SENATE BILL NO. 370
INTRODUCED BY S. STANG
A BILL FOR AN ACT ENTITLED: "AN ACT ALLOWING ALL MUNICIPALITIES AND COUNTIES, BY A VOTE
OF THE ELECTORATE, TO ADOPT A LOCAL OPTION SALES TAX; REQUIRING THAT A MINIMUM OF 5 33
PERCENT OF LOCAL OPTION SALES TAX REVENUE LEVIED BY A MUNICIPALITY OR COUNTY BE USED
TO REDUCE PROPERTY TAXES THE COUNTYWIDE TEACHERS' RETIREMENT TAX LEVY; PROVIDING FOR
THE DISTRIBUTION OF LOCAL OPTION SALES TAX REVENUE; PROHIBITING DOUBLE TAXATION;
PROVIDING THAT AN EXISTING RESORT TAX IMPOSED BY A RESORT COMMUNITY, RESORT AREA, OR
RESORT AREA DISTRICT REMAINS IN EFFECT AS A LOCAL OPTION SALES TAX; AMENDING SECTIONS
7-6-1501, 7-6-1502, 7-6-1503, 7-6-1504, 7-6-1505, 7-6-1506, 7-6-1507, 7-6-1508, 7-6-1509, 7-6-1531, 7-6-1542,
7-7-4424, AND 7-7-4428, AND 20-9-501, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 7-6-1501, MCA, is amended to read:
"7-6-1501. Resort Local option sales tax -- definitions. As used in 7-6-1501 through 7-6-1509 and [sections 15 14
through 17 16], the following definitions apply:
(1) "Luxuries" means any gift item, luxury item, or other item normally sold to the public or to transient visitors or
tourists GOODS OR SERVICES SOLD AT RETAIL BY THE ESTABLISHMENTS LISTED IN 7-6-1503(2)(A) AND
RENTAL EQUIPMENT AND VEHICLES INTENDED TO BE USED FOR RECREATION, SUCH AS
AUTOMOBILES, RECREATIONAL VEHICLES, BOATS, SNOWMOBILES, SKIS, AND CAMPING EQUIPMENT
GIFT ITEM, LUXURY ITEM, OR OTHER ITEM OR ANY SERVICE NORMALLY SOLD TO THE PUBLIC AND TO
TRANSIENT VISITORS OR TOURISTS. The term does not include food purchased unprepared or unserved, medicine,
medical supplies and services, AUTOMOBILES RENTED AS REPLACEMENT VEHICLES UNDER INSURANCE
CONTRACTS OR AS CUSTOMER LOANERS, appliances, hardware supplies and tools, or any necessities of life.
(2) "Medical supplies" means items that are sold to be used for curative, prosthetic, or medical maintenance purposes, whether or not prescribed by a physician.
(3) "Medicine" means substances sold for curative or remedial properties, including both physician prescribed and over-the-counter medications.
(4) "Resort area" means an area that:
(a) is an unincorporated area and is a defined contiguous geographic area;
(b) has a population of less than 2,500 according to the most recent federal census or federal estimate;
(c) derives the major portion of its economic well-being from businesses catering to the recreational and personal needs of persons traveling to or through the area for purposes not related to their income production; and
(d) has been designated by the department of commerce as a resort area prior to its establishment by the county commissioners as provided in 7-6-1508.
(5) "Resort community" means a community that:
(a) is an incorporated municipality;
(b) has a population of less than 5,500 according to the most recent federal census or federal estimate;
(c) derives the primary portion of its economic well-being related to current employment from businesses catering to the
recreational and personal needs of persons traveling to or through the municipality for purposes not related to their income
production; and
(d) has been designated by the department of commerce as a resort community."
Section 2. Section 7-6-1502, MCA, is amended to read:
"7-6-1502. Resort community Local option taxing authority -- specific delegation. As required by 7-1-112,
7-6-1501 through 7-6-1507 and [sections 15 14 through 17 16] specifically delegate to the electors of each respective resort
community municipality or county the power to authorize their municipality or county to impose a resort local option sales
tax within the county or within the corporate boundary of the municipality as provided in 7-6-1501 through 7-6-1507."
