Montana State Legislature

March 21-22, 2024

Agenda

Property Tax Modernization Study: Property Valuation

• Legal Framework for Property Valuation
• Revaluation Cycles in Montana and the U.S. - Megan Moore

Property Tax Modernization Study: Data Tools

• LFD Interactive Tools: New Dashboards

Property Tax Modernization Study: 15-10-420 Calculation

• 15-10-420: Including Income Factor
• Inflation Factor for Mill Levy Calculation in 15-10-420, MCA

Property Tax Modernization Study: 15-10-420 Recommendations Follow-up

• Estimating School Equalization Mills in the Revenue Estimate - Megan Moore
• Combining School Equalization Mills

Property Tax Modernization Study: Real Property Exemption Audit Follow-up

• Revised exempt property review draft (PD 23)
• Exempt property review draft (previously presented)
• Beneficial use with recapture draft (PD 22)
• Beneficial use draft(previously presented)

Property Tax Modernization Study: Voted Levies

• Voted Levies - Megan Moore

Property Tax Modernization Study: Tax Increment Financing (TIF)

• TIF: Reporting in Montana & U.S.
• TIF: Input from County and Schools - Megan Moore
• Butte-Silver Bow Handout
• School District Input on TIF Districts
• 7-15-4288 Lists Costs that May be Paid with Tax Increment
• 1988 Attorney General's Opinion: Use of Tax Increment Funds
• TIF: Duration of Districts - Megan Moore

Agency Monitoring: Montana Tax Appeal Board

• Active Cases
• Montana Tax Appeal Board Totals
• County Appeal Totals

Revenue Estimating and Monitoring

• FY 2024 Quarterly Financial Report- Sam Schaefer, LFD
• FY 2024 Year-to-Date Update

Tax Credit Review: Qualified Endowment Tax Credit

• Qualified Endowment Credit- Megan Moore
• Annual Report on the Charitable Endowment Credit
• Public Comment:
  • Mary Rutherford

Agency Monitoring: Department of Revenue

• Real Property Informal Reviews and Appeals
• Major Case Update
• Annual Report on Student Scholarship Organization Credit
• Property Tax Rebate Analysis

Agency Monitoring: Administrative Rule Review

• Administrative Rule Review - Jaret Coles

Agenda

Revenue Estimating and Monitoring

• FY 2024 January Year-to-Date Revenue Update
• FY 2024 Year-to-Date Slides

Tax Credit Review: Preservation of Historic Buildings

• Credit for Preservation of Historic Buildings
• Tax Credit Review Worksheet

2024 Income Tax Changes 

• Overview of the Individual Income Tax in Montana and Changes Made During the 2021 Legislative Session in Senate Bill No. 399
• Supplement: Individual Income Tax in Montana Notable Changes Made During The 2023 Legislative Session

Agency Monitoring: Department of Revenue

• Updated Rebate Statistics
• Update on 2024 Qualified Education Donations
• Land Classification Working Group
• Department of Revenue Major Case Update

Agency Monitoring: Administrative Rule Review

• Administrative rule review

Property Tax Modernization Study: Tax Increment Financing

• Blighted Area Statutes
• Blight in the Urban Renewal Context
• TIF Administration Statutes
• Columbia Falls Handout
• Belgrade Downtown Design Plan
• Ravalli County TEDD and North Hamilton

Property Tax Modernization Study: Real Property Exemption Audit Follow-up

• Exempt Property Review Draft
• Beneficial Use Draft
• Public Comment:
  • Jeff Essman

Property Tax Modernization Study: Data Tools

• Property Tax Model Updates

Property Tax Modernization Study: November Requests

• Information Request:  Bond Election Vote Requirements
• Information Request:  NorthWestern Energy Property Tax Tracker
• Information Request:  Paying Property Taxes Through Escrow
• Information Request:  Exempt Nonprofit Healthcare Property by County

Property Tax Modernization Study: Administering Property Tax Payments

• Alternative Payment Schedule Documents
• Sample Property Tax Bills
  • Lewis and Clark County Sample Property Tax Bill

Property Tax Modernization Study: Litigation Update

• Property Tax Litigation Update
• Montana Association of Counties v. State of Montana

Property Tax Modernization Study: Local Government Levy Limits

• Local Government Levy Limits
• 15-10-420, MCA
• Calculating the Maximum Property Tax Mill Levy According to 15-10-420, MCA

Policies to Include in 15-10-420

• Montana Association of Counties
• Montana Taxpayers Association Proposed Changes to 15-10-420

Property Tax Modernization Study: Implementation of SB 332

• SB 332
• SB 332 and Certified Values

Agenda

Agency Monitoring: Montana Tax Appeal Board

• County Appeal Totals
• Appeal Totals

Property Tax Modernization Study

• Property Tax Litigation Update - Jaret Coles
• Supplemental Property Tax Litigation Update
• Fiscal Impacts of Property Tax Exemptions and Abatements- Megan Moore
• Tax Increment Financing Overview- Megan Moore
• 2007 Property Tax Rebates Originally Proposed by Gov. Schweitzer Memo
• Memo: Public Utilities May Disclose State and Local Taxes on Customer Bills- Megan Moore
• Property Tax Study: Using Data to Identify Potential Problems - Megan Moore
• Public Comment:
  • Mehmet Casey, Downtown Billings Partnership
  • Sue Baker, Yarn Bar
  • Kellie Pierce, Great Falls Business Improvement District
  • Michelle Williams, Billings Depot
  • Bob Story, Montana Taxpayers Association
  • Julie Foster, Ravalli County Economic Development Authority

