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Resident urges county probe into South Billings TIF, alleges improper capture of tax revenue
Summary
A member of the public told commissioners the South Billings tax increment finance (TIF) district improperly captured anticipated tax revenue and urged the county to investigate; commissioners did not take action at the meeting.
Kevin Nelson, a Billings resident, told the Yellowstone County commissioners during public comment on April 15 that the expansion of the South Billings tax increment finance (TIF) district improperly diverted tax revenue from county and school districts and urged the board to investigate.
Nelson cited a 2020 agenda and minutes related to a TIF expansion, suggesting the city and developers had prior knowledge of prospective development and used that knowledge to redraw TIF boundaries to capture future tax increments. He said the captured revenue could run through the TIF's expiration (which he said could be through 2043) and described the practice as "insider information" and "tax fraud" in his remarks.
Nelson also referenced a Department of Revenue (DOR) involvement in a separate Anaconda case as precedent, saying the DOR blocked a TIF capture there. He urged commissioners, as fiduciaries of county taxpayers, to investigate and "claw back" revenues he said were improperly captured, and to require developers to present to the public if they want the TIF.
Commissioners acknowledged Nelson's comments but took no action or formal direction on the matter during the meeting. The transcript records the public-comment exchange but does not record supporting evidence or any follow-up assignment to staff.
Why it matters: Nelson framed his remarks as a legal and fiscal concern that, if substantiated, could affect county and school tax revenues and the governance of TIF districts. The transcript shows the issue was raised in public comment but did not prompt an immediate inquiry or agenda item during this session.
