HOUSE BILL NO. 561
INTRODUCED BY T. SCHMIDT
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING THE TAXATION OF PERSONAL PROPERTY; ELIMINATING THE PHASEOUT OF THE CLASS EIGHT BUSINESS EQUIPMENT PROPERTY TAX; PROVIDING A PHASED-IN EXEMPTION, BASED ON MARKET VALUE, OF CLASS EIGHT PROPERTY HELD IN SINGLE OWNERSHIP WITHIN A COUNTY; ELIMINATING THE REPORTING REQUIREMENT FOR CERTAIN EXEMPT BUSINESS EQUIPMENT; AMENDING SECTIONS 7-7-107, 7-7-2101, 7-7-2203, 7-14-2524, 7-16-2327, 15-6-138, 15-6-201, 15-8-301, 15-32-405, AND 20-9-406, MCA, AND SECTIONS 27 AND 31, CHAPTER 285, LAWS OF 1999; AND PROVIDING EFFECTIVE DATES."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 7-7-107, MCA, is amended to read:
"7-7-107. Limitation on amount of bonds for city-county consolidated units. (1) Except as provided in 7-7-108, a city-county consolidated local government may not issue bonds for any purpose that, with all outstanding indebtedness, exceeds:
(a) (i) 39% of the taxable value of the property of the local government subject to taxation, as ascertained by the last assessment for state and county taxes; plus
(ii) an additional 50% of the taxable value of telecommunications property under 15-6-141 within the local government for tax year 1999, multiplied by 39%, and an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the local government for tax year 1999, multiplied by 39%; plus
(b) for bonds to be issued during fiscal year 2001, an additional 25% of the taxable value of class six property within the local government for tax year 1999, multiplied by 39%, and an additional 60% of the taxable value of class eight property within the local government for tax year 1999, multiplied by 39%;
(c) for bonds to be issued during fiscal year 2002, an additional 50% of the taxable value of class six property within the local government for tax year 1999, multiplied by 39%, and an additional 60% of the taxable value of class eight property within the local government for tax year 1999, multiplied by 39%; and
(d) for bonds to be issued during fiscal year 2003, an additional 75% of the taxable value of class six property within
the local government for tax year 1999, multiplied by 39%, and an additional 60% of the taxable value of class eight
property within the local government for tax year 1999, multiplied by 39%;
(e) 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 local government for tax year 1999, in each case of class six property,
multiplied by 39%, and an additional 77% of the taxable value of class eight property within the local government for tax
year 1999, multiplied by 39%;
(f) 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 local government for tax year 1999, in each case of former class
eight property, multiplied by 39%; and
(g) 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 class eight property within the local government for tax year 1999, in each case of former
class eight property, multiplied by 39%.
(2) The issuing of bonds for the purpose of funding or refunding outstanding warrants or bonds is not the incurring of a new or additional indebtedness but is merely the changing of the evidence of outstanding indebtedness."
Section 2. Section 7-7-2101, MCA, is amended to read:
"7-7-2101. Limitation on amount of county indebtedness. (1) A county may not become indebted in any manner or for any purpose in an amount, including existing indebtedness, in the aggregate exceeding 23% of the total of the taxable value of the property in the county subject to taxation plus:
(a) (i) the value provided by the department of revenue in 15-36-324(13), as ascertained by the last assessment for state and county taxes previous to the incurring of the indebtedness;
(ii) an additional 50% of the taxable value of telecommunications property under 15-6-141 within the county for tax year 1999, multiplied by 23%, and an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 23%;
(b) for indebtedness to be incurred during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the county for tax year 1995, multiplied by 23%;
(c) for indebtedness to be incurred during fiscal year 2001, an additional 25% of the taxable value of class six property within the county for tax year 1999, multiplied by 23%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 23%;
(d) for indebtedness to be incurred during fiscal year 2002, an additional 50% of the taxable value of class six property within the county for tax year 1999, multiplied by 23%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 23%; and
(e) for indebtedness to be incurred during fiscal year 2003, an additional 75% of the taxable value of class six property
within the county for tax year 1999, multiplied by 23%, and an additional 60% of the taxable value of class eight property
within the county for tax year 1999, multiplied by 23%;
(f) for indebtedness to be incurred 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 county for tax year 1999, in each case of class six property,
multiplied by 23%, and an additional 77% of the taxable value of class eight property within the county for tax year 1999,
multiplied by 23%;
(g) for indebtedness to be incurred 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 county for tax year 1999, in each case of former class
eight property, multiplied by 23%; and
(h) for indebtedness to be incurred 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 county for tax year 1999, in each case of
former class eight property, multiplied by 23%.
(2) A county may not incur indebtedness or liability for any single purpose to an amount exceeding $500,000 without the approval of a majority of the electors of the county voting at an election to be provided by law, except as provided in 7-7-2402, 7-21-3413, and 7-21-3414.
(3) This section does not apply to the acquisition of conservation easements as set forth in Title 76, chapter 6."
