HOUSE BILL NO. 3
INTRODUCED BY B. STORY
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR A REDUCTION IN PROPERTY TAXES BY
INCREASING DIRECT STATE AID TO SCHOOL DISTRICTS FROM 41.8 PERCENT TO 44.7 PERCENT;
CLARIFYING THAT ANTICIPATED REVENUE RECEIVED DURING THE SCHOOL FISCAL YEAR INCLUDES
REIMBURSEMENTS FROM LIGHT VEHICLE TAXES RECEIVED DURING FISCAL YEAR 1999; PROVIDING A
COORDINATION INSTRUCTION; PROVIDING THAT THE PROPOSED ACT BE SUBMITTED TO THE
QUALIFIED ELECTORS OF MONTANA; AMENDING SECTIONS 15-10-420, 20-9-141, 20-9-306, 20-9-367,
20-9-368, AND 61-3-509, MCA, AND SECTION 167, CHAPTER 584, LAWS OF 1999; AND PROVIDING A
DELAYED EFFECTIVE DATE DATES AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-10-420, MCA, is amended to read:
"15-10-420. Procedure for calculating levy. (1) 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.
(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) For purposes of this section, newly taxable property includes:
(a) annexation of real property and improvements into a taxing unit;
(b) construction, expansion, or remodeling of improvements;
(c) transfer of property into a taxing unit;
(d) subdivision of real property;
(e) reclassification of property;
(f) transfer of property from tax-exempt to taxable status; and
(g) revaluations caused by expansion, addition, replacement, or remodeling of improvements.
(4) 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) For purposes of subsection (1), taxes imposed do not include net or gross proceeds taxes received under 15-6-131 and 15-6-132.
(6) 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. The amount of motor vehicle disposition under 61-3-509(2) is a statutory reimbursement. It 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) The department shall calculate 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.
(8) 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 2. Section 20-9-141, MCA, is amended to read:
"20-9-141. Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:
(a) Determine the funding required for the district's final general fund budget less the sum of direct state aid and the special education allowable cost payment for the district by totaling:
(i) the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and
(ii) any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.
(b) Determine the money available for the reduction of the property tax on the district for the general fund by totaling:
(i) the general fund balance reappropriated, as established under the provisions of 20-9-104;
(ii) 98% OF actual amounts received in fiscal year 1999 for light vehicle taxes under 61-3-504;
(ii)(iii) amounts received in the last fiscal year for which revenue reporting was required for each of the following:
(A) revenue from taxes and fees imposed under 23-2-517, 23-2-803, 61-3-521, 61-3-527, 61-3-529, and 67-3-204;
(B) interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4); and
(C) any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any
guaranteed tax base aid; and
(D) reimbursements for unrealized motor vehicle tax revenue, as provided in 61-3-509(1);
(iii)(iv) anticipated tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323, except
the amount of tuition received for a pupil who is a child with a disability in excess of the amount received for a pupil
without disabilities, as calculated under 20-5-323(2);
(iv) anticipated revenue from taxes and fees imposed under 61-3-504 and 61-3-537, which for the fiscal year beginning
July 1, 2000, may not be less than 75% of the previous year's revenue from these sources;
(v) anticipated oil and natural gas production taxes;
(vi) pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703 and property tax reimbursements under 15-1-111, 15-1-112, and section 167, Chapter 584, Laws of 1999; and
(vii) anticipated revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702.
(c) Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.
(d) Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as provided in 20-9-353 to determine any additional general fund levy requirements.
(2) The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:
(a) the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and
(b) the current total taxable valuation of the district, as certified by the department of revenue under 15-10-202, divided by 1,000.
(3) The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.
(4) For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703 and property tax reimbursements under 15-1-111, 15-1-112, and section 167, Chapter 584, Laws of 1999."
Section 3. Section 20-9-306, MCA, is amended to read:
"20-9-306. (Temporary) Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "BASE" means base amount for school equity.
