SENATE BILL NO. 232
INTRODUCED BY D. MAHLUM
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE MILL LEVY CALCULATION FOR PROPERTY TAXES ACTUALLY ASSESSED IN A PRIOR YEAR; LIMITING THE AMOUNT OF GROWTH IN PROPERTY TAXES TO THE ACTUAL VALUE OF NEW CONSTRUCTION OR THE AVERAGE RATE OF INFLATION OVER THE PRIOR 2 YEARS; AMENDING SECTION 15-10-420, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE 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) A
Subject to
the
provisions
of this
section, 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 plus
the growth
factor
provided
for in
subsection
(1)(b). 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 current
year's
value of
newly
taxable
property,
plus the
growth
factor
provided
for in
subsection
(1)(b).
(b) A governmental entity may include a growth factor in the number of mills calculated pursuant to subsection (1)(a) in an amount that is no more than the greater of:
(i) the average rate of inflation for the prior 2 years; or
(ii) the amount of taxable value of newly taxable property in the governmental entity.
(c) For the purposes of subsection (1)(b), the department shall calculate the average rate of inflation for the prior 2 years by using 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.
(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 61-3-561 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 an increased 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."
NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval.
NEW SECTION. Section 3. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to tax increases in excess of the amount authorized in [section 1] in any year beginning after December 31, 1998. If a local government has imposed an increase in excess of the amount provided for in [section 1], the increase must be excluded in calculating the amount of taxes actually assessed for the current year.
- END -
Latest
Version of
SB 232
(SB0232.01)
Processed
for the
Web on
January 10,
2001
(2:26PM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this
Bill |
2001
Legislature | Leg. Branch
Home
This
bill in WP
5.1 |
All
versions of
all bills in
WP
5.1
Authorized
print
version
w/line
numbers
(PDF format)
(406)444-3064