Section 3. Section 7-7-2203, MCA, is amended to read:
"7-7-2203. Limitation on amount of bonded indebtedness. (1) Except as provided in subsections (2) and (3), a county may not issue general obligation bonds for any purpose that, with all outstanding bonds and warrants except emergency bonds, will exceed 11.25% of the total of the taxable value of the property in the county plus:
(a) (i) the value provided by the department of revenue under 15-36-324(13), to be ascertained by the last assessment for state and county taxes prior to the proposed issuance of bonds;
(ii) for general obligation bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the county for tax year 1995, multiplied by 11.25%; and
(iii) an additional 50% of the taxable value of telecommunications property under 15-6-141 within the county for tax year 1999, multiplied by 11.25%, and an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 11.25%;
(b) for general obligation bonds to be issued during fiscal year 2001, an additional 25% of the taxable value of class six property within the county for tax year 1999, multiplied by 11.25%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 11.25%;
(c) for general obligation bonds to be issued during fiscal year 2002, an additional 50% of the taxable value of class six property within the county for tax year 1999, multiplied by 11.25%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 11.25%; and
(d) for general obligation bonds to be issued during fiscal year 2003, an additional 75% of the taxable value of class six
property within the county for tax year 1999, multiplied by 11.25%, and an additional 60% of the taxable value of class
eight property within the county for tax year 1999, multiplied by 11.25%;
(e) for general obligation 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 county for tax year 1999, in each case of class six
property, multiplied by 11.25%, and an additional 77% of the taxable value of class eight property within the county for tax
year 1999, multiplied by 11.25%;
(f) for general obligation 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 county for tax year 1999, in each case of
former class eight property, multiplied by 11.25%; and
(g) for general obligation 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 county for tax year 1999, in each
case of former class eight property, multiplied by 11.25%.
(2) In addition to the bonds allowed by subsection (1), a county may issue bonds for the construction or improvement of a detention center that will not exceed 12.5% of the taxable value of the property in the county subject to taxation, plus the adjustments permitted by subsection (1).
(3) The limitation in subsection (1) does not apply to refunding bonds issued for the purpose of paying or retiring county bonds lawfully issued prior to January 1, 1932, or to bonds issued for the repayment of tax protests lost by the county."
Section 4. Section 7-14-2524, MCA, is amended to read:
"7-14-2524. Limitation on amount of bonds issued -- excess void. (1) Except as otherwise provided in 7-7-2203, 7-7-2204, and this section, a county may not issue bonds that, with all outstanding bonds and warrants except emergency bonds, will exceed 11.25% of the total of the taxable value of the property in the county plus:
(a) (i) the value provided by the department of revenue under 15-36-324(13). The taxable property and the amount of taxes levied on new production, production from horizontally completed wells, and incremental production must be ascertained by the last assessment for state and county taxes prior to the issuance of the bonds.
(ii) an additional 50% of the taxable value of telecommunications property under 15-6-141 within the county for tax year 1999, multiplied by 11.25%, and an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 11.25%;
(b) for fiscal year 2001, an additional 25% of the taxable value of class six property within the county for tax year 1999, multiplied by 11.25%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 11.25%;
(c) for fiscal year 2002, an additional 50% of the taxable value of class six property within the county for tax year 1999, multiplied by 11.25%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 11.25%; and
(d) for fiscal year 2003, an additional 75% of the taxable value of class six property within the county for tax year 1999,
multiplied by 11.25%, and an additional 60% of the taxable value of class eight property within the county for tax year
1999, multiplied by 11.25%;
(e) for 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 county for tax year 1999, in each case of class six property, multiplied by 11.25%, and an additional
77% of the taxable value of class eight property within the county for tax year 1999, multiplied by 11.25%;
(f) for 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 county for tax year 1999, in each case of former class eight property, multiplied by 11.25%;
and
(g) for 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 county for tax year 1999, in each case of former class eight property, multiplied by
11.25%.
(2) A county may issue bonds that, with all outstanding bonds and warrants, exceeds 11.25% but does not exceed 22.5% of the total of the taxable value of the property, as adjusted in subsection (1), plus an additional 50% of the taxable value of telecommunications property under 15-6-141 within the county for tax year 1999, multiplied by the amount that exceeds 11.25% but does not exceed 22.5% and an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by the amount that exceeds 11.25% but does not exceed 22.5%, when necessary for the purpose of replacing, rebuilding, or repairing county buildings, bridges, or highways that have been destroyed or damaged by an act of God or by a disaster, catastrophe, or accident.
(3) The value of the bonds issued and all other outstanding indebtedness of the county may not exceed 22.5% of the total of the taxable value of the property within the county, as adjusted in this section."
Section 5. Section 7-16-2327, MCA, is amended to read:
"7-16-2327. Indebtedness for park purposes. (1) Subject to the provisions of subsection (2), a county park board, in addition to powers and duties given under law, may contract an indebtedness in behalf of a county, upon the credit of the county, in order to carry out its powers and duties.
