SENATE BILL NO. 119

INTRODUCED BY DEVLIN G

A BILL FOR AN ACT ENTITLED: "AN ACT ALLOWING THE STATE OF MONTANA TO RETAIN ADDITIONAL TAX REVENUE RESULTING FROM RECLASSIFICATION OF AGRICULTURAL LAND; SUBMITTING THE PROVISION OF ALLOWING THE STATE TO RETAIN THE ADDITIONAL REVENUE TO THE QUALIFIED ELECTORS OF MONTANA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."

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

NEW SECTION. Section 1. Retention of additional property tax revenue. (1) The state of Montana may retain property tax collections in tax year 2000 that exceed property tax collections in tax year 1999 resulting from an increase in the value of parcels of land that have been reclassified as nonagricultural land under the provisions of 15-7-202(3).

(2) The retention of excess property tax collections applies only to mills levied for:

(a) elementary and high school purposes under 20-9-331 and 20-9-333;

(b) state school equalization purposes under 20-9-360;

(c) the support of public education institutions under 20-25-423; and

(d) the support of vocational-technical education under 20-25-439.

NEW SECTION. Section 2. Coordination instruction. If LC 213 is not passed and approved, this act is void.

NEW SECTION. Section 3. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the tax election to be held in 1999 by printing on the ballot the full title of this act and the following:

SHALL THE STATE BE ALLOWED TO RETAIN ADDITIONAL PROPERTY TAX REVENUE IN TAX YEAR 2000 RESULTING FROM THE RECLASSIFICATION OF PARCELS OF LAND FROM AGRICULTURAL TO NONAGRICULTURAL?

[]	FOR allowing the state to retain additional property tax revenue in tax year 2000.

[]	AGAINST allowing the state to retain additional property tax revenue in tax year 2000.

NEW SECTION. Section 4. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.

NEW SECTION. Section 5. Effective date -- applicability. If approved by the electorate, this act is effective January 1, 2000, and applies to property tax years beginning after December 31, 1999.

- END -