2001 Montana Legislature

About Bill -- Links

SENATE BILL NO. 501

INTRODUCED BY L. GROSFIELD, STORY, CHRISTIAENS, COBB, DEPRATU, MCKENNEY, SCHMIDT, SOMERVILLE

Montana State Seal

AN ACT GENERALLY REVISING THE TAXATION OF PROPERTY; REVISING THE LIMIT ON PROPERTY TAXES; ALLOWING A GOVERNMENTAL ENTITY TO CARRY FORWARD MILL LEVY AUTHORITY; REQUIRING THE DEPARTMENT OF REVENUE TO PROVIDE CERTIFIED VALUES FOR NEWLY TAXABLE PROPERTY AND TOTAL TAXABLE VALUE, EXCLUSIVE OF NEWLY TAXABLE PROPERTY, OF CERTAIN CENTRALLY ASSESSED PROPERTY; REQUIRING THE DEPARTMENT OF REVENUE TO RECERTIFY THE TAXABLE VALUE OF CERTAIN CLASS THIRTEEN PROPERTY FOR TAX YEAR 2000; REQUIRING LOCAL GOVERNMENTS TO RECALCULATE PROPERTY TAXES THAT WOULD HAVE BEEN ACTUALLY ASSESSED BASED ON THE RECERTIFICATION OF CERTAIN CLASS THIRTEEN PROPERTY; REVISING THE REQUIREMENTS FOR REPORTING CERTIFIED TAXABLE VALUE BY THE DEPARTMENT OF REVENUE TO LOCAL TAXING AUTHORITIES; ELIMINATING THE REQUIREMENT THAT THE DEPARTMENT OF REVENUE REPORT CERTIFIED MILLAGE RATES TO LOCAL TAXING AUTHORITIES; ELIMINATING THE REQUIREMENT THAT LOCAL TAXING AUTHORITIES ADOPT A RESOLUTION TO INCREASE MILL LEVIES IN EXCESS OF THE CERTIFIED MILLAGE RATES; AMENDING SECTIONS 7-6-2522, 15-10-202, 15-10-206, AND 15-10-420, MCA; REPEALING SECTIONS 15-10-204, 15-10-205, 15-10-207, AND 15-10-208, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE, A RETROACTIVE APPLICABILITY DATE, AND A TERMINATION DATE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:



     Section 1.  Section 7-6-2522, MCA, is amended to read:

     "7-6-2522.  All-purpose levy -- maximum. (1) The all-purpose levy is an annual levy upon the taxable value of all property in the county subject to taxation for county purposes in lieu of the levies specified in 7-6-2523. Subject to 15-10-420, the all-purpose levy may not exceed the lesser of:

     (a)  55 mills on the dollar; or

     (b)  the total number of mills levied in the prior year pursuant to the levies set forth in 7-6-2523 as certified by the department of revenue under 15-10-202.

     (2)  If the county governing body determines that the interests of the county would be served by an all-purpose levy, it shall specify its intent to impose the all-purpose levy in the resolution approving and adopting the annual budget."



     Section 2.  Section 15-10-202, MCA, is amended to read:

     "15-10-202.  Certification of taxable values and millage rates. By (1) Subject to subsections (2) and (3), by the second Monday in July, the department shall certify to each taxing authority the total taxable value within the jurisdiction of the taxing authority. The department shall also send to each taxing authority a written statement of its best estimate of the total assessed taxable value of all new construction and improvements not included on the previous property tax record and the value of deletions from the previous property tax record. Exclusive of new construction, improvements, and deletions, the department shall certify to each taxing authority a millage rate that will provide the same ad valorem revenue for each taxing authority as was levied during the prior year. For the purpose of calculating the certified millage, the department shall use 95% of the taxable value appearing on the property tax record, exclusive of properties appearing for the first time in the property tax record newly taxable property, as described in 15-10-420(3).

     (2) For tax years beginning after December 31, 2000, if the ownership of centrally assessed property has been transferred in whole or in part to a different owner and the transferred property has a market value of $1 million or more as determined by the department, the department shall determine separately the taxable value of newly taxable property and the taxable value associated with reappraisal of centrally assessed property that is transferred to a different owner. The department shall certify to each taxing authority, at the time specified in subsection (1), the taxable value of newly taxable property and the total taxable value of centrally assessed property, exclusive of newly taxable property, that has been transferred to a different owner.

     (3) For tax year 2001, for property that was classified as class thirteen property in tax year 2000 and that was transferred in whole or in part to a different owner in tax year 1999, if the transferred property has a market value of $1 million or more as determined by the department, the department shall determine separately the taxable value of newly taxable property and the taxable value associated with reappraisal of class thirteen property that was transferred to a different owner. The department shall recertify, at the time specified in subsection (1), to each taxing authority that had class thirteen property described in this subsection (3) in tax year 2000 the recertified total taxable value of newly taxable property."



     Section 3.  Section 15-10-206, MCA, is amended to read:

     "15-10-206.  Exceptions for Notification of decisions of tax appeal boards. The department shall notify each taxing authority of any change in the property tax record that results from actions by the state or county tax appeal boards. An increase in the taxing authority's millage above the millage certified by the department or adopted by resolution or ordinance of the governing body of the taxing authority that is required solely by a reduction of the property tax record by the state or county tax appeal board may be adopted without further notice."