(2) (a) The total amount of indebtedness authorized to be contracted in any form, including the then-existing indebtedness, may not at any time exceed 13% of the total of the taxable value of the taxable property in the county, as ascertained by the last assessment for state and county taxes previous to the incurring of the indebtedness, plus:
(i) the value provided by the department of revenue under 15-36-324(13);
(ii) an additional 50% of the taxable value of telecommunications property under 15-6-141 within the city or town for tax year 1999, multiplied by 13%, and an additional 50% of the taxable value attributable to electrical generation property under 15-6-141 within the county for tax year 1999, multiplied by 13%;
(iii) for fiscal year 2001, an additional 25% of the taxable value of class six property within the county for tax year 1999, multiplied by 13%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 13%;
(iv) for fiscal year 2002, an additional 50% of the taxable value of class six property within the county for tax year 1999, multiplied by 13%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999, multiplied by 13%; and
(v) for fiscal year 2003, an additional 75% of the taxable value of class six property within the county for tax year 1999,
multiplied by 13%, and an additional 60% of the taxable value of class eight property within the county for tax year 1999,
multiplied by 13%;
(vi) for 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 county for tax year 1999, in each case of class six property, multiplied by 13%, and an additional
77% of the taxable value of class eight property within the county for tax year 1999, multiplied by 13%;
(vii) for 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 county for tax year 1999, in each case of former class eight property, multiplied by 13%; and
(viii) for 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 county for tax year 1999, in each case of former class eight property,
multiplied by 13%.
(b) Money may not be borrowed on bonds issued for the purchase of lands and improving the land for any purpose until the proposition has been submitted to the vote of those qualified under the provisions of the state constitution to vote at the election in the affected county and a majority vote is cast in favor of the bonds."
Section 6. Section 15-6-138, MCA, is amended to read:
"15-6-138. (Temporary) Class eight property -- description -- taxable percentage -- exemption. (1) Class eight
property includes:
(a) all agricultural implements, machinery, and equipment that are not exempt under 15-6-201(1)(bb);
(b) all mining machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those
included in class five;
(c) all oil and gas production machinery, fixtures, equipment, including pumping units, oil field storage tanks, water
storage tanks, water disposal injection pumps, gas compressor and dehydrator units, communication towers, gas metering
shacks, treaters, gas separators, water flood units, gas boosters, and similar equipment that is skidable, portable, or
movable, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;
(d) all manufacturing machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r) or (1)(bb), and
supplies except those included in class five;
(e) all goods and equipment that are intended for rent or lease, except goods and equipment that are specifically included and taxed in another class;
(f) special mobile equipment as defined in 61-1-104;
(g) furniture, fixtures, and equipment, except that specifically included in another class, used in commercial establishments as defined in this section;
(h) x-ray and medical and dental equipment;
(i) citizens' band radios and mobile telephones;
(j) radio and television broadcasting and transmitting equipment;
(k) cable television systems;
(l) coal and ore haulers;
(m) theater projectors and sound equipment; and
(n) all other property that is not included in any other class in this part, except that property that is subject to a fee in lieu of a property tax.
(2) As used in this section, "coal and ore haulers" means nonhighway vehicles that exceed 18,000 pounds per axle and that are primarily designed and used to transport coal, ore, or other earthen material in a mining or quarrying environment.
(3) "Commercial establishment" includes any hotel; motel; office; petroleum marketing station; or service, wholesale, retail, or food-handling business.
(4) Class Except as provided in subsection (5), class eight property is taxed at:
(a) 6% of its market value for tax years beginning after December 31, 1997; and
(b) 3% of its market value for tax years beginning after December 31, 1999.
(5) (a) If, in any year beginning with tax year 2004, the percentage growth in inflation-adjusted Montana wage and
salary income, in the last full year for which data is available, is at least 2.85% from the prior year, then the tax rate for
class eight property will be reduced by 1% each year until the tax rate reaches zero.
(b) The department shall calculate the percentage growth in subsection (5)(a) by using the formula (W/CPI) - 1, where:
(i) W is the Montana wage and salary income for the most current available year divided by the Montana wage and
salary income for the year prior to the most current available year; and
(ii) CPI is the consumer price index for the most current available year used in subsection (5)(b)(i) divided by the
consumer price index for the year prior to the most current available year as used in subsection (5)(b)(i).
(c) For purposes of determining the percentage growth in subsection (5)(a), the department shall use the wage and salary
data series referred to as the bureau of economic analysis of the United States department of commerce Montana wage and
salary disbursements. Inflation must be measured by the consumer price index, U.S. city average, all urban consumers
(CPI-U), using the 1982-84 base of 100, as published by the bureau of labor statistics of the United States department of
labor.
(6)(5) (a) Beginning with tax year 2000, the class eight property of a person or business entity that owns an aggregate of
$5,000 or less in market value of class eight property is exempt from taxation. For tax year 2002, the first $15,000 or less of
market value of class eight property held in single ownership within a county is exempt from property tax.
