Montana 2023 Regular Session

Montana House Bill HB613

Introduced
2/17/23  

Caption

Using excess revenue to fund local property tax relief

Impact

If passed, this bill would have a significant impact on state budgetary procedures by requiring that a portion of excess revenue is earmarked for local property tax relief efforts. This could alter current financial flows and enhance support for school transportation budgets, potentially improving access to education for students, particularly in more rural or financially strapped districts. It also establishes a framework that ensures that local governments have a more direct funding source for their transportation needs.

Summary

House Bill 613 aims to utilize excess state revenue for funding local property tax relief, specifically targeting the reduction of school transportation property tax levies. The bill establishes a 'school transportation property tax relief account,' where funding will be allocated to help ease the financial burden of these levies on local school districts. The provisions mandate that the state superintendent of public instruction will distribute funds annually, up to a cap of $60 million, based on the previous year's transportation reimbursements for each school district.

Contention

While there is broad support for the intent of easing property tax burdens, some concerns have been raised regarding the manner in which funds will be allocated and the possible implications for local control over education finances. Critics argue that tying state funding too closely to previous reimbursement levels may favor larger districts or those that utilize school transportation more heavily, potentially neglecting smaller districts or those that already face wider financial challenges. There are also questions about the sustainability of these funding streams and whether relying on excess revenue may lead to fluctuations in financial support.

Companion Bills

No companion bills found.

Previously Filed As

MT HB887

Provide property tax relief funded with lodging tax revenue

MT SB5151

Limiting annual state spending growth to median worker wage growth, with excess revenues dedicated to property tax relief.

MT HB1074

To Amend The Property Tax Relief Trust Fund; And To Require A Higher Vote Threshold For Using Moneys In The Property Tax Relief Trust Fund For Purposes Other Than Property Tax Relief.

MT SB90

Redistribute certain state tax revenue to primary residence property tax relief

MT S1833

Eliminates Energy Tax Receipts Property Tax Relief Aid and Consolidated Municipal Property Tax Relief Aid; establishes Municipal Property Tax Relief Fund.

MT A1209

Eliminates Energy Tax Receipts Property Tax Relief Aid and Consolidated Municipal Property Tax Relief Aid; establishes Municipal Property Tax Relief Fund.

MT SB534

Imposing a nameplate capacity tax and a production tax upon certain wind farms and solar facilities, crediting the nameplate capacity tax and the production tax revenue to the property tax relief fund, creating the property tax relief fund, transferring moneys from the property tax relief fund to the state school district finance fund and decreasing the statewide property tax levy for schools.

MT HB18

Deposit non-levy revenue in school equalization and property tax relief account

MT H0961

Amends and adds to existing law to expand the homestead property tax exemption, to increase the sales tax rate, and to direct sales tax revenue to taxing districts to replace property tax revenue lost from the homestead exemption expansion.

MT S1762

Establishes surplus revenue reserve account in the Property Tax Relief Fund if certain levels of unanticipated gross income tax revenue are collected.

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