(2) "BASE aid" means:
(a) direct state aid for 41.1% of the basic entitlement and 41.1% of the total per-ANB entitlement for the general fund budget of a district; and
(b) guaranteed tax base aid for an eligible district for any amount up to 38.9% of the basic entitlement, up to 38.9% of the total per-ANB entitlement budgeted in the general fund budget of a district, and up to 40% of the special education allowable cost payment.
(3) "BASE budget" means the minimum general fund budget of a district, which includes 80% of the basic entitlement, 80% of the total per-ANB entitlement, and up to 140% of the special education allowable cost payment.
(4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366 through 20-9-369.
(5) "BASE funding program" means the state program for the equitable distribution of the state's share of the cost of Montana's basic system of public elementary schools and high schools, through county equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in support of the BASE budgets of districts and special education allowable cost payments as provided in 20-9-321.
(6) "Basic entitlement" means:
(a) $200,000 for each high school district;
(b) $18,000 for each elementary school district or K-12 district elementary program without an approved and accredited junior high school or middle school; and
(c) the prorated entitlement for each elementary school district or K-12 district elementary program with an approved and accredited junior high school or middle school, calculated as follows:
(i) $18,000 times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten through grade 8; plus
(ii) $200,000 times the ratio of the ANB for grades 7 and 8 to the total ANB of kindergarten through grade 8.
(7) "Direct state aid" means 41.1% of the basic entitlement and 41.1% of the total per-ANB entitlement for the general fund budget of a district and funded with state and county equalization aid.
(8) "Maximum general fund budget" means a district's general fund budget amount calculated from the basic entitlement for the district, the total per-ANB entitlement for the district, and up to 153% of special education allowable cost payments.
(9) "Over-BASE budget levy" means the district levy in support of any general fund amount budgeted that is above the BASE budget and below the maximum general fund budget for a district.
(10) "Total per-ANB entitlement" means the district entitlement resulting from the following calculations:
(a) for a high school district or a K-12 district high school program, a maximum rate of $4,821 for the first ANB is decreased at the rate of 50 cents per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB;
(b) for an elementary school district or a K-12 district elementary program without an approved and accredited junior high school or middle school, a maximum rate of $3,529 for the first ANB is decreased at the rate of 20 cents per ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(c) for an elementary school district or a K-12 district elementary program with an approved and accredited junior high school or middle school, the sum of:
(i) a maximum rate of $3,529 for the first ANB for kindergarten through grade 6 is decreased at the rate of 20 cents per ANB for each additional ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(ii) a maximum rate of $4,821 for the first ANB for grades 7 and 8 is decreased at the rate of 50 cents per ANB for each additional ANB for grades 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB. (Terminates June 30, 2000--sec. 10, Ch. 211, L. 1999.)
20-9-306. (Effective July 1, 2000) Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "BASE" means base amount for school equity.
(2) "BASE aid" means:
(a) direct state aid for 41.8% 44.7% of the basic entitlement and 41.8% 44.7% of the total per-ANB entitlement for the
general fund budget of a district; and
(b) guaranteed tax base aid for an eligible district for any amount up to 38.2% 35.3% of the basic entitlement, up to
38.2% 35.3% of the total per-ANB entitlement budgeted in the general fund budget of a district, and up to 40% of the
special education allowable cost payment.
(3) "BASE budget" means the minimum general fund budget of a district, which includes 80% of the basic entitlement, 80% of the total per-ANB entitlement, and up to 140% of the special education allowable cost payment.
(4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366 through 20-9-369.
(5) "BASE funding program" means the state program for the equitable distribution of the state's share of the cost of Montana's basic system of public elementary schools and high schools, through county equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in support of the BASE budgets of districts and special education allowable cost payments as provided in 20-9-321.
(6) "Basic entitlement" means:
(a) $200,000 for each high school district;
(b) $18,000 for each elementary school district or K-12 district elementary program without an approved and accredited junior high school or middle school; and
(c) the prorated entitlement for each elementary school district or K-12 district elementary program with an approved and accredited junior high school or middle school, calculated as follows:
(i) $18,000 times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten through grade 8; plus
(ii) $200,000 times the ratio of the ANB for grades 7 and 8 to the total ANB of kindergarten through grade 8.