(b) For tax year 2003, the first $25,000 or less of market value of class eight property held in single ownership within a county is exempt from property tax.
(c) For tax years beginning after 2003, the first $50,000 or less of market value of class eight property held in single
ownership within a county is exempt from property tax. (Repealed on occurrence of contingency--secs. 27(2), 31(4), Ch.
285, L. 1999.)"
Section 7. Section 15-6-201, MCA, is amended to read:
"15-6-201. (Temporary) Exempt categories. (1) The following categories of property are exempt from taxation:
(a) except as provided in 15-24-1203, the property of:
(i) the United States, except:
(A) if congress passes legislation that allows the state to tax property owned by the federal government or an agency created by congress; or
(B) as provided in 15-24-1103;
(ii) the state, counties, cities, towns, and school districts;
(iii) irrigation districts organized under the laws of Montana and not operating for profit;
(iv) municipal corporations;
(v) public libraries; and
(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;
(b) buildings, with land that they occupy and furnishings in the buildings, that are owned by a church and used for actual religious worship or for residences of the clergy, together with adjacent land reasonably necessary for convenient use of the buildings;
(c) property used exclusively for agricultural and horticultural societies, for educational purposes, and for nonprofit health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3, is not exempt.
(d) property that is:
(i) owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;
(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement fund has been established as provided for in Title 35, chapter 20, part 3; and
(iii) not maintained and operated for private or corporate profit;
(e) subject to subsection (2), property that is owned or property that is leased from a federal, state, or local governmental entity by institutions of purely public charity if the property is directly used for purely public charitable purposes;
(f) evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;
(g) public museums, art galleries, zoos, and observatories that are not used or held for private or corporate profit;
(h) all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or equipping the family residence;
(i) truck canopy covers or toppers and campers;
(j) a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;
(k) motor homes;
(l) all watercraft;
(m) motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural land;
(n) the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil, gas, coal, or minerals;
(o) (i) property that is owned and used by a corporation or association organized and operated exclusively for the care of persons with developmental disabilities, persons with mental illness, or persons with physical or mental impairments that constitute or result in substantial impediments to employment and that is not operated for gain or profit; and
(ii) property that is owned and used by an organization owning and operating facilities that are for the care of the retired, aged, or chronically ill and that are not operated for gain or profit;
(p) all farm buildings with a market value of less than $500 and all agricultural implements and machinery with a market value of less than $100;
(q) property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice for or competition in international sports and athletic events and that is not held or used for private or corporate gain or profit. For purposes of this subsection (1)(q), "nonprofit corporation" means an organization that is exempt from taxation under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit Corporation Act.
(r) (i) the first $15,000 or less of market value of tools owned by the taxpayer that are customarily hand-held and that
are used to:
(A) construct, repair, and maintain improvements to real property; or
(B) repair and maintain machinery, equipment, appliances, or other personal property taxed under 15-6-138, exclusive
of property exempt from taxation under subsection (1)(bb) of this section, and held in single ownership within a county;
(ii) space vehicles and all machinery, fixtures, equipment, and tools used in the design, manufacture, launch, repair, and maintenance of space vehicles that are owned by businesses engaged in manufacturing and launching space vehicles in the state or that are owned by a contractor or subcontractor of that business and that are directly used for space vehicle design, manufacture, launch, repair, and maintenance;
(s) harness, saddlery, and other tack equipment;
(t) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(u) timber as defined in 15-44-102;
(v) all trailers as defined in 61-1-111, semitrailers as defined in 61-1-112, pole trailers as defined in 61-1-114, and travel trailers as defined in 61-1-131;
(w) all vehicles registered under 61-3-456;
(x) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses, trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and
(ii) personal property that is attached to a bus, truck, or truck tractor that is exempt under subsection (1)(x)(i);
(y) motorcycles and quadricycles;
(z) the following percentage of the market value of residential property as described in 15-6-134(1)(e) and (1)(f):
(i) 16% for tax year 1999;
(ii) 23% for tax year 2000;
(iii)(i) 27.5% for tax year 2001; and
(iv)(ii) 31% for tax year 2002 and succeeding tax years;
(aa) the following percentage of the market value of commercial property as described in 15-6-134(1)(g):
(i) 6.5% for tax year 1999;
(ii) 9% for tax year 2000;
(iii)(i) 11% for tax year 2001; and
(iv)(ii) 13% for tax year 2002 and succeeding tax years;
(bb) personal property used by an industrial dairy or an industrial milk processor and dairy livestock used by an industrial dairy; and
(cc) light vehicles as defined in 61-1-139.
(2) (a) For the purposes of subsection (1)(e):
(i) the term "institutions of purely public charity" includes any organization that meets the following requirements:
(A) The organization offers its charitable goods or services to persons without regard to race, religion, creed, or gender and qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.
(B) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by other similar types of fundraising activities.