Section 3. Section 7-6-1503, MCA, is amended to read:
"7-6-1503. Limit on resort local option sales tax rate -- LUXURY goods and services subject to tax. (1) The rate of
the resort local option sales tax must be established by the election petition or resolution provided for in 7-6-1504, but the
rate may not exceed 3%.
(2) (a) The resort local option sales tax is a tax on the retail value of all LUXURY goods and services sold AS
PROVIDED IN THE PETITION OR RESOLUTION, except for goods and services sold for resale, within the resort
community municipality or area county by the following establishments:
(i) hotels, motels, and other lodging or camping facilities;
(ii) restaurants, fast food stores, and other food service establishments;
(iii) taverns, bars, night clubs, lounges, and other public establishments that serve beer, wine, liquor, or other alcoholic
beverages by the drink; and
(iv) destination ski resorts and other destination recreational facilities; AND
(V) PLACES THAT CHARGE AN ADMISSION FEE.
(b) Establishments that sell luxuries LUXURY GOODS OR SERVICES, OR BOTH, shall collect a THE SALES tax
on such those luxuries LUXURY GOODS AND SERVICES SUBJECT TO THE TAX."
Section 4. Section 7-6-1504, MCA, is amended to read:
"7-6-1504. Resort Local option sales tax -- election required -- procedure -- notice. (1) A resort community
municipality or area county may not impose or, except as provided in 7-6-1505, amend or repeal a resort local option sales
tax unless the resort local option sales tax question has been submitted to the electorate of the resort community
municipality or area county and approved by a majority of the electors voting on the question.
(2) The resort local option sales tax question may be presented to the electors of:
(a) a resort community municipality by a petition of the electors, as provided by 7-1-4130, 7-5-132, and 7-5-134
through 7-5-137, or by a resolution of the governing body of the resort community municipality; or
(b) a resort area county by a resolution of the board of county commissioners, following receipt of a petition of electors
as provided in 7-6-1508 or by a petition of electors as provided in 7-1-4130 and 7-5-131 through 7-5-137.
(3) If a resort area is in more than one county, the resort tax question must be presented to and approved by the electors
in the resort area of each county.
(4)(3) The petition or resolution referring the taxing question must state:
(a) the rate of the resort local option sales tax;
(b) the duration of the resort local option sales tax;
(c) the date when the tax becomes effective, which date may not be earlier than 35 days after the election; and
(d) the purposes that may be funded by the resort local option sales tax revenue.
(5)(4) Upon receipt of an adequate petition, the governing body may:
(a) call a special election on the resort tax question; or
(b) must have the resort local option sales tax question placed on the ballot at the next regularly scheduled tax election.
(6)(5) (a) Before the resort local option sales tax question is submitted to the electorate of a resort community
municipality or area county, the governing body of the resort community municipality or the board of county
commissioners in the county in which the resort area is located, as applicable, shall publish notice of the goods and services
subject to the resort local option sales tax, in a newspaper that meets the qualifications of subsection (6)(b) (5)(b). The
notice must be published twice, with at least 6 days separating publications. The first publication must be no more than 30
days prior to the election and the last no less than 3 days prior to the election.
(b) The newspaper must be:
(i) of general, paid circulation with a second-class mailing permit;
(ii) published at least once a week; and
(iii) published in the county where the election will take place.
(7)(6) The question of the imposition of a resort local option sales tax may not be placed before the electors more than
once in any fiscal year."
Section 4. Section 7-6-1504, MCA, is amended to read:
"7-6-1504. Resort Local option sales tax -- election required -- procedure -- notice. (1) A resort community
municipality or area county may not impose or, except as provided in 7-6-1505, amend or repeal a resort local option sales
tax unless the resort local option sales tax question has been submitted to the electorate of the resort community
municipality or area county and approved by a majority of the electors voting on the question.
(2) The resort local option sales tax question may be presented to the electors of:
(a) a resort community municipality by a petition of the electors, as provided by 7-1-4130, 7-5-132, and 7-5-134
through 7-5-137, or by a resolution of the governing body of the resort community municipality; or
(b) a resort area county by a resolution of the board of county commissioners, following receipt of a petition of electors
as provided in 7-6-1508 or by a petition of electors as provided in 7-1-4130 and 7-5-131 through 7-5-137.
(3) If a resort area is in more than one county, the resort tax question must be presented to and approved by the electors
in the resort area of each county.
(4)(3) The petition or resolution referring the taxing question must state:
(A) THE LUXURY GOODS AND SERVICES SUBJECT TO THE LOCAL OPTION SALES TAX;
(a)(B) the rate of the resort local option sales tax;
(b)(C) the duration of the resort local option sales tax;
(c)(D) the date when the tax becomes effective, which date may not be earlier than 35 days after the election; and
(d)(E) the purposes that may be funded by the resort local option sales tax revenue.
(5)(4) Upon receipt of an adequate petition, the governing body may:
(a) call a special election on the resort local option sales tax question; or
(b) have the resort local option sales tax question placed on the ballot at the next regularly scheduled election.
(6)(5) (a) Before the resort local option sales tax question is submitted to the electorate of a resort community
municipality or area county, the governing body of the resort community municipality or the board of county
commissioners in the county in which the resort area is located, as applicable, shall publish notice of the goods and services
subject to the resort local option sales tax, in a newspaper that meets the qualifications of subsection (6)(b) (5)(b). The
notice must be published twice, with at least 6 days separating publications. The first publication must be no more than 30
days prior to the election and the last no less than 3 days prior to the election.
(b) The newspaper must be:
(i) of general, paid circulation with a second-class mailing permit;
(ii) published at least once a week; and
(iii) published in the county where the election will take place.
(7)(6) The question of the imposition of a resort local option sales tax may not be placed before the electors more than
once in any fiscal year."
Section 5. Section 7-6-1505, MCA, is amended to read:
"7-6-1505. Resort Local option sales tax administration. (1) In this section, "governing body" means:
(a) the governing body of a resort community municipality;
(b) if the resort local option sales tax has been approved by the electors of a resort area county, the board of county
commissioners; or
(c) if the electors of the resort area establish a resort area district, the district board of directors.
(2) Not less than 30 days prior to the date that the resort local option sales tax becomes effective, the governing body
shall enact an administrative ordinance governing the collection and reporting of the resort local option sales taxes. This
administrative ordinance may be amended at any time as may be necessary to effectively administer the resort local option
sales tax.
(3) The administrative ordinance must specify:
(a) the times that taxes collected by businesses are to be remitted to the governing body;
(b) the office, officer, or employee of the governing body responsible for receiving and accounting for the resort local
option sales tax receipts;
(c) the office, officer, or employee of the governing body responsible for enforcing the collection of resort local option
sales taxes and the methods and procedures to be used in enforcing the collection of resort local option sales taxes due; and
(d) the penalties for failure to report local option sales taxes due, failure to remit taxes due, and violations of the administrative ordinance. The penalties may include:
(i) criminal penalties not to exceed a fine of $1,000 or 6 months' imprisonment, or both;
(ii) civil penalties if the governing body prevails in a suit for the collection of resort local option sales taxes, not to
exceed 50% of the resort local option sales taxes found due plus the costs and attorney fees incurred by the governing body
in the action;
(iii) revocation of a county or municipal business license held by the offender; and
(iv) any other penalties that may be applicable for violation of an ordinance.
(4) The administrative ordinance may include:
(a) further clarification and specificity in the categories of goods and services that are subject to the resort local option
sales tax consistent with 7-6-1503;
(b) authorization for business administration and prepayment discounts. The discount authorization may allow each vendor and commercial establishment to:
(i) withhold up to 5% of the resort local option sales taxes collected to defray their costs for the administration of the
tax collection; or
(ii) receive a refund of up to 5% of the resort local option sales tax payment received from them by the governing body
10 days prior to the collection due date established by the administrative ordinance.
(c) other administrative details necessary for the efficient and effective administration of the tax."