Agency Monitoring: Department of Revenue

• Rebate Update
• Appeal Memo
• AB 26 Postcard
• Litigation Update

Administrative Rule Review

• Administrative Rule Review- Jaret Coles
• MAR Notice No. 42-1068
• MAR Notice No. 42-1069

Revenue Estimating and Monitoring

• General Fund and School Equalization Account Revenue Monitoring Report
• Revenue Interim Committee Year-To-Date Update

Tax Credit Review: Property Used to Collect or Process Reclaimable Material

• Credit for Property Used to Collect or Process Reclaimable Material - Megan Moore
• Tax Credit Review Worksheet
• Public Comment:
  • Alan Christensen

Tax Credit Review: Infrastructure Use Fee Credit

• Infrastructure User Fee Credit Bill Draft - Megan Moore

Agenda

Property Tax Study

• Basics:
  • Property Tax Slides -- Megan Moore, LSD
  • Property Tax Overview -- Megan Moore, LSD
  • Property Valuation Process -- DOR
  • Property Taxes in Montana: A Brief History
  • Constitutional Property Tax Parameters
• Limits:
  • Property Tax Limits
  • Max Mill Levy
  • 15-10-420 Calculation Exercise: Worksheet
    • FY 23 Calculations: Great Falls, Helena, Lake County, Missoula, Sanders County, Yellowstone County
    • Certified Taxable Values: Great Falls, Helena, Lake County, Missoula, Sanders County, Yellowstone County
  • Determination of Newly Taxable Property -- DOR
  • Calculation of State Mills -- DOR
  • Perspective on Carryforward Authority for State Mills -- Jaret Coles, LSD
  • 15-10-420 Discussion -- Bob Story
  • History Regarding the Application of Section 15-10-420 to School District Levies Established under Title 20 -- Lance Melton, MTSBA
• School Funding:
  • K-12 Funding
  • School BI Tool
  • School Equalization and Property Tax Reduction Account slides
• Exemptions:
  • Performance Audit: Real Property Tax Exemptions
    • Real Property Tax Exemptions slides
  • Real Property Tax Exemptions Performance Audit -- DOR
• Comparisons:
  • Property Tax Model -- LFD
    • Property Tax Model Power BI Tutorial
  • Property Tax Data Questions
• Public comment
  • Jason Mercier
  • Bob Story, Montana Taxpayers Association
    • Legislative Changes That Could Be Considered
    • Montana Taxes Comparisons
  • Candace Payne, Lewis & Clark County Commissioner
  • Margaret MacDonald, Big Sky 55+

Administrative Rule Review

• Administrative Rule Report -- Jaret Coles, LSD

Revenue Estimating and Monitoring

• Fiscal Year End Report -- Sam Schaefer, LFD
  • Accommodations Tax -- Joe Baan, LFD

Agency Monitoring: Department of Revenue

• Land Classification Study Working Group
• Measuring the Quality of Reappraisal
  • Quality of Reappraisal Highlights
• Real Property Informal Reviews and Appeals
• Department of Revenue Major Case Update

Tax Credit Review

• Infrastructure Use Fee Tax Credit -- Megan Moore, LSD
• Infrastructure User Fee Credit -- Department of Revenue
• Tax Credit Review Worksheet

Administrative Matters

• Revised Work Plan
• Decision Matrix

General Public Comment

• Kent Hanawalt

Agenda

Administrative Matters – Megan Moore, Committee staff

• Rules, Procedures, and Guidelines for Interim Committees
• Presiding Officer History
• Summary of Enacted Tax Legislation

Draft Interim Work Plan – Megan Moore

• Draft 2023-2024 Interim Work Plan
  • Draft Work Plan Decision Matrix
• Public Comment
  • Bob Story, Montana Taxpayers Association

Revenue Estimating & Monitoring

• Memo: General Fund Revenue Year-to-Date Update -- LFD Revenue Team

Agency Monitoring: Administrative Rule Review – Jaret Coles, Staff attorney

• Overview of Rulemaking and Administrative Rule Activity

Agency Monitoring: Montana Tax Appeal Board

• Open Appeals
• Member Manual for County Tax Appeal Board

Agency Monitoring: Department of Revenue

• Tax Season 2023 Update
• Memo: Department of Revenue Bill Implementation Highlights -- Tony Zammit
• Memo: Department of Revenue Major Case Update -- David R. Stewart
• Montana Property Tax Relief flyer
• 2023 Tax Rebates

Ballot Measure #2

• Text of Ballot Measure #2
• Legal sufficiency review of Proposed Ballot Measure No. 2
• Ballot Measure #2 fiscal note

General Public Comment

• Jeff Essmann
• Gov. Greg Gianforte
• Mari Katherine Hodges
• Tammie Milligan