HOUSE BILL NO. 24
INTRODUCED BY R. ERICKSON
AN ACT REVISING THE DEBT LIMIT PROVISIONS FOR PUBLIC SCHOOLS; ELIMINATING ADJUSTMENTS TO TAXABLE VALUE OCCURRING AS A RESULT OF PRIOR CHANGES TO THE TAXATION OF CERTAIN CLASSES OF PROPERTY; AMENDING SECTION 20-9-406, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-9-406, MCA, is amended to read:
"20-9-406. Limitations on amount of bond issue. (1) (a) Except as provided in subsection (1)(d),
the maximum amount for which an elementary district or a high school district may become indebted by
the issuance of bonds, including all indebtedness represented by outstanding bonds of previous issues
and registered warrants, is 45% of the taxable value of the property subject to taxation, to be as
ascertained by the last-completed last assessment for state, county, and school taxes previous to the
incurring of the indebtedness, plus:
(i) (A) for bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the
taxable value of class eight property within the district for tax year 1995, multiplied by 45%; and
(B) an additional 50% of the taxable value of telecommunications property under 15-6-141 within
the district for tax year 1999, multiplied by 45%, and an additional 50% of the taxable value attributable
to electrical generation property under 15-6-141 within the district for tax year 1999, multiplied by 45%;
(ii) for bonds to be issued during fiscal year 2001, an additional 25% of the taxable value of class six
property within the district for tax year 1999, multiplied by 45%, and an additional 60% of the taxable
value of class eight property within the district for tax year 1999, multiplied by 45%;
(iii) for bonds to be issued during fiscal year 2002, an additional 50% of the taxable value of class
six property within the district for tax year 1999, multiplied by 45%, and an additional 60% of the
taxable value of class eight property within the district for tax year 1999, multiplied by 45%;
(iv) for bonds to be issued during fiscal year 2003, an additional 75% of the taxable value of class six
property within the district for tax year 1999, multiplied by 45%, and an additional 60% of the taxable
value of class eight property within the district for tax year 1999, multiplied by 45%;
(v) for bonds to be issued during fiscal years in which the tax rate for class eight property is 2%, an
additional 100% of the taxable value of class six property within the district for tax year 1999, in each
case of class six property, multiplied by 45%, and an additional 77% of the taxable value of class eight
property within the district for tax year 1999, multiplied by 45%;
(vi) for bonds to be issued during fiscal years in which the tax rate for class eight property is 1%, an
additional 94% of the taxable value of former class eight property within the district for tax year 1999,
in each case of former class eight property, multiplied by 45%; and
(vii) for bonds to be issued during the fiscal year and succeeding fiscal years in which 15-6-138 is
repealed, an additional 100% of the taxable value of former class eight property within the district for
tax year 1999, in each case of former class eight property, multiplied by 45%.
(b) Except as provided in subsection (1)(d), the maximum amount for which a K-12 school district,
as formed pursuant to 20-6-701, may become indebted by the issuance of bonds, including all
indebtedness represented by outstanding bonds of previous issues and registered warrants, is up to 90%
of the taxable value of the property subject to taxation, to be as ascertained by the last-completed last
assessment for state, county, and school taxes previous to the incurring of the indebtedness, plus:
(i) (A) for bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the
taxable value of class eight property within the district for tax year 1995, multiplied by 90%; and
(B) an additional 50% of the taxable value of telecommunications property under 15-6-141 within
the district for tax year 1999, multiplied by 90%, and an additional 50% of the taxable value attributable
to electrical generation property under 15-6-141 within the district for tax year 1999, multiplied by 90%;
(ii) for bonds to be issued during fiscal year 2001, an additional 25% of the taxable value of class six
property within the district for tax year 1999, multiplied by 90%, and an additional 60% of the taxable
value of class eight property within the district for tax year 1999, multiplied by 90%;
(iii) for bonds to be issued during fiscal year 2002, an additional 50% of the taxable value of class
six property within the district for tax year 1999, multiplied by 90%, and an additional 60% of the
taxable value of class eight property within the district for tax year 1999, multiplied by 90%;
(iv) for bonds to be issued during fiscal year 2003, an additional 75% of the taxable value of class six
property within the district for tax year 1999, multiplied by 90%, and an additional 60% of the taxable
value of class eight property within the district for tax year 1999, multiplied by 90%;
(v) for bonds to be issued during fiscal years in which the tax rate for class eight property is 2%, an
additional 100% of the taxable value of class six property within the district for tax year 1999, in each
case of class six property, multiplied by 90%, and an additional 77% of the taxable value of class eight
property within the district for tax year 1999, multiplied by 90%;
(vi) for bonds to be issued during fiscal years in which the tax rate for class eight property is 1%, an
additional 94% of the taxable value of former class eight property within the district for tax year 1999,
in each case of former class eight property, multiplied by 90%; and
(vii) for bonds to be issued during the fiscal year and succeeding fiscal years in which 15-6-138 is
repealed, an additional 100% of the taxable value of former class eight property within the district for
tax year 1999, in each case of former class eight property, multiplied by 90%.
(c) The total indebtedness of the high school district with an attached elementary district must be is
limited to the sum of 45% of the taxable value of the property for elementary school program purposes
and 45% of the taxable value of the property for high school program purposes, adjusted as provided in
this section.
(d) (i) The maximum amount for which an elementary district or a high school district with a district mill value per elementary ANB or per high school ANB that is less than the corresponding statewide mill value per elementary ANB or per high school ANB may become indebted by the issuance of bonds, including all indebtedness represented by outstanding bonds of previous issues and registered warrants, is 45% of the corresponding statewide mill value per ANB times 1,000 times the ANB of the district. For a K-12 district, the maximum amount for which the district may become indebted is 45% of the sum of the statewide mill value per elementary ANB times 1,000 times the elementary ANB of the district and the statewide mill value per high school ANB times 1,000 times the high school ANB of the district.
(ii) If mutually agreed upon by the affected districts, for the purpose of calculating its maximum bonded indebtedness under this subsection (1)(d), a district may include the ANB of the district plus the number of students residing within the district for which the district or county pays tuition for attendance at a school in an adjacent district. The receiving district may not use out-of-district ANB for the purpose of calculating its maximum indebtedness if the out-of-district ANB has been included in the ANB of the sending district pursuant to the mutual agreement.
(2) The maximum amounts determined in subsection (1), however, may not pertain to indebtedness imposed by special improvement district obligations or assessments against the school district or to bonds issued for the repayment of tax protests lost by the district. All bonds issued in excess of the amount are void, except as provided in this section.
(3) When the total indebtedness of a school district has reached the limitations prescribed in this section, the school district may pay all reasonable and necessary expenses of the school district on a cash basis in accordance with the financial administration provisions of this chapter.
(4) Whenever bonds are issued for the purpose of refunding bonds, any money to the credit of the debt service fund for the payment of the bonds to be refunded is applied toward the payment of the bonds and the refunding bond issue is decreased accordingly."
Section 2. Effective date. [This act] is effective July 1, 2001.
Section 3. Applicability. [This act] applies to the authorization and issuance of bonds occurring on or after July 1, 2001.
- END -
Latest Version of HB 24 (HB0024.ENR)
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