Senate bill NO. 123

INTRODUCED BY G. Hertz

By Request of the ****

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING THE BALLOT FOR A BOND ELECTION TO INCLUDE THE ESTIMATED ADDITIONAL PROPERTY TAXES IMPOSED ON A RESIDENCE; AMENDING SECTION 20-9-426, MCA; AND PROVIDING AN APPLICABILITY DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Bond election -- impact on value. (1) Except as provided in subsection (2), the form of the ballot for a bond election must include an estimate of the impact of the election on homes valued at $100,000, $300,000, and $600,000 in terms of actual dollars in additional property taxes that would be imposed in the first year on residences with those values if the bond were to pass. The ballot may also include an estimate of the impact of the election on homes of any other value in the district, if appropriate.

(2) The taxing jurisdiction conducting the bond election may replace the estimate of the impact of the election on a home valued at $600,000 with an estimate of the impact of the election on a home of a different value.

Section 2. Section 20-9-426, MCA, is amended to read:

"20-9-426. Preparation and form of ballots for bond election. (1) The school district shall cause ballots to be prepared for all bond elections.

(2) All ballots must be substantially in the following form:

OFFICIAL BALLOT

SCHOOL DISTRICT BOND ELECTION

INSTRUCTIONS TO VOTERS: Make an X or similar mark in the vacant square before the words "BONDS--YES" if you wish to vote for the bond issue; if you are opposed to the bond issue, make an X or similar mark in the square before the words "BONDS--NO".

Shall the board of trustees be authorized to issue and sell (state type of bonds here: general obligation, oil and natural gas revenue, oil and natural gas revenue for which a tax deficiency is pledged, or impact aid revenue) bonds of this school district in the amount of............ dollars ($..........), payable semiannually, during a period not more than...... years, for the purpose............................. (here state the purpose the same way as in the notice of election)?

If this bond is passed, based on the taxable value of the school district, the property taxes on a home with an assessed market value for tax purposes of $100,000 would increase by $.......... in the first year, of $300,000 would increase by $.......... in the first year, and of $600,000 would increase by $.......... in the first year.

[ ] BONDS -- YES.

[ ] BONDS -- NO.

(3) The school district conducting the bond election may replace the estimate of the impact of the election on a home valued at $600,000 with an estimate of the impact of the election on a home of a different value."

Section 3. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 7, chapter 7, part 1, and the provisions of Title 7, chapter 7, part 1, apply to [section 1].

Section 4. Coordination instruction. If both House Bill No. 543 and [this act] are passed and approved, then [section 1 of House Bill No. 543] is void and [section 1 of this act] must be amended as follows:

Section 1. Bond election -- impact on value. (1) The Except as provided in subsection (2), the form of the ballot for a bond election must include a statement:

(a) the statement that "an increase in property taxes may lead to an increase in rental costs"; and

(b) an estimate of the impact of the election on a home homes valued at $100,000, $300,000, and a home valued at $200,000 $600,000 in terms of actual dollars in additional property taxes that would be imposed in the first year on residences with those values if the bond were to pass. The ballot may also include a statement an estimate of the impact of the election on homes of any other value in the district, if appropriate.

Section 5. Coordination instruction. If both House Bill No. 543 and [this act] are passed and approved and if both contain a section that amends 20-9-426, then the sections amending 20-9-426 are void and 20-9-426 must be amended as follows: