0451_1(7): 7-15-4286
HB0451_1: 7-15-4286
HB0451_2(1): 7-15-4286
HB0451_2(10): 7-15-4286
HB0451_2(11): 7-15-4286
HB0451_2(2): 7-15-4286
HB0451_2(3): 7-15-4286
HB0451_2(4): 7-15-4286
HB0451_2(5): 7-15-4286
HB0451_2(6): 7-15-4286
HB0451_2(7): 7-15-4286
HB0451_2(8): 7-15-4286
HB0451_2(9): 7-15-4286
HB0451_2: 7-15-4286