(7) "Direct state aid" means 41.8% 44.7% of the basic entitlement and 41.8% 44.7% of the total per-ANB entitlement
for the general fund budget of a district and funded with state and county equalization aid.
(8) "Maximum general fund budget" means a district's general fund budget amount calculated from the basic entitlement for the district, the total per-ANB entitlement for the district, and up to 153% of special education allowable cost payments.
(9) "Over-BASE budget levy" means the district levy in support of any general fund amount budgeted that is above the BASE budget and below the maximum general fund budget for a district.
(10) "Total per-ANB entitlement" means the district entitlement resulting from the following calculations:
(a) for a high school district or a K-12 district high school program, a maximum rate of $4,869 for the first ANB is decreased at the rate of 50 cents per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB;
(b) for an elementary school district or a K-12 district elementary program without an approved and accredited junior high school or middle school, a maximum rate of $3,653 for the first ANB is decreased at the rate of 20 cents per ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(c) for an elementary school district or a K-12 district elementary program with an approved and accredited junior high school or middle school, the sum of:
(i) a maximum rate of $3,653 for the first ANB for kindergarten through grade 6 is decreased at the rate of 20 cents per ANB for each additional ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(ii) a maximum rate of $4,869 for the first ANB for grades 7 and 8 is decreased at the rate of 50 cents per ANB for each additional ANB for grades 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB."
Section 4. Section 20-9-367, MCA, is amended to read:
"20-9-367. (Temporary) Eligibility to receive guaranteed tax base aid or state advance or reimbursement for school facilities. (1) If the district guaranteed tax base ratio of any elementary or high school district is less than the corresponding statewide elementary or high school guaranteed tax base ratio, the district may receive guaranteed tax base aid based on the number of mills levied in the district in support of up to 38.9% of the basic entitlement, up to 38.9% of the total per-ANB entitlement, and up to 40% of the special education allowable cost payment budgeted within the general fund budget.
(2) If the county retirement mill value per elementary ANB or the county retirement mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB, the county may receive guaranteed tax base aid based on the number of mills levied in the county in support of the retirement fund budgets of the respective elementary or high school districts in the county.
(3) For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB, the district may receive a state advance or reimbursement for school facilities in support of the debt service fund. (Terminates June 30, 2000--sec. 10, Ch. 211, L. 1999.)
20-9-367. (Effective July 1, 2000) Eligibility to receive guaranteed tax base aid or state advance or
reimbursement for school facilities. (1) If the district guaranteed tax base ratio of any elementary or high school district is
less than the corresponding statewide elementary or high school guaranteed tax base ratio, the district may receive
guaranteed tax base aid based on the number of mills levied in the district in support of up to 38.2% 35.3% of the basic
entitlement, up to 38.2% 35.3% of the total per-ANB entitlement, and up to 40% of the special education allowable cost
payment budgeted within the general fund budget.
(2) If the county retirement mill value per elementary ANB or the county retirement mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB, the county may receive guaranteed tax base aid based on the number of mills levied in the county in support of the retirement fund budgets of the respective elementary or high school districts in the county.
(3) For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB, the district may receive a state advance or reimbursement for school facilities in support of the debt service fund."
Section 5. Section 20-9-368, MCA, is amended to read:
"20-9-368. (Temporary) Amount of guaranteed tax base aid. (1) The amount of guaranteed tax base aid per ANB that a county may receive in support of the retirement fund budgets of the elementary school districts in the county is the difference between the county mill value per elementary ANB and the statewide mill value per elementary ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the elementary districts in the county.
(2) The amount of guaranteed tax base aid per ANB that a county may receive in support of the retirement fund budgets of the high school districts in the county is the difference between the county mill value per high school ANB and the statewide mill value per high school ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the high school districts in the county.