Section 6. Section 7-6-1506, MCA, is amended to read:
"7-6-1506. Use of resort community local option sales tax revenues revenue -- bond issue -- pledge. (1) Unless
otherwise restricted by the voter-approved tax authorization provided for in 7-6-1504 and except as provided in 7-6-1507, a
resort community municipality or county may appropriate and expend revenues revenue derived from a resort local option
sales tax for any activity, undertaking, or administrative service that the municipality or county is authorized by law to
perform, including costs resulting from the imposition of the tax.
(2) A resort community municipality or county may issue bonds to provide, install, or construct any of the public
facilities, improvements, or undertakings authorized under 7-7-4101, 7-7-4404, and 7-12-4102. Bonds issued under this
section must be authorized by a resolution of the governing body, stating the terms, conditions, and covenants of the
municipality or county as the governing body considers appropriate. The bonds may be sold at a discount at a public or
private sale.
(3) A resort community municipality or county may pledge for repayment of bonds issued under this section the
revenues revenue derived from a resort local option sales tax, special assessments levied for and revenues revenue collected
from the facilities, improvements, or undertakings for which the bonds are issued, and any other source of revenue
authorized by the legislature to be imposed or collected by the resort community municipality or county. Such The bonds
do not constitute debt for purposes of any statutory debt limitation, provided that in the resolution authorizing the issuance
of the bonds, the municipality or county determines that the resort local option sales tax revenues revenue, special
assessments levied for and revenues revenue from such the facilities, improvements or undertakings, or other sources of
revenue, if any, pledged to the payment of the bonds will be sufficient in each year to pay the principal thereof of the bonds
and interest thereon on the bonds when due. Bonds may not be issued pledging proceeds of the resort local option sales tax
for repayment unless the municipality or county in the resolution authorizing issuance of the bonds determines that in any
fiscal year, the annual revenues revenue expected to be derived from the resort local option sales tax, less the amount
required to reduce property taxes pursuant to 7-6-1507, equals at least not less than 125% of the average amount of the
principal and interest payable from the resort local option sales tax revenues revenue on the bonds and any other
outstanding bonds payable from the resort local option sales tax except any bonds to be refunded upon the issuance of the
proposed bonds."
Section 7. Section 7-6-1507, MCA, is amended to read:
"7-6-1507. Resort community Local option sales tax -- municipal or county property tax relief. (1) Annually
anticipated receipts from the resort local option sales tax imposed by a municipality or by a county must be applied to
reduce the municipal or county COUNTYWIDE TEACHERS' RETIREMENT FUND property tax levy UNDER 20-9-501
for the fiscal year in an amount equal to at least 5% 33% of the resort local option sales tax revenues revenue derived
during the preceding fiscal year.
(2) A resort community municipality or county that received more resort local option sales tax revenues revenue than
had been included in the annual municipal budget shall establish a municipal property tax relief fund. All resort local option
sales tax revenues revenue received in excess of the budget amount must be placed in the fund. The entire fund must be
used to replace municipal property taxes in the ensuing fiscal year."
Section 8. Section 7-6-1508, MCA, is amended to read:
"7-6-1508. Establishment of a resort area -- taxing authority -- approval by electorate. (1) The establishment of a
resort area for the purpose of imposing a resort local option sales tax may be initiated by a written petition to the board of
county commissioners of the county in which the area is located. The petition must contain a description of the proposed
resort area and must be signed by at least 15% of the electors residing in the proposed area.
(2) The petition must include a proposal to impose a resort local option sales tax within the proposed resort area,
including the rate, duration, effective date, and purpose of the tax as provided in 7-6-1504.
(3) Upon receiving a petition to establish a resort area, the board of county commissioners shall present the question to the electors residing in the proposed resort area as provided in 7-6-1504."
Section 9. Section 7-6-1509, MCA, is amended to read:
"7-6-1509. Use of resort area local option sales tax. (1) (a) Except as provided in subsection (1)(b) or unless
otherwise provided by the resolution approved by the electors under 7-6-1504, the board of county commissioners shall
appropriate and spend revenue derived from a resort area local option sales tax for the purpose stated in the resolution.
(b) If the electors of a resort area have established a resort area district, the district board of directors shall appropriate
and spend revenue derived from a resort area local option sales tax for the purpose stated in the resolution.
(2) If the electors of a resort area have not established a resort area district, the resort area shall reimburse the board of
county commissioners for costs associated with the collection, administration, and litigation of the resort area local option
sales tax."