(ii) agricultural property owned by a purely public charity is not exempt if the agricultural property is used by the charity to produce unrelated business taxable income as that term is defined in section 512 of the Internal Revenue Code, 26 U.S.C. 512. A public charity claiming an exemption for agricultural property shall file annually with the department a copy of its federal tax return reporting any unrelated business taxable income received by the charity during the tax year, together with a statement indicating whether the exempt property was used to generate any unrelated business taxable income.
(b) For the purposes of subsection (1)(g), the term "public museums, art galleries, zoos, and observatories" means governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property reasonably necessary for use in connection with the public display or observatory use. Unless the property is leased for a profit to a governmental entity or nonprofit organization by an individual or for-profit organization, real and personal property owned by other persons is exempt if it is:
(i) actually used by the governmental entity or nonprofit organization as a part of its public display;
(ii) held for future display; or
(iii) used to house or store a public display.
(3) For the purposes of subsection (1)(bb):
(a) "industrial dairy" means a large-scale dairy operation with 1,000 or more milking cows and includes the dairy livestock and integral machinery and equipment that the dairy uses to produce milk and milk products solely for export from the state, either directly by the dairy or after the milk or milk product has been further processed by an industrial milk processor. After export, any unprocessed milk must be further processed into other dairy products.
(b) "industrial milk processor" means a facility and integral machinery used solely to process milk into milk products for export from the state.
(4) The following portions of the appraised value of a capital investment in a recognized nonfossil form of energy generation or low emission wood or biomass combustion devices, as defined in 15-32-102, are exempt from taxation for a period of 10 years following installation of the property:
(a) $20,000 in the case of a single-family residential dwelling;
(b) $100,000 in the case of a multifamily residential dwelling or a nonresidential structure.
15-6-201. (Effective January 1, 2003) Exempt categories. (1) The following categories of property are exempt from taxation:
(a) except as provided in 15-24-1203, the property of:
(i) the United States, except:
(A) if congress passes legislation that allows the state to tax property owned by the federal government or an agency created by congress; or
(B) as provided in 15-24-1103;
(ii) the state, counties, cities, towns, and school districts;
(iii) irrigation districts organized under the laws of Montana and not operating for profit;
(iv) municipal corporations;
(v) public libraries; and
(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;
(b) buildings, with land that they occupy and furnishings in the buildings, that are owned by a church and used for actual religious worship or for residences of the clergy, together with adjacent land reasonably necessary for convenient use of the buildings;
(c) property used exclusively for agricultural and horticultural societies, for educational purposes, and for nonprofit health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3, is not exempt.
(d) property that is:
(i) owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;
(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement fund has been established as provided for in Title 35, chapter 20, part 3; and
(iii) not maintained and operated for private or corporate profit;
(e) subject to subsection (2), property that is owned or property that is leased from a federal, state, or local governmental entity by institutions of purely public charity if the property is directly used for purely public charitable purposes;
(f) evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;
(g) public museums, art galleries, zoos, and observatories that are not used or held for private or corporate profit;
(h) all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or equipping the family residence;
(i) truck canopy covers or toppers and campers;
(j) a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;
(k) motor homes;
(l) all watercraft;
(m) motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural land;
(n) the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil, gas, coal, or minerals;
(o) (i) property that is owned and used by a corporation or association organized and operated exclusively for the care of persons with developmental disabilities, persons with mental illness, or persons with physical or mental impairments that constitute or result in substantial impediments to employment and that is not operated for gain or profit; and
(ii) property that is owned and used by an organization owning and operating facilities that are for the care of the retired, aged, or chronically ill and that are not operated for gain or profit;
(p) all farm buildings with a market value of less than $500 and all agricultural implements and machinery with a market value of less than $100;
(q) property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice for or competition in international sports and athletic events and that is not held or used for private or corporate gain or profit. For purposes of this subsection (1)(q), "nonprofit corporation" means an organization that is exempt from taxation under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit Corporation Act.