(3) The amount of guaranteed tax base aid that a district may receive in support of up to 38.9% of the basic entitlement, up to 38.9% of the total per-ANB entitlement budgeted within the general fund budget, and up to 40% of the special education payment is calculated in the following manner:
(a) multiply the sum of the district's direct state aid and 40% of the special education allowable cost payment by the corresponding statewide guaranteed tax base ratio;
(b) subtract the taxable valuation of the district from the product obtained in subsection (3)(a); and
(c) divide the remainder by 1,000 to determine the equivalent to the dollar amount of guaranteed tax base aid for each mill levied.
(4) Guaranteed tax base aid provided to any county or district under this section is earmarked to finance the fund or portion of the fund for which it is provided. If a county or district receives more guaranteed tax base aid than it is entitled to, the excess must be returned to the state as required by 20-9-344. (Terminates June 30, 2000--sec. 10, Ch. 211, L. 1999.)
20-9-368. (Effective July 1, 2000) Amount of guaranteed tax base aid. (1) The amount of guaranteed tax base aid per ANB that a county may receive in support of the retirement fund budgets of the elementary school districts in the county is the difference between the county mill value per elementary ANB and the statewide mill value per elementary ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the elementary districts in the county.
(2) The amount of guaranteed tax base aid per ANB that a county may receive in support of the retirement fund budgets of the high school districts in the county is the difference between the county mill value per high school ANB and the statewide mill value per high school ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the high school districts in the county.
(3) The amount of guaranteed tax base aid that a district may receive in support of up to 38.2% 35.3% of the basic
entitlement, up to 38.2% 35.3% of the total per-ANB entitlement budgeted within the general fund budget, and up to 40%
of the special education payment is calculated in the following manner:
(a) multiply the sum of the district's BASE budget amount less direct state aid by the corresponding statewide guaranteed tax base ratio;
(b) subtract the taxable valuation of the district from the product obtained in subsection (3)(a); and
(c) divide the remainder by 1,000 to determine the equivalent to the dollar amount of guaranteed tax base aid for each mill levied.
(4) Guaranteed tax base aid provided to any county or district under this section is earmarked to finance the fund or portion of the fund for which it is provided. If a county or district receives more guaranteed tax base aid than it is entitled to, the excess must be returned to the state as required by 20-9-344."
Section 6. Section 61-3-509, MCA, is amended to read:
"61-3-509. Disposition of taxes. (1) Except as provided in subsection (2) (3), the county treasurer shall, after deducting
the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on motorcycles, quadricycles, motor homes,
travel trailers, campers, trailers, pole trailers, semitrailers, buses, trucks having a manufacturer's rated capacity of more than
1 ton, and truck tractors collected under 61-3-504, 61-3-521, 61-3-527, 61-3-529, and 61-3-537, to a motor vehicle
suspense fund. At some time between March 1 and March 10 of each year and every 60 days after that date, the county
treasurer shall distribute the money in the motor vehicle suspense fund. Except for taxes collected under 61-3-504, the
county treasurer shall distribute the money in the fund in the relative proportions required by the levies for state, county,
school district, and municipal purposes in the same manner as personal property taxes are distributed.
(2) For Except as provided in subsection (3), for money in the fund collected under 61-3-504, the county treasurer shall
disregard the statewide mills levied for the university system and the mills levied for state equalization aid under 20-9-331,
20-9-333, and 20-9-360 in determining distribution proportions of the money and may not distribute money from 61-3-504
to the state for either levy those levies. Money collected under 61-3-504 that was previously distributed pursuant to levies
imposed by 15-10-107, 20-9-331, 20-9-333, and 20-9-360 is a local government reimbursement for the purposes of
15-10-420. If the distribution of money collected under 61-3-504 to a school district general fund results in a lower
revenue than the district received in fiscal year 1999 and the district has, for all years after fiscal year 1999, received less
revenue than in fiscal year 1999, then the district general fund is entitled to state reimbursement for the amount of the
difference between the fiscal year 1999 revenue and the prior school fiscal year revenue under 61-3-504. Prior to January
31, the office of public instruction shall distribute to each school district an amount equal to the state reimbursement for the
prior school year.
