HOUSE BILL NO. 275
INTRODUCED BY K. PETERSON
A BILL FOR AN ACT ENTITLED: "AN ACT CLARIFYING THE POWERS OF A SELF-GOVERNING LOCAL GOVERNMENT THAT REQUIRE DELEGATION; CLARIFYING THE AUTHORITY OF SELF-GOVERNING LOCAL GOVERNMENTS TO IMPOSE TAXES; PLACING RESTRICTIONS ON SALES TAXES ADOPTED BY SELF-GOVERNING LOCAL GOVERNMENTS; REQUIRING TAXES OTHER THAN MILL LEVIES TO BE APPROVED BY THE VOTERS OF THE SELF-GOVERNING LOCAL GOVERNMENT IN ORDER TO BE EFFECTIVE; AMENDING SECTIONS 7-1-101 AND 7-1-112, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 7-1-101, MCA, is amended to read:
"7-1-101. Self-government powers -- taxation. (1) As provided by Article XI, section 6, of the Montana constitution, a local government unit with self-government powers may exercise any power not prohibited by the constitution, law, or charter. These powers include but are not limited to the powers granted to general power governments.
(2) A local government with self-government powers may impose property taxes and other taxes. The power to impose taxes is limited as follows:
(a) A property tax is subject to 15-10-420.
(b) A sales tax may not:
(i) exceed 2% of the retail sales price of the goods or services upon which it is imposed; and
(ii) be imposed on necessities, including food, prescription drugs, and fuel and other goods or services that may be further defined as necessities by the local government imposing the tax.
(3) A tax, other than a mill levy, imposed pursuant to subsection (2), must be submitted to and approved by the voters of the local government unit in order to be effective."
Section 2. Section 7-1-112, MCA, is amended to read:
"7-1-112. Powers requiring delegation -- taxation delegation. A local government with self-government powers is prohibited the exercise of the following powers unless the power is specifically delegated by law:
(1) subject to 7-1-101, the power to authorize a tax on income or the sale of goods or services, except that, subject to
15-10-420, this section may not be construed to limit the authority of a local government to levy any other tax or establish
the rate of any other tax;
(2) the power to regulate private activity beyond its geographic limits;
(3) the power to impose a duty on another unit of local government, except that nothing in this limitation affects the right of a self-government unit to enter into and enforce an agreement on interlocal cooperation;
(4) the power to exercise any judicial function, except as an incident to the exercise of an independent self-government administrative power;
(5) the power to regulate any form of gambling, lotteries, or gift enterprises."
NEW SECTION. Section 3. Effective date. [This act] is effective on passage and approval.
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Latest Version of HB 275 (HB0275.01)
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