Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                             HB 391.1
                                                HOUSE BILL NO. 391
        INTRODUCED BY S. ESSMANN, C. KNUDSEN, B. MITCHELL, L. BREWSTER, S. HINEBAUCH, J.
                                                      KASSMIER
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  A BILL FOR AN ACT ENTITLED: “AN ACT REQUIRING CITIES AND COUNTIES TO COLLECT A USER FEE
  ON CERTAIN EXEMPT PROPERTY; PROVIDING THE PROPERTY THAT IS SUBJECT TO THE FEE;
  PROVIDING THAT THE FEE MUST BE USED FOR PUBLIC SAFETY AND ROAD MAINTENANCE;
  PROVIDING THAT THE FEE MUST BE BASED ON SQUARE FOOTAGE OR A FLAT FEE IF THERE ARE
  NO IMPROVEMENTS; AND PROVIDING A DEFINITION.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          NEW SECTION. Section 1.         Municipal user fee for exempt property. (1) An incorporated city or
  town shall collect a user fee on the following property that is exempt from taxation:
          (a)      land and improvements owned by a church and used for actual religious worship, for
  residences of the clergy, or for educational or youth recreational activities provided for in 15-6-201(1)(b);
          (b)      property used exclusively for educational purposes provided for in 15-6-201(1)(e);
          (c)      property used exclusively for nonprofit health care facilities provided for in 15-6-201(1)(g);
          (d)      public museums, art galleries, zoos, and observatories that are not operated for gain or profit
  provided for in 15-6-201(1)(k) unless supported solely by public funds;
          (e)      land, buildings, and improvements owned by a cooperative association or nonprofit corporation
  organized to furnish potable water to its members or customers provided for in 15-6-201(1)(l);
          (f)      property that is owned and used by a corporation or association organized and operated
  exclusively for the care of persons with developmental disabilities, persons with mental illness, or persons with
  physical or mental impairments provided for in 15-6-201(1)(n)(i);
          (g)      property owned by a nonprofit corporation that is organized to provide facilities primarily for
  training and practice for or competition in international sports and athletic events provided for in 15-6-201(1)(o);
          (h)      building and appurtenant land owned by a nonprofit community service organization provided
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68th Legislature 2023                                                                                               HB 391.1
  for in 15-6-209;
          (i)        residential rental property that is dedicated to providing affordable housing for lower-income
  persons provided for in 15-6-221; and
          (j)        building and appurtenant land owned by a railroad and leased to a nonprofit organization
  provided for in 15-6-227.
          (2)        (a) Except as provided in subsection (2)(b), the user fee must be based on the square footage
  of improvements located on the exempt property.
          (b)        The city or town shall assess a flat user fee on an entity listed in subsection (1) with exempt
  real property but with no exempt improvements.
          (3)        The city or town shall spend the user fee on public safety and road maintenance. The revenue
  collected from the user fee must be expended proportionally between public safety and road maintenance in
  the same proportion as property taxes are expended for public safety and road maintenance.
          (4)        The city or town shall adopt an ordinance governing the collection of the user fee.
          (5)        For the purposes of this section, "public safety" means:
          (a)        fire protection;
          (b)        law enforcement, including detention centers;
          (c)        emergency response systems;
          (d)        animal control;
          (e)        prosecutorial and judicial services, including diversion programs as described in 46-16-130;
  and
          (f)        mental health treatment.
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          NEW SECTION. Section 2.           County user fee. (1) A county shall collect a user fee on the following
  property that is exempt from taxation:
          (a)        land and improvements owned by a church and used for actual religious worship, for
  residences of the clergy, or for educational or youth recreational activities provided for in 15-6-201(1)(b);
          (b)        property used exclusively for educational purposes provided for in 15-6-201(1)(e);
          (c)        property used exclusively for nonprofit health care facilities provided for in 15-6-201(1)(g);
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68th Legislature 2023                                                                                               HB 391.1
          (d)        public museums, art galleries, zoos, and observatories that are not operated for gain or profit
  provided for in 15-6-201(1)(k) unless supported solely by public funds;
          (e)        land, buildings, and improvements owned by a cooperative association or nonprofit corporation
  organized to furnish potable water to its members or customers provided for in 15-6-201(1)(l);
          (f)        property that is owned and used by a corporation or association organized and operated
  exclusively for the care of persons with developmental disabilities, persons with mental illness, or persons with
  physical or mental impairments provided for in 15-6-201(1)(n)(i);
          (g)        property owned by a nonprofit corporation that is organized to provide facilities primarily for
  training and practice for or competition in international sports and athletic events provided for in 15-6-201(1)(o);
          (h)        building and appurtenant land owned by a nonprofit community service organization provided
  for in 15-6-209;
          (i)        residential rental property that is dedicated to providing affordable housing for lower-income
  persons provided for in 15-6-221; and
          (j)        building and appurtenant land owned by a railroad and leased to a nonprofit organization
  provided for in 15-6-227.
          (2)        (a) Except as provided in subsection (2)(b), the user fee must be based on the square footage
  of improvements located on the exempt property.
          (b)        The county shall assess a flat user fee on an entity listed in subsection (1) with exempt real
  property but with no exempt improvements.
          (3)        The county shall spend the user fee for public safety and road maintenance. The revenue
  collected from the user fee must be expended proportionally between public safety and road maintenance in
  the same proportion as property taxes are expended for public safety and road maintenance.
          (4)        The county shall adopt an ordinance governing the collection of the user fee.
          (5)        For the purposes of this section, "public safety" means:
          (a)        fire protection;
          (b)        law enforcement, including detention centers;
          (c)        emergency response systems;
          (d)        animal control;
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68th Legislature 2023                                                                                                HB 391.1
          (e)      prosecutorial and judicial services, including diversion programs as described in 46-16-130;
  and
          (f)      mental health treatment.
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          NEW SECTION. Section 3.          Codification instruction. (1) [Section 1] is intended to be codified as an
  integral part of Title 7, chapter 6, part 44, and the provisions of Title 7, chapter 6, part 44, apply to [section 1].
          (2)      [Section 2] is intended to be codified as an integral part of Title 7, chapter 6, part 25, and the
  provisions of Title 7, chapter 6, part 25, apply to [section 2].
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