The Interim

Revenue and Transportation Interim Committee

RTIC to Review Requested Legislation, Consider Effects of Federal Tax Changes

Committee: Revenue and Transportation Interim Committee
Author: Megan Moore
Posted on July 2, 2018

Image of a hayfield and the sun's rays through clouds

The Revenue and Transportation Interim Committee will meet July 10-11 in the Capitol building. The meeting will begin at 10:30 a.m. on Tuesday in Room 102 and continue Wednesday at 8:30 a.m. in Room 317. The agenda is available on the committee website.

The meeting will largely focus on wrapping up the committee’s three studies on agricultural property classification and valuation, tax increment financing (TIF), and the taxation of centrally assessed and industrial property. The committee will seek public comment on requested bill drafts and review draft final reports for each study.

For the study of the classification and valuation of agricultural property, the committee requested additional analysis on specialty crops, the impact of moving property under a residence to market value, and practices in Idaho and Washington related to fruit trees and vines. The committee will review a list of possible bill draft ideas that could be requested for review at the September meeting.

The committee will review three requested bill drafts for the TIF study:

  • LCtif1 clarifies who has decisionmaking authority for districts that use TIF and requires an impact analysis if the adoption or extension of a TIF provision would result in base taxable value for all districts in the taxing jurisdiction in excess of 35% of certified taxable value;
  • LCtif2 limits the use of tax increment after a certain period of time to bond payments unless the district makes a new finding of blight or infrastructure deficiency; and
  • LCtif3 provides that a municipality may enter private property within a district that uses TIF only to make a public safety assessment.

After hearing a description of a conceptual bill idea to move the lien date for centrally assessed property back 1 year, the committee asked staff to work with stakeholders and provide a draft at the July meeting. The committee will receive three bill drafts for consideration.

The meeting will also include an overview of changes in the Tax Cuts and Jobs Act enacted in 2017 and whether and how the state is impacted by the revised federal law.

Another item of interest is the presentation by the Legislative Audit Division of two audits required by House Bill 473 (2017), which increased the fuel tax and special fuels tax. The audits focus on highway funding and maintenance.
For the committee’s revenue estimating and monitoring duties, the Legislative Fiscal Division will present the 2021 Biennium Outlook and a general fund update.

Agency monitoring agenda items include an administrative rule review and updates from the departments of Revenue and Transportation. Each agency will also have the opportunity to ask the committee to make legislation requests on behalf of the agencies. The Department of Revenue update will include required reports on countries that may be considered tax havens, the use of property tax abatements for gray water systems, and the review of property tax exemptions required by House Bill 389 (2015).

The meeting will be live streamed at http://leg.mt.gov and will be broadcast on Television Montana (TVMT).  Please check your local channel listings to find TVMT in your area. For more information about the meeting, including a full agenda, visit the committee’s website or contact Megan Moore, committee staff.

Committee Website: http://leg.mt.gov/rtic
Committee Staff: memoore@mt.gov or 406-444-4496

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