(2)(3) The county treasurer shall deduct as a district court fee 10% of the amount of the tax collected on light vehicles
under 61-3-504(1). The county treasurer shall credit the fee for district courts to a separate suspense account and shall
forward the amount in the account to the state treasurer at the time that the county treasurer distributes money from the
motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the state special
revenue fund to be used for purposes of state funding of district court expenses as provided in 3-5-901."
Section 7. Section 167, Chapter 584, Laws of 1999, is amended to read:
"Section 167. Reimbursement to counties, cities, towns, and consolidated city-county governments for losses in revenue. (1) (a) The department of revenue shall determine the amount of tax and other revenue lost by each local government unit as a result of the enactment of House Bill No. 128, House Bill No. 174, House Bill No. 420, House Bill No. 658, Senate Bill No. 200, and Senate Bill No. 530 for fiscal year 2000 and for fiscal year 2001. The determination must be made by August 15, 1999, for fiscal year 2000, and by March 15, 2000, for fiscal year 2001. The department shall use fiscal year 1998 as its base year for each determination.
(b) As used in this section, "local government unit" means a county, city, or town capable of levying mills, consolidated city-county government, school district, miscellaneous district, or other local district that levies mills. The term does not include the state.
(c) The department shall determine the amount of tax and other revenue due each local government unit for fiscal year 1998 from the following sources:
(i) property taxes levied by each local government unit within each county or consolidated city-county government for
fiscal year 1998, but excluding any mills levied by the state pursuant to [section 1 of Senate Bill No. 79] 15-10-107,
20-9-331, 20-9-333, 20-9-360, 20-25-439, and 53-2-813; and
(ii) oil and gas production taxes levied and distributed as provided for in Title 15, chapter 36.
(2) The department shall calculate for each local government unit for fiscal year 1998 the amount of tax and other revenue that would have been due each local government unit from the sources listed in subsection (1) if House Bill No. 128, House Bill No. 174, House Bill No. 420, House Bill No. 658, Senate Bill No. 200, and Senate Bill No. 530 had been in effect for fiscal year 1998.
(3) In making the calculation provided for in subsection (2), the department shall take into account any benefit to a local government unit that levied mills against electrical generation property in fiscal year 1998 from any increase in the assessed value of electrical generation property stemming from the sale of electrical generation assets subsequent to tax year 1997.
(4) (a) Each county, city, town, and consolidated city-county government that in aggregate lost tax revenue in a
particular year, based on the difference between the calculation in subsections (1)(c) and (2), must receive the same
percentage of the appropriation for local government reimbursements as the appropriation bears to the total amount of loss
for all local government units in this state. Payments must be made in two similar installments for each fiscal year on or
about December 15 and June 15. Each county, city, town, and consolidated city-county government is authorized to
distribute the revenue received among its funds and districts according to current the prior year year's mill levies. Except as
provided in subsections subsection (4)(b), each tax increment financing district must receive the benefit of the
reimbursement based on the loss to the incremental taxable value of the district.
(b) A tax increment financing district that consists of an industrial district created under 7-15-4299 may not receive any reimbursement under subsection (4)(a).
(5) The amount of loss calculated in subsection (2), converted to taxable value by multiplying by the applicable mill
levy, shall must be added to the taxable value of taxing units to determine their bonding limits.
(6) (a) A charter form of local government that has a charter provision that prohibits an increase in the number of mills
that may be levied to compensate for the loss of taxable value, as authorized in [section 1] 15-10-420, is entitled to further
reimbursement in addition to that computed under subsections (1) through (5) of this section.
(b) The amount of reimbursement is equal to the difference between the amount of the reimbursement calculated under subsections (1) through (5) and the amount of property tax imposed in tax year 1998. If the amount appropriated for the reimbursement under this subsection (6) is insufficient to fully fund all the jurisdictions entitled to reimbursement, the payments must be prorated to the jurisdictions. The payments must be made with the payments made under subsections (1) through (5)."
