Require voted levies to be in dollars rather than mills
Summary
HB 20 revises Montana’s property-tax levy rules for local governments and voter-approved levies. The bill requires voted levies to be stated in dollars rather than mills, and it updates the election language for new or increased levies so ballot questions must identify the purpose, the dollar amount or mill amount to be raised, the duration of the levy, and the estimated tax impact on homes valued at $100,000, $300,000, and $600,000. It also directs that ballot language warn voters that higher property taxes may increase rental costs.
The bill further amends the state’s mill-levy calculation provisions in 15-10-420 and 15-10-425, MCA, to allow certain voter-approved levies other than school district levies to be subject to the same calculation framework used for general mill levies. It repeals 7-6-4431, MCA, which previously governed authorization to exceed or impose less than the maximum mill levy by election. The measure also preserves the ability of governing bodies to reduce an approved levy in a given year without losing future authority up to the voter-approved maximum.
Impact
HB 20 changes how local taxing entities present and administer voter-approved property-tax levies, shifting the focus from mills to dollar amounts for ballot measures and levy authorizations. It affects counties, cities, towns, consolidated governments, school districts, and other taxing entities by standardizing election disclosures and by allowing more voted levies to be calculated under the statutory mill-limit framework in 15-10-420 and 15-10-425. The bill also amends how the Department of Revenue calculates certain levy limits and repeals an older statute that specifically addressed exceeding or reducing mill levies through elections.
Sentiment
The bill appears to have received generally favorable but not unanimous support. It passed both chambers and cleared several votes with solid majorities, including committee approval in both the House and Senate. However, the floor votes show meaningful opposition, especially in the House, suggesting that while the policy was acceptable to many lawmakers, it was still debated and not broadly consensus-driven.
Contention
The main points of contention likely centered on the shift from mills to dollars and on whether expanding the calculation provisions to more voted levies would alter local taxing authority or voter understanding. Supporters likely viewed the bill as improving transparency and making levy questions easier for voters to understand, while opponents may have been concerned about changes to local tax flexibility, the mechanics of levy calculations, or the potential for higher property-tax burdens. The required ballot statement about rental costs also suggests sensitivity around the broader economic effects of property-tax increases.
Tax increment districts, Major 21st Century Manufacturing Zone allowed to be located within a tax increment district without regard to size of district and further provides for use of ad valorem tax revenues collected within a district
Tax increment districts, Major 21st Century Manufacturing Zone allowed to be located within a tax increment district without regard to size of district and further provides for use of ad valorem tax revenues collected within a district
Economic development: other; local community stabilization authority act; amend to update the cross-reference to MCL 211.1053. Amends sec. 5 of 2014 PA 86 (MCL 123.1345). TIE BAR WITH: SB 0659'25