(r) (i) for tax year 2003, the first $15,000 $25,000 or less of market value of tools owned by the taxpayer that are
customarily hand-held and that are used to:
(A) construct, repair, and maintain improvements to real property; or
(B) repair and maintain machinery, equipment, appliances, or other personal property taxed under 15-6-138, exclusive
of property exempt from taxation under subsection (1)(bb) of this section, and held in single ownership within a county;
(ii) for tax years beginning after December 31, 2003, the first $50,000 or less of market value of personal property taxed under 15-6-138, exclusive of property exempt from taxation under subsection (1)(bb) of this section, and held in single ownership within a county;
(ii)(iii) space vehicles and all machinery, fixtures, equipment, and tools used in the design, manufacture, launch, repair,
and maintenance of space vehicles that are owned by businesses engaged in manufacturing and launching space vehicles in
the state or that are owned by a contractor or subcontractor of that business and that are directly used for space vehicle
design, manufacture, launch, repair, and maintenance;
(s) harness, saddlery, and other tack equipment;
(t) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(u) timber as defined in 15-44-102;
(v) all trailers as defined in 61-1-111, semitrailers as defined in 61-1-112, pole trailers as defined in 61-1-114, and travel trailers as defined in 61-1-131;
(w) all vehicles registered under 61-3-456;
(x) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses, trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and
(ii) personal property that is attached to a bus, truck, or truck tractor that is exempt under subsection (1)(x)(i);
(y) motorcycles and quadricycles;
(z) the following percentage 31% of the market value of residential property as described in 15-6-134(1)(e) and (1)(f):;
(i) 16% for tax year 1999;
(ii) 23% for tax year 2000;
(iii) 27.5% for tax year 2001; and
(iv) 31% for tax year 2002 and succeeding tax years;
(aa) the following percentage 13% of the market value of commercial property as described in 15-6-134(1)(g):;
(i) 6.5% for tax year 1999;
(ii) 9% for tax year 2000;
(iii) 11% for tax year 2001; and
(iv) 13% for tax year 2002 and succeeding tax years;
(bb) personal property used by an industrial dairy or an industrial milk processor and dairy livestock used by an industrial dairy;
(cc) items of personal property intended for rent or lease in the ordinary course of business if each item of personal property satisfies all of the following:
(i) the acquired cost of the personal property is less than $15,000;
(ii) the personal property is owned by a business whose primary business income is from rental or lease of personal property to individuals and no one customer of the business accounts for more than 10% of the total rentals or leases during a calendar year; and
(iii) the lease of the personal property is generally on an hourly, daily, or weekly basis; and
(dd) light vehicles as defined in 61-1-139.
(2) (a) For the purposes of subsection (1)(e):
(i) the term "institutions of purely public charity" includes any organization that meets the following requirements:
(A) The organization offers its charitable goods or services to persons without regard to race, religion, creed, or gender and qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.
(B) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by other similar types of fundraising activities.
(ii) agricultural property owned by a purely public charity is not exempt if the agricultural property is used by the charity to produce unrelated business taxable income as that term is defined in section 512 of the Internal Revenue Code, 26 U.S.C. 512. A public charity claiming an exemption for agricultural property shall file annually with the department a copy of its federal tax return reporting any unrelated business taxable income received by the charity during the tax year, together with a statement indicating whether the exempt property was used to generate any unrelated business taxable income.
(b) For the purposes of subsection (1)(g), the term "public museums, art galleries, zoos, and observatories" means governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property reasonably necessary for use in connection with the public display or observatory use. Unless the property is leased for a profit to a governmental entity or nonprofit organization by an individual or for-profit organization, real and personal property owned by other persons is exempt if it is:
(i) actually used by the governmental entity or nonprofit organization as a part of its public display;
(ii) held for future display; or
(iii) used to house or store a public display.
(3) For the purposes of subsection (1)(bb):
(a) "industrial dairy" means a large-scale dairy operation with 1,000 or more milking cows and includes the dairy livestock and integral machinery and equipment that the dairy uses to produce milk and milk products solely for export from the state, either directly by the dairy or after the milk or milk product has been further processed by an industrial milk processor. After export, any unprocessed milk must be further processed into other dairy products.
(b) "industrial milk processor" means a facility and integral machinery used solely to process milk into milk products for export from the state.
(4) The following portions of the appraised value of a capital investment in a recognized nonfossil form of energy generation or low emission wood or biomass combustion devices, as defined in 15-32-102, are exempt from taxation for a period of 10 years following installation of the property:
(a) $20,000 in the case of a single-family residential dwelling;
(b) $100,000 in the case of a multifamily residential dwelling or a nonresidential structure.
15-6-201. (Effective on occurrence of contingency) Exempt categories. (1) The following categories of property are
exempt from taxation:
(a) except as provided in 15-24-1203, the property of:
(i) the United States, except:
(A) if congress passes legislation that allows the state to tax property owned by the federal government or an agency
created by congress; or
(B) as provided in 15-24-1103;
(ii) the state, counties, cities, towns, and school districts;
(iii) irrigation districts organized under the laws of Montana and not operating for profit;
(iv) municipal corporations;
(v) public libraries; and
(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;
(b) buildings, with land that they occupy and furnishings in the buildings, that are owned by a church and used for
actual religious worship or for residences of the clergy, together with adjacent land reasonably necessary for convenient use
of the buildings;
(c) property used exclusively for agricultural and horticultural societies, for educational purposes, and for nonprofit
health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized
under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human
services and organized under Title 35, chapter 2 or 3, is not exempt.
