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Bill to bar TIF increments from counting as 'new' property at sunset draws sharp testimony
Summary
Senate Bill 2 would prevent tax increment financing (TIF) increments from being counted as newly taxable property when a district sunsets; supporters said it returns value to taxpayers, while a broad coalition of cities, developers and business groups warned it would undercut TIF as an economic-development tool.
Senator Greg Hertz (Senate District 7) told the Senate Tax Committee that Senate Bill 2 would change the treatment of taxable value when a tax increment financing (TIF) district sunsets: the increment that previously flowed into other taxing jurisdictions as newly taxable value would not be treated as ‘‘new property’’ for purposes of budget calculations under current statute (section 15-10-420, cited in testimony). Hertz said the change is intended to return value to taxpayers after a district’s term, advancing property tax relief.
Bob Story of the Montana Taxpayers Association testified in support, outlining the history of 15-10-420 (the post-CI-75 implementation statute) and arguing that when a TIF expires, the increment should function like newly taxable value that reduces mills and provides tax relief for residents who subsidized redevelopment. Story said…
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