Senator Greg Hertz (Polson, Senate District 7) introduced Senate Bill 1, a Revenue Interim Committee bill to revise the statutory definition of ‘‘blight’’ used when forming urban renewal or tax increment financing (TIF) districts. Hertz told the Senate Tax Committee the goal is to remove duplicative language and tighten criteria so TIFs are used where true blight exists and to protect property taxpayers.

Hertz said the rewrite removes long-standing duplications in statute and focuses the law on structural disrepair, infrastructure deficiencies and other concrete indicators of blight. He described the effort as part of recommendations from the property tax task force and the committee’s interim work. Hertz also said he supports an amendment from the League of Cities and Towns that would narrow and modernize the bill’s language.

Testimony from cities, developers and business groups largely supported refining the definition, but many witnesses urged the committee to adopt the League’s amendment before passage. Jennifer Olson of the Montana League of Cities and Towns said the sponsor had worked with the League and that the bill would benefit from adding language to include infrastructure improvements and unoccupied buildings that have been vacant for extended periods. Olson said the definition matters because forming a TIF district freezes existing tax rolls and redirects new incremental value into the district for a statutory period (commonly 15 years), a trade-off that enables redevelopment but defers tax receipts for other local services.

Proponents who supported the amendment included Jesse Luther of the Hospitality and Development Association of Montana, Dan Brooks of the Billings Chamber of Commerce, and Allison Corbin of the Montana Economic Developers Association. They told the committee many Montana communities already practice inclusive consultation and that the statutory changes would provide consistent rules statewide.

Several witnesses — including city redevelopment officials and the Montana Bankers Association — described the practical elements the amendment seeks to capture: infrastructure upgrades (streets, sidewalks, water/wastewater), long-term vacant or underutilized buildings, and remediation-ready brownfield sites. Amy Steinmetz of the Department of Environmental Quality said DEQ’s Brownfields program often pairs with TIF-funded investments and that the programs can be used together to leverage federal brownfields grants and local TIF funds.

Citizen testimony raised process and scope questions. Bob Filipovich, a Helena resident, urged clarity about how many blighted areas exist and asked whether the bill affects federally designated Opportunity Zones; witnesses from economic development organizations replied that Opportunity Zones are federal designations that may overlay TIF districts but are not changed by this bill.

Informational witnesses from the Department of Revenue (Bryce Kotz, bureau chief) and the Department’s tax-policy staff (Dylan Cole) were available to answer technical questions on boundaries, base valuations and statutory implementation. Committee members asked for a clean amendment to be circulated; the sponsor said he would provide amendments before executive action so members could review changes.

The hearing closed with broad support for clarifying blight definitions but widespread requests from cities, developers and redevelopment agencies to adopt the League’s amendment adding infrastructure and prolonged vacancy criteria. The sponsor said he would provide the agreed amendment in advance of executive action.