(d) property that is:
(i) owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;
(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement
fund has been established as provided for in Title 35, chapter 20, part 3; and
(iii) not maintained and operated for private or corporate profit;
(e) subject to subsection (2), property that is owned or property that is leased from a federal, state, or local
governmental entity by institutions of purely public charity if the property is directly used for purely public charitable
purposes;
(f) evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;
(g) public museums, art galleries, zoos, and observatories that are not used or held for private or corporate profit;
(h) all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and
wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or
equipping the family residence;
(i) truck canopy covers or toppers and campers;
(j) a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;
(k) motor homes;
(l) all watercraft;
(m) motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit
corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural
land;
(n) the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold
interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil,
gas, coal, or minerals;
(o) (i) property that is owned and used by a corporation or association organized and operated exclusively for the care of
persons with developmental disabilities, persons with mental illness, or persons with physical or mental impairments that
constitute or result in substantial impediments to employment and that is not operated for gain or profit; and
(ii) property that is owned and used by an organization owning and operating facilities that are for the care of the retired,
aged, or chronically ill and that are not operated for gain or profit;
(p) all farm buildings with a market value of less than $500 and all agricultural implements and machinery with a
market value of less than $100;
(q) property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice
for or competition in international sports and athletic events and that is not held or used for private or corporate gain or
profit. For purposes of this subsection (1)(q), "nonprofit corporation" means an organization that is exempt from taxation
under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit
Corporation Act.
(r) (i) the first $15,000 or less of market value of tools owned by the taxpayer that are customarily hand-held and that
are used to:
(A) construct, repair, and maintain improvements to real property; or
(B) repair and maintain machinery, equipment, appliances, or other personal property;
(ii) space vehicles and all machinery, fixtures, equipment, and tools used in the design, manufacture, launch, repair, and
maintenance of space vehicles that are owned by businesses engaged in manufacturing and launching space vehicles in the
state or that are owned by a contractor or subcontractor of that business and that are directly used for space vehicle design,
manufacture, launch, repair, and maintenance;
(s) harness, saddlery, and other tack equipment;
(t) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(u) timber as defined in 15-44-102;
(v) all trailers as defined in 61-1-111, semitrailers as defined in 61-1-112, pole trailers as defined in 61-1-114, and
travel trailers as defined in 61-1-131;
(w) all vehicles registered under 61-3-456;
(x) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses,
trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and
(ii) personal property that is attached to a bus, truck, or truck tractor that is exempt under subsection (1)(x)(i);
(y) motorcycles and quadricycles;
(z) the following percentage of the market value of residential property as described in 15-6-134(1)(e) and (1)(f):
(i) 16% for tax year 1999;
(ii) 23% for tax year 2000;
(iii) 27.5% for tax year 2001; and
(iv) 31% for tax year 2002 and succeeding tax years;
(aa) the following percentage of the market value of commercial property as described in 15-6-134(1)(g):
(i) 6.5% for tax year 1999;
(ii) 9% for tax year 2000;
(iii) 11% for tax year 2001; and
(iv) 13% for tax year 2002 and succeeding tax years;
(bb) personal property used by an industrial dairy or an industrial milk processor and dairy livestock used by an
industrial dairy;
(cc) items of personal property intended for rent or lease in the ordinary course of business if each item of personal
property satisfies all of the following:
(i) the acquired cost of the personal property is less than $15,000;
(ii) the personal property is owned by a business whose primary business income is from rental or lease of personal
property to individuals and no one customer of the business accounts for more than 10% of the total rentals or leases during
a calendar year; and
(iii) the lease of the personal property is generally on an hourly, daily, or weekly basis;
(dd) all agricultural implements and equipment;
(ee) all mining machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those
included in class five;
(ff) all manufacturing machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies
except those included in class five;
(gg) all goods and equipment that are intended for rent or lease, except goods and equipment that are specifically
included and taxed in another class;
(hh) special mobile equipment as defined in 61-1-104;
(ii) furniture, fixtures, and equipment, except that specifically included in another class, used in commercial
establishments as defined in this section;
(jj) x-ray and medical and dental equipment;
(kk) citizens' band radios and mobile telephones;
(ll) radio and television broadcasting and transmitting equipment;
(mm) cable television systems;
(nn) coal and ore haulers;
(oo) theater projectors and sound equipment; and
(pp) light vehicles as defined in 61-1-139.
(2) (a) For the purposes of subsection (1)(e):
(i) the term "institutions of purely public charity" includes any organization that meets the following requirements:
(A) The organization offers its charitable goods or services to persons without regard to race, religion, creed, or gender
and qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.
(B) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may
solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by
other similar types of fundraising activities.
(ii) agricultural property owned by a purely public charity is not exempt if the agricultural property is used by the charity
to produce unrelated business taxable income as that term is defined in section 512 of the Internal Revenue Code, 26 U.S.C.
512. A public charity claiming an exemption for agricultural property shall file annually with the department a copy of its
federal tax return reporting any unrelated business taxable income received by the charity during the tax year, together with
a statement indicating whether the exempt property was used to generate any unrelated business taxable income.
(b) For the purposes of subsection (1)(g), the term "public museums, art galleries, zoos, and observatories" means
governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as
a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property reasonably
necessary for use in connection with the public display or observatory use. Unless the property is leased for a profit to a
governmental entity or nonprofit organization by an individual or for-profit organization, real and personal property owned
by other persons is exempt if it is:
(i) actually used by the governmental entity or nonprofit organization as a part of its public display;
(ii) held for future display; or
(iii) used to house or store a public display.