Section 10. Section 7-6-1531, MCA, is amended to read:
"7-6-1531. Resort area district -- definitions. For the purposes of 7-6-1531 through 7-6-1550, unless the context requires otherwise, the following definitions apply:
(1) "Board" means the board of directors of the resort area district.
(2) "Resort area" means a resort area created under 7-6-1508 that:
(a) is an unincorporated area and a defined geographic area;
(b) has a population of less than 2,500 according to the most recent federal census or federal estimate;
(c) derives the major portion of its economic well-being from businesses catering to the recreational and personal needs of persons traveling to or through the area for purposes not related to the persons' income production; and
(d) has been designated by the department of commerce as a resort area prior to its establishment by the board of county commissioners as provided in 7-6-1508.
(3) "Resort area district" means a district created under 7-6-1531 through 7-6-1550 that has been established as a resort area under 7-6-1508."
Section 11. Section 7-6-1542, MCA, is amended to read:
"7-6-1542. Resort area district board powers related to administration and expenditure of resort local option
sales tax revenue. The board of a resort area district created under 7-6-1531 through 7-6-1550 may:
(1) appropriate and expend revenue from a resort local option sales tax for any activity, undertaking, or administrative
service authorized in the resolution creating a resort area and adopting a resort local option sales tax; and
(2) adopt administrative ordinances necessary to aid in the collection or reporting of resort local option sales taxes and
in the expenditure of resort local option sales tax revenue."
Section 12. Section 7-7-4424, MCA, is amended to read:
"7-7-4424. Undertakings to be self-supporting. (1) The governing body of a municipality issuing bonds pursuant to
this part shall prescribe and collect reasonable rates, fees, or charges for the services, facilities, and commodities of the
undertaking and shall revise the rates, fees, or charges from time to time whenever necessary so that the undertaking is and
remains self-supporting. The property taxes specifically authorized to be levied for the general purpose served by an
undertaking or resort local option sales taxes approved, levied, and appropriated to an undertaking in compliance with
7-6-1501 through 7-6-1509 constitute revenue of the undertaking and may not result in an undertaking being considered not
self-supporting.
(2) The rates, fees, or charges prescribed, along with any appropriated property or resort local option sales tax
collections, must produce revenue at least sufficient to:
(a) pay when due all bonds and interest on the bonds, the payment of which the revenue has been pledged, charged, or otherwise encumbered, including reserves for the bonds; and
(b) provide for all expenses of operation and maintenance of the undertaking, including reserves."
Section 13. Section 7-7-4428, MCA, is amended to read:
"7-7-4428. Covenants in resolution authorizing issuance of bonds. Any resolution or resolutions authorizing the issuance of bonds under this part may contain covenants as to:
(1) the purpose or purposes to which the proceeds of sale of the bonds may be applied and the disposition of the proceeds;
(2) the use and disposition of the revenue of the undertaking for which the bonds are to be issued, including the creation
and maintenance of reserves and including the pledge or appropriation of all or a portion of the property and resort local
option sales tax revenue referred to in 7-7-4424;
(3) the transfer, from the general fund of the municipality to the account or accounts of the undertaking, of an amount equal to the cost of furnishing the municipality or any of its departments, boards, or agencies with the services, facilities, or commodities of the undertaking;
(4) the issuance of other or additional bonds payable from the revenue of the undertaking;
(5) the operation and maintenance of the undertaking;
(6) the insurance to be carried on the undertaking and the use and disposition of insurance money;
(7) books of account and the inspection and audit of the books; and
(8) the terms and conditions upon which the holders or trustees of the bonds or any proportion of the bonds are entitled to the appointment of a receiver by the district court having jurisdiction. The receiver may:
(a) enter and take possession of the undertaking;
(b) operate and maintain the undertaking;
(c) prescribe rates, fees, or charges, subject to the approval of the public service commission; and
(d) collect, receive, and apply all revenue thereafter arising from the undertaking in the same manner as the municipality itself might do."