     Section 4.  Section 15-10-420, MCA, is amended to read:

     "15-10-420.  Procedure for calculating levy. (1) (a) A Subject to the provisions of this section, a governmental entity that is authorized to impose mills may impose a mill levy sufficient to generate the amount of property taxes actually assessed in the prior year, even if that levy is greater than the levy established by law. The maximum number of mills that a governmental entity may impose is established by calculating the number of mills required to generate the amount of property tax actually assessed in the governmental unit in the prior year based on the current year taxable value, less the value of newly taxable property.

     (b) A governmental entity that does not impose the maximum number of mills authorized under subsection (1)(a) may carry forward the authority to impose the number of mills equal to the difference between the actual number of mills imposed and the maximum number of mills authorized to be imposed. The mill authority carried forward may be imposed in a subsequent tax year.

     (2)  A governmental entity may apply the levy calculated pursuant to subsection (1) plus any additional levies authorized by the voters to all property in the governmental unit, including newly taxable property.

     (3) (a) For purposes of this section, newly taxable property includes:

     (a)(i)  annexation of real property and improvements into a taxing unit;

     (b)(ii) construction, expansion, or remodeling of improvements;

     (c)(iii) transfer of property into a taxing unit;

     (d)(iv) subdivision of real property; and

     (e)  reclassification of property;

     (f)(v) except as provided in subsection (3)(b), transfer of property from tax-exempt to taxable status; and

     (g)  revaluations caused by expansion, addition, replacement, or remodeling of improvements.

     (b) For the purposes of this section, newly taxable property does not include:

     (i) reclassification of property; or

     (ii) an increase in the appraised value of land that was previously valued at 75% of the value of improvements on the land as provided in 15-7-111(4) and (5), as those subsections applied on December 31, 2001.

     (4) For the purposes of subsection (3)(a)(iv), the subdivision of real property includes the first sale of real property that results in the property being taxable as class four property or as nonagricultural land as described in 15-6-133(1)(c).

     (4)(5)  Subsection (1) does not apply to school district general fund levies and the school district levy for tuition obligations established in 20-5-324(5).

     (5)(6)  For purposes of subsection (1), taxes imposed:

     (a)  include registration fees imposed on light vehicles under 61-3-561 and distributed under 61-3-509(2); and

     (b)  do not include net or gross proceeds taxes received under 15-6-131 and 15-6-132.

     (6)(7) (a) In determining the maximum number of mills in subsection (1), the governmental entity shall take into account any change from the prior year in the amount of statutory reimbursements for changes in the property tax laws.

     (b) The amount of motor vehicle disposition under 61-3-509(2), as that section read on December 31, 2000, is an increased statutory reimbursement. It The governmental entity may increase the number of mills to account for a decrease in reimbursements and shall decrease the number of mills to fully account for any increase in reimbursements.

     (7)(8)  The department shall calculate, on a statewide basis, the number of mills to be imposed for purposes of 15-10-107, 20-9-331, 20-9-333, 20-9-360, 20-25-423, 20-25-439, and 53-2-813. However, the number of mills calculated by the department may not exceed the mill levy limits established in those sections.

     (9) (a) The provisions of subsection (1) do not prevent or restrict:

     (i) a judgment levy under 2-9-316, 7-6-4209, or 7-7-2202;

     (ii) a levy to repay taxes paid under protest as provided in 15-1-402; or

     (iii) an emergency levy authorized under 10-3-405, 20-9-168, or 20-15-326.

     (b) A levy authorized under subsection (9)(a) may not be included in the amount of property taxes actually assessed in a subsequent year.

     (8)(10)  The department may adopt rules to implement this section. The rules may include a method for calculating the percentage of change in valuation for purposes of determining the elimination of property, new improvements, or newly taxable property in a governmental unit."



     Section 5.  Certain governmental entities to recalculate mill levy. (1) (a) If the taxable value of all property, exclusive of the recertified value of newly taxable property as determined under 15-10-202(3), is more than 101% of the total taxable value of all property originally certified, exclusive of newly taxable property, by the department in tax year 2000 to the governmental entity authorized to impose mills, the governmental entity shall recalculate the mill levy under 15-10-420(1) for tax year 2000. The governmental entity shall not recalculate taxes for tax year 2000.

     (b) The governmental entity shall then multiply the total taxable value in tax year 2000 by the mill levy determined under subsection (1)(a). The governmental entity shall use that amount as the amount of property tax that was actually generated in tax year 2000.

     (2) For the purpose of 15-10-420(1), the amount of property tax actually generated in tax year 2000 as determined in subsection (1)(b) is the amount that must be used by the governmental entity for imposing mills in tax year 2001.



     Section 6.  Repealer. Sections 15-10-204, 15-10-205, 15-10-207, and 15-10-208, MCA, are repealed.



     Section 7.  Effective date. [This act] is effective on passage and approval.



     Section 8.  Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to property tax years beginning after December 31, 2000.



     Section 9.  Termination. [Sections 2(3) and 5] terminate January 1, 2002.

- END -




Latest Version of SB 501 (SB0501.ENR)
Processed for the Web on April 11, 2001 (4:45PM)

New language in a bill appears underlined, deleted material appears stricken.

Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.

Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)

Prepared by Montana Legislative Services

(406)444-3064