NEW SECTION. SECTION 8. COORDINATION INSTRUCTION. IF THIS ACT IS PASSED AND APPROVED BY THE ELECTORATE AND IF CHAPTER 515, LAWS OF 1999, IS APPROVED BY THE ELECTORATE, THEN:
(1) SECTION 15-10-420 MUST READ AS FOLLOWS:
"15-10-420. Procedure for calculating levy. (1) 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.
(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) For purposes of this section, newly taxable property includes:
(a) annexation of real property and improvements into a taxing unit;
(b) construction, expansion, or remodeling of improvements;
(c) transfer of property into a taxing unit;
(d) subdivision of real property;
(e) reclassification of property;
(f) transfer of property from tax-exempt to taxable status; and
(g) revaluations caused by expansion, addition, replacement, or remodeling of improvements.
(4) 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) For purposes of subsection (1), taxes imposed:
(a) include registration fees imposed on light vehicles under [section 2, Chapter 515, Laws of 1999] 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) 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. The amount of motor vehicle disposition under 61-3-509(2), as that section read on December 31, 2000, is a statutory reimbursement. It 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) The department shall calculate 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.
(8) 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."
(2) 61-3-509 MUST READ AS FOLLOWS:
"61-3-509. Disposition of taxes. (1) All registration fees imposed by [section 2, Chapter 515, Laws of 1999] from light vehicles, all registration fees imposed by 61-3-522 from motor homes, all fees in lieu of tax imposed by 61-3-527 from motorcycles and quadricycles, and all fees imposed by 61-3-529 from buses, motor vehicles having a manufacturer's rated capacity of more than 1 ton, and truck tractors, for which a license is sought and an original application for title that includes a manufacturer's statement of origin is made, must be remitted to the state treasurer every 30 days. The state treasurer shall credit the payments to the highway restricted state special revenue account.
(1)(2) Except as provided in subsection (2) subsections (1) and (3), the county treasurer shall, after deducting the district
court fee, credit all taxes on motor vehicles, and registration fees in lieu of tax on light vehicles, and fees in lieu of tax on
motorcycles, quadricycles, motor homes, travel trailers, campers, trailers, pole trailers, semitrailers, buses, trucks having a
manufacturer's rated capacity of more than 1 ton, and truck tractors collected under [section 2, Chapter 515, Laws of 1999],
61-3-504, 61-3-521, 61-3-527, 61-3-529, and 61-3-537, to a motor vehicle suspense fund. At some time between March 1
and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor
vehicle suspense fund. Except for taxes registration fees collected under 61-3-504 [section 2, Chapter 515, Laws of 1999],
the county treasurer shall distribute the money in the fund in the relative proportions required by the levies for state, county,
school district, and municipal purposes in the same manner as personal property taxes are distributed. For money in the
fund collected under 61-3-504 [section 2, Chapter 515, Laws of 1999] and 61-3-527, the county treasurer shall disregard
the statewide mills levied for the university system, county elementary and high school equalization under 20-9-331 and
20-9-333, and the mills levied for state equalization aid under 20-9-360, and the mills levied for state assumption of public
assistance under 53-2-813 in determining distribution proportions of the money and may not distribute money from
61-3-504 collected under [section 2, Chapter 515, Laws of 1999] and 61-3-527 to the state for either levy those levies. If
the distribution of money collected under 61-3-504 [section 2, Chapter 515, Laws of 1999] and 61-3-527 to a school district
general fund results in a lower revenue than the district received in fiscal year 1999 and the district has, for all years after
fiscal year 1999, received less revenue than in fiscal year 1999, then the district general fund is entitled to state
reimbursement for the amount of the difference between the fiscal year 1999 revenue and the prior school fiscal year
revenue under 61-3-504, as that section read on December 31, 2000, and the current year distribution of collections under
[section 2, Chapter 515, Laws of 1999] and 61-3-527. Prior to January 31, the office of public instruction shall distribute to
each school district an amount equal to the state reimbursement for the prior school year.