NEW SECTION. Section 14. Distribution of local option sales tax proceeds. (1) A local option sales tax imposed by the county must be levied countywide. Unless otherwise provided by agreement with municipalities, the county shall distribute local option sales tax revenue to the municipalities in the following manner:
(a) 50% of the amount collected in the county, based on the ratio of population of the municipality to the population of the county derived from the most recent estimates by the U.S. bureau of the census or if estimates are not available, derived from the most recent decennial U.S. census; and
(b) 50% based on the point of origin of the local option sales tax revenue.
(2) For purposes of revenue distribution under this section, a resort area or resort area district must be treated in the same manner as a municipality.
NEW SECTION. Section 15. Double taxation prohibited. (1) A local option sales tax may not be levied on the same person or transaction by more than one local government, including a resort area or resort area district.
(2) If the electorate of a county approves a local option sales tax after the electorate of a municipality, resort area, or resort area district in the county has approved a local option sales tax on the same person or transaction at the same or a higher rate than the tax imposed by the county, persons or transactions in the municipality, resort area, or resort area district are exempt from the county tax as long as the local option sales tax imposed by the municipality, resort area, or resort area district is in effect. If the local option sales tax imposed by the municipality, resort area, or resort area district is at a lower rate than the tax imposed by the county, the governing body of the municipality or the board, as applicable, shall repeal the tax without a vote of the electorate.
(3) A municipality, resort area, or resort area district may not enact a local option sales tax if a local option sales tax is in effect in the county within which the municipality, resort area, or resort area district lies.
NEW SECTION. Section 16. Transition RESORT TAX -- GRANDFATHER PROVISION --
REESTABLISHMENT. (1) A resort tax that was enacted in a resort community, resort area, or resort area district prior to
[the effective date of this act] remains in effect as a local option sales tax under the provisions of [this act] until:
(1) the rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective
date of this act] have been satisfied, resolved, or otherwise terminated under the original requirements authorizing the resort
tax;
(2) the electorate of the municipality, resort area, or resort area district repeals the original authority to enact a resort tax
and enacts instead a local option sales tax under the provisions of [this act] or dissolves the resort area district; or
(3) the electorate of the county enacts a local option sales tax under the provisions of [this act]. IN THE MANNER
ADOPTED BY THE RESORT COMMUNITY, RESORT AREA, OR RESORT AREA DISTRICT UNDER 7-6-1501
THROUGH 7-6-1550, AS THOSE SECTIONS READ PRIOR TO [THE EFFECTIVE DATE OF THIS ACT]. THE
RESORT TAX REMAINS IN EFFECT ON THE ITEMS AND FOR THE DURATION APPROVED BY THE
ELECTORATE UNDER 7-6-1504. PRIOR TO ITS EXPIRATION AND IF APPROVED BY THE ELECTORATE, A
RESORT TAX MAY BE REESTABLISHED FOR A SPECIFIC DURATION.
(2) A RESORT COMMUNITY, RESORT AREA, OR RESORT AREA DISTRICT ESTABLISHED PRIOR TO [THE EFFECTIVE DATE OF THIS ACT] REMAINS SEPARATE FROM ANY COUNTY ADOPTING A LOCAL OPTION SALES TAX UNLESS THE ELECTORATE OF THE RESORT COMMUNITY, RESORT AREA, OR RESORT AREA DISTRICT AGREES TO ABANDON THE RESORT TAX AND ADOPT A LOCAL OPTION TAX. ALL PROCEEDS OF A RESORT TAX MUST BE DISTRIBUTED TO THE RESORT COMMUNITY, RESORT AREA, OR RESORT AREA DISTRICT IN WHICH IT WAS COLLECTED. ANY LOCAL OPTION TAX IMPOSED BY A COUNTY MAY NOT BE IMPOSED IN THE RESORT COMMUNITY, RESORT AREA, OR RESORT AREA DISTRICT. THE PROCEEDS OF A COUNTY LOCAL OPTION SALES TAX MAY NOT BE DISTRIBUTED TO THE RESORT COMMUNITY, RESORT AREA, OR RESORT AREA DISTRICT.
