Senator Jeremy Trevis (Great Falls, District 10) introduced Senate Bill 3 to the Senate Tax Committee, proposing that a district using tax increment financing (TIF) must create an advisory committee that includes representatives of overlapping taxing jurisdictions. The bill was presented at a committee hearing as a recommendation of the Revenue Interim Committee.

Trevis described TIF as a mechanism that freezes a base taxable value inside a defined district and directs the growth — the increment — back into development inside the district rather than to other taxing jurisdictions. He told the committee the advisory committee requirement is a “light touch” intended to give school districts, counties and other affected taxing jurisdictions a formal seat at the table to provide input on development that diverts incremental tax revenue to a district.

Supporters from local government, business and development groups told the committee they back the bill for the transparency and participation it would bring. Jennifer Olson, government affairs director for the Montana League of Cities and Towns, said, “We rise in support of senate bill 3,” and called for increased communication among overlapping taxing jurisdictions. Adrienne Cotton, representing the Montana Building Industry Association, said SB 3 would foster “transparency, collaboration, and accountability” and urged a do-pass recommendation. Todd O’Hare of the Montana Chamber of Commerce referenced private-sector convenings after the 2023 session that sought more oversight of TIF and said the advisory-council approach made sense to investors.

City economic development officials said their local practice often already includes outreach to affected jurisdictions. Dani Hess, speaking for the city of Bozeman, said the bill “adds another layer of community engagement and participation” and aligns with Bozeman’s public-participation efforts. Dan Brooks of the Billings Chamber said Billings already operates TIF districts with advisory committees and asked the committee to pass SB 3. Representatives of the Montana Bankers Association, the Hospitality and Development Association of Montana, the Montana Economic Developers Association and several cities also testified in support. No opponents appeared during the hearing.

An informational witness from the Department of Revenue, Bryce Kotz, bureau chief with the Property Assessment Division, was available to answer technical questions about TIF boundaries and base valuations. Committee members asked whether the bill should set minimum meeting frequency or committee size; Trevis said he expected districts would largely determine those details, though he did not rule out a minimal statutory requirement such as annual meetings. Testimony and committee questions included discussion of local practice variation and the potential for advisory committees to reduce conflicts among taxing jurisdictions.

The committee took no formal action at the hearing. Proponents said the bill preserves TIF as a local economic development tool while expanding participation by affected governments; no formal opponents testified and no amendments were offered on the floor during the hearing. The sponsor indicated he supports the Revenue Interim Committee request and urged the committee to give SB 3 a favorable report for further consideration.