Bill would require advisory committees and local taxing‑jurisdiction representation on TIF districts, sponsors say

Sen. Jeremy Trevis told the House Taxation Committee that Senate Bill 3 would require local governments that adopt tax increment financing provisions to appoint an advisory committee to advise on administration of an urban renewal area or targeted economic development area. The committee would include representatives from affected taxing jurisdictions, such as counties and school districts whose future tax increment could be diverted.

Trevis explained TIF basics for the committee: a base taxable value is set for properties in a district, and tax growth above that base is redirected into improvement projects intended to increase property values and expand the tax base. He said SB 3 aims to ensure that those jurisdictions that do not have to give formal permission for a TIF nevertheless have a formal seat at the table to provide input and oversight.

Cities and local governments, school‑education advocates, and business groups testified in support. The City of Bozeman, the Montana Quality Education Coalition, the City of Great Falls, the Montana League of Cities and Towns, the Montana Chamber of Commerce, and local chambers said the advisory committee would increase transparency, provide better local representation, and improve planning and community engagement.

Supporters praised language that specifies representation from each taxing jurisdiction and the transition instruction language included in the senate amendment. Sponsor Trevis said the change is a “light touch” that preserves local authority while improving oversight.

No opponents appeared in the room; the committee closed the hearing and moved to the next agenda item.