Committee: Revenue and Transportation Interim Committee
Author: Megan Moore
Posted on July 20, 2018
The Revenue and Transportation Interim Committee met July 10-11 in Helena to wrap up interim studies on agricultural property valuation, tax increment financing (TIF), and the taxation of centrally assessed and industrial property.
At the May meeting, the committee asked for three draft bills for the TIF study: one to include concepts forwarded by a TIF working group, one to require remittance of increment not necessary for bond payments after a certain time period, and one to revise laws related to accessing private property. After taking public comment, the committee did not request any of the bills as committee legislation.
The committee also reviewed three draft bills for the study of the taxation of centrally assessed and industrial property. The three bills addressed the same concept: using the previous year’s financial information to value centrally assessed property. Public comment from interested parties indicated there was not consensus on how to implement the concept, and the committee did not advance any of the bill drafts.
For the study of agricultural property valuation, staff provided a list of possible topics for bill drafts. The committee requested two bill drafts to be presented at the September meeting. One draft provides for agricultural classification for up to 5 years for property with at least 100 fruit trees or 120 vines. Those properties are currently required to meet the $1,500 gross revenue requirement. The other requested draft will allow the maximum water cost deduction for irrigated land without requiring the owner to submit energy costs. The committee also showed interest in a bill draft to require all property classified as agricultural to be used for agricultural purposes. Staff will provide the committee a draft addressing this concept prepared for the 2015-2016 Revenue and Transportation Interim Committee.
The Departments of Revenue and Transportation presented their agency legislation requests to the committee, which approved the drafting of the three bills requested by DOR and the nine bills requested by MDT. These bills will be “by request of” the agency and are not endorsed by the committee.
Other topics during the two-day meeting included an overview of the impacts of federal tax changes on the state individual and corporate income tax systems, presentation of Department of Transportation performance audits required by House Bill 473, the 2021 biennium revenue outlook, and required reports from the Department of Revenue on tax haven countries, property tax abatements for gray water systems, and an update on the review of property tax exemptions.
The committee will take public comment on the bill drafts for the agricultural property study at its next meeting on September 13 in Helena. Written public comment may be submitted to committee staff. For more information, visit the committee’s website or contact Megan Moore, committee staff.
Committee Website: www.leg.mt.gov/rtic
Committee Staff: memoore@mt.gov or 406-444-4496
