The Revenue Interim Committee and the HJ 35 Study Committee met September 24-25 in Helena to continue work on the study of state and local tax policy and other Revenue Interim Committee assigned duties.

The HJ 35 Study Committee, which is composed of all members of the Revenue Interim Committee and six public members, used the National Conference of State Legislature’s “Principles for Evaluating State Tax Sources” as a structure for examining Montana’s tax system. The committee received background information about each principle along with details related to the principle and specific to Montana’s tax system. Before the next meeting, committee members will complete a survey evaluating the top revenue sources on the principles. The survey information will be used to facilitate small group discussions in November with the intent of adoption of a study plan by the conclusion of the meeting.

To fulfill the Revenue Interim Committees agency monitoring duties, the Department of Revenue provided updates on informal property appeals, newly taxable value from the recent property reappraisal, and major litigation involving the Department. The Legislative Fiscal Division also provided the FYE 2019 Financial Report as part of the committee’s revenue estimating and monitoring duties.

House Bill 723 requires the Revenue Interim Committee to review six tax credits this interim. The committee received an overview of the criteria included in the legislation and discussed focusing the review on: the purpose of the credit, whether the purpose is a valid public purpose, whether the credit is accomplishing the purpose, at what cost the credit may be accomplishing the purpose, and identification of criteria that indicate the credit is successful.

The committee’s next meeting will be November 18-19, 2019, at the Capitol in Helena. For more information, visit the committee’s website or contact committee staff, Megan Moore.

Committee Website: https://www.leg.mt.gov/committees/interim/2019rvic/
Committee Staff: memoore@mt.gov or 406-444-4496