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 existing mill levies designated as excluded by local governments. Additionally, it introduces provisions for districts created on or after the effective date of the act, further clarifying the exclusions.

The bill also establishes an immediate effective date and outlines its applicability to urban renewal areas and targeted economic development districts created on or after this date. It ensures that any excess tax increment remaining after expenditures must be remitted to each taxing jurisdiction proportionally based on their share of the total mills levied. This legislative change is intended to provide clarity and flexibility in the management of tax increment financing, particularly for new districts, while ensuring that certain levies do not impact the financial 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(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