SECTION 17. SECTION 20-9-501, MCA, IS AMENDED TO READ:
"20-9-501. Retirement fund. (1) The trustees of a district employing personnel who are members of the teachers' retirement system or the public employees' retirement system or who are covered by unemployment insurance or who are covered by any federal social security system requiring employer contributions shall establish a retirement fund for the purposes of budgeting and paying the employer's contributions to the systems. The district's contribution for each employee who is a member of the teachers' retirement system must be calculated in accordance with Title 19, chapter 20, part 6. The district's contribution for each employee who is a member of the public employees' retirement system must be calculated in accordance with 19-3-316. The district's contributions for each employee covered by any federal social security system must be paid in accordance with federal law and regulation. The district's contribution for each employee who is covered by unemployment insurance must be paid in accordance with Title 39, chapter 51, part 11.
(2) The trustees of a district required to make a contribution to a system referred to in subsection (1) shall include in the retirement fund of the final budget the estimated amount of the employer's contribution. After the final retirement fund budget has been adopted, the trustees shall pay the employer contributions to the systems in accordance with the financial administration provisions of this title.
(3) When the final retirement fund budget has been adopted, the county superintendent shall establish the levy requirement by:
(a) determining the sum of the money available to reduce the retirement fund levy requirement by adding:
(i) any anticipated money that may be realized in the retirement fund during the ensuing school fiscal year, including
anticipated revenue from property taxes and fees imposed under 7-6-1507, 23-2-517, 23-2-803, 61-3-504, 61-3-521,
61-3-527, 61-3-529, 61-3-537, and 67-3-204;
(ii) oil and natural gas production taxes;
(iii) anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325;
(iv) coal gross proceeds taxes under 15-23-703;
(v) any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the retirement fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the retirement fund. The retirement fund operating reserve may not be more than 35% of the final retirement fund budget for the ensuing school fiscal year and must be used for the purpose of paying retirement fund warrants issued by the district under the final retirement fund budget.
(vi) any other revenue anticipated that may be realized in the retirement fund during the ensuing school fiscal year, excluding any guaranteed tax base aid.
(b) notwithstanding the provisions of subsection (8), subtracting the money available for reduction of the levy requirement, as determined in subsection (3)(a), from the budgeted amount for expenditures in the final retirement fund budget.
(4) The county superintendent shall:
(a) total the net retirement fund levy requirements separately for all elementary school districts, all high school districts, and all community college districts of the county, including any prorated joint district or special education cooperative agreement levy requirements; and
(b) report each levy requirement to the county commissioners on the fourth Monday of August as the respective county levy requirements for elementary district, high school district, and community college district retirement funds.
(5) The county commissioners shall fix and set the county levy in accordance with 20-9-142.
(6) The net retirement fund levy requirement for a joint elementary district or a joint high school district must be prorated to each county in which a part of the district is located in the same proportion as the district ANB of the joint district is distributed by pupil residence in each county. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county as provided in 20-9-151.
(7) The net retirement fund levy requirement for districts that are members of special education cooperative agreements must be prorated to each county in which the district is located in the same proportion as the special education cooperative budget is prorated to the member school districts. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county in the same manner as provided in 20-9-151, and the county commissioners shall fix and levy the net retirement fund levy for each county in the same manner as provided in 20-9-152.
(8) The county superintendent shall calculate the number of mills to be levied on the taxable property in the county to finance the retirement fund net levy requirement by dividing the amount determined in subsection (4)(a) by the sum of:
(a) the amount of guaranteed tax base aid that the county will receive for each mill levied, as certified by the superintendent of public instruction; and
(b) the taxable valuation of the district divided by 1,000."
NEW SECTION. Section 18. Codification instruction. [Sections 15 14 through 17 16] are intended to be codified as
an integral part of Title 7, chapter 6, part 15, and the provisions of Title 7, chapter 6, part 15, apply to [sections 1514
through 17 16].
NEW SECTION. Section 19. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 20. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section
17, of the Montana constitution, is declared invalid, then [section 4] is void.
NEW SECTION. Section 20. Effective date. (1) Except as provided in subsection (2), [this [THIS act] is effective on
passage and approval.
(2) If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid,
then [section 5] is effective on the date of declaration.
- END -
Latest Version of SB 370 (SB0370.04)
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