(3) For the purposes of subsection (1)(bb):
(a) "industrial dairy" means a large-scale dairy operation with 1,000 or more milking cows and includes the dairy
livestock and integral machinery and equipment that the dairy uses to produce milk and milk products solely for export
from the state, either directly by the dairy or after the milk or milk product has been further processed by an industrial milk
processor. After export, any unprocessed milk must be further processed into other dairy products.
(b) "industrial milk processor" means a facility and integral machinery used solely to process milk into milk products
for export from the state.
(4) The following portions of the appraised value of a capital investment in a recognized nonfossil form of energy
generation or low emission wood or biomass combustion devices, as defined in 15-32-102, are exempt from taxation for a
period of 10 years following installation of the property:
(a) $20,000 in the case of a single-family residential dwelling;
(b) $100,000 in the case of a multifamily residential dwelling or a nonresidential structure."
Section 8. Section 15-8-301, MCA, is amended to read:
"15-8-301. Statement -- what to contain. (1) The department may require from a person a statement under oath setting forth specifically all the real and personal property owned by, in possession of, or under the control of the person at midnight on January 1. The statement must be in writing, showing separately:
(a) all property belonging to, claimed by, or in the possession or under the control or management of the person;
(b) all property belonging to, claimed by, or in the possession or under the control or management of any firm of which the person is a member;
(c) all property belonging to, claimed by, or in the possession or under the control or management of any corporation of which the person is president, secretary, cashier, or managing agent;
(d) the county in which the property is situated or in which the property is liable to taxation and, if liable to taxation in the county in which the statement is made, also the city, town, school district, road district, or other revenue districts in which the property is situated;
(e) an exact description of all lands, improvements, and personal property;
(f) all depots, shops, stations, buildings, and other structures erected on the space covered by the right-of-way and all other property owned by any person owning or operating any railroad within the county.
(2) (a) The department shall notify the taxpayer in the statement for reporting personal property owned by a business or used in a business that the statement is for reporting business equipment and other business personal property described in Title 15, chapter 6, part 1.
(b) A taxpayer owning exempt, in single ownership, business equipment within a county that in the aggregate is equal to
or less than the market value of exempt property specified in 15-6-138 and 15-6-201(1)(r) for the appropriate tax year is not
subject to reporting requirements. A taxpayer owning, in single ownership, business equipment within a county the total
market value of which exceeds the market value of exempt property specified in 15-6-138 and 15-6-201(1)(r) for the
appropriate tax year is subject to limited reporting requirements on the exempt portion of property;. however, all However,
a new businesses business shall report their its class eight property so that the department can determine the market value of
the property. The department shall by rule develop reporting requirements for business equipment to limit the annual
reporting of exempt business equipment to the extent feasible.
(3) Whenever one member of a firm or one of the proper officers of a corporation has made a statement showing the property of the firm or corporation, another member of the firm or another officer is not required to include the property in that person's statement but the statement must show the name of the person or officer who made the statement in which the property is included.
(4) The fact that a statement is not required or that a person has not made a statement, under oath or otherwise, does not relieve the person's property from taxation."
Section 9. Section 15-32-405, MCA, is amended to read:
"15-32-405. Exclusion from other tax incentives. If a credit is claimed for an investment pursuant to this part, no
other state energy or investment tax credit, including but not limited to the tax credits allowed by 15-30-162 and 15-31-123
through 15-31-125, may be claimed for the investment. Property tax reduction allowed by 15-6-201(3)(4) may not be
applied to a facility for which a credit is claimed pursuant to this part."
Section 10. 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 ascertained by the last-completed 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%; and
(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 ascertained by the last-completed 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%; and
(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 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."
NEW SECTION. Section 11. Coordination instruction. (1) If House Bill No. 23 is passed and approved, then [sections 1 through 5 of this act] are void.
(2) If House Bill No. 24 is passed and approved, then [section 7 of this act] is void.
Section 12. Section 27, Chapter 285, Laws of 1999, is amended to read:
"Section 27. Repealer. (1) Sections 15-6-136, 15-24-901, 15-24-920, 15-24-926, 15-24-927, and 15-24-931, MCA, are
repealed.
(2) Section 15-6-138, MCA, is repealed."
Section 13. Section 31, Chapter 285, Laws of 1999, is amended to read:
"Section 31. Effective dates. (1) [Sections 1, 11, 12, 15, 22, 26, 28 through 30, and 32 and this section] are effective on passage and approval.
(2) [Sections 3 through 9 and 23] are effective July 1, 2000.
(3) [Sections 2, 10, 13, 14, 16 through 21, 24, 25, and 27(1)] are effective January 1, 2003.
(4) [Sections 13(1)(aa) through (1)(ll) and 27(2)] are effective if the tax rate in [section 12], amending 15-6-138,
reaches zero."
NEW SECTION. Section 14. Effective dates. (1) Except as provided in subsection (2), [this act] is effective October 1, 2001.
(2) [Section 9 and this section] are effective on passage and approval.
- END -
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