(2)(3) The county treasurer shall deduct as a district court fee 10% of the amount of the tax registration fee collected on
light vehicles under 61-3-504(1) [section 2, Chapter 515, Laws of 1999]. The county treasurer shall credit the fee for
district courts to a separate suspense account and shall forward the amount in the account to the state treasurer at the time
that the county treasurer distributes money from the motor vehicle suspense fund. The state treasurer shall credit amounts
received under this subsection to the state special revenue fund to be used for purposes of state funding of district court
expenses as provided in 3-5-901."
(3) 61-3-537 MUST READ AS FOLLOWS:
"61-3-537. (Temporary) Local option vehicle tax or flat fee. (1) A county may impose a local vehicle tax on vehicles
subject to a tax the registration fee imposed under 61-3-504 [section 2, Chapter 515, Laws of 1999] at a rate of up to 0.7%
of the value determined under 61-3-503 or a local flat fee, in addition to the tax fee imposed under 61-3-504 [section 2,
Chapter 515, Laws of 1999].
(2) A local vehicle tax or flat fee is payable at the same time and in the same manner as the tax fee imposed under
61-3-504 [section 2, Chapter 515, Laws of 1999. The first priority of the local vehicle tax or flat fee is for district court
funding, and the tax or fee is distributed as follows:
(a) 50% to the county; and
(b) the remaining 50% to the county and the incorporated cities and towns within the county, apportioned on the basis of population. The distribution to a city or town is determined by multiplying the amount of money available by the ratio of the population of the city or town to the total county population. The distribution to the county is determined by multiplying the amount of money available by the ratio of the population of unincorporated areas within the county to the total county population.
(3) The governing body of a county may impose, revise, or revoke a local vehicle tax or flat fee if the imposition, revision, or revocation of the tax or fee is approved by the electorate of the county. The imposition, revision, or revocation of the tax or fee is effective on January 1 following its approval by the electorate. The county governing body by resolution may provide for the distribution of the local vehicle tax or flat fee. (Terminates June 30, 2005--sec. 2, 3, Ch. 217, L. 1995.)
61-3-537. (Effective July 1, 2005) Local option vehicle tax or flat fee. (1) A county may impose a local vehicle tax
on vehicles subject to a tax the registration fee imposed under 61-3-504 [section 2, Chapter 515, Laws of 1999] at a rate of
up to 0.7% of the value determined under 61-3-503 or a local flat fee, in addition to the tax fee imposed under 61-3-504
[section 2, Chapter 515, Laws of 1999].
(2) A local vehicle tax or flat fee is payable at the same time and in the same manner as the tax fee imposed under
61-3-504 [section 2, Chapter 515, Laws of 1999] and is distributed in the same manner, based on the registration address of
the owner of the motor vehicle.
(3) The governing body of a county may impose, revise, or revoke a local vehicle tax or flat fee if the imposition, revision, or revocation of the tax or fee is approved by the electorate of the county. The imposition, revision, or revocation of the tax or fee is effective on January 1 following its approval by the electorate."
(4) SECTION 38, CHAPTER 515, LAWS OF 1999, IS VOID.
NEW SECTION. Section 9. Effective date DATES -- applicability. If approved by the electorate,:
(1) EXCEPT AS PROVIDED IN SUBSECTION (2), this act is effective July 1, 2001, and applies to school fiscal
years beginning on or after July 1, 2001.; AND
(2) [SECTION 8(2), (3), AND (4)] ARE EFFECTIVE JANUARY 1, 2001.
NEW SECTION. Section 10. Contingent voidness. If LC 9 is passed and approved, then this act is void and may not be submitted to the electorate.
NEW SECTION. Section 11. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the general election to be held in November 2000 by printing on the ballot the full title of this act and the following:
[] FOR reducing property taxes by increasing direct state aid to schools and providing increased reimbursements to local governments.
[] AGAINST reducing property taxes by increasing direct state aid to schools and providing increased reimbursements to local governments.
- END -
Latest Version of HB 3 (HB0003.02)
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