Representative Sherry Essman introduced House Bill 87 on behalf of the Department of Revenue. The bill would amend portions of Montana Code Annotated (citations in the bill: 15-6-201 and 87-1-603 MCA) to clarify the tax status and assessment process for certain lands owned by the Department of Fish, Wildlife and Parks (FWP).

Essman said the proposal responds to Recommendation 4 of a legislative performance audit that asked statute and practice to be aligned so that FWP-owned lands are treated consistently for tax-recording and accounting purposes. "This bill would amend the statute to align with the Department of Revenue's current practice of leaving these properties on the tax rolls as taxable," she told the committee.

Bryce Kaatz, bureau chief with the Property Assessment Division, testified for the Department of Revenue and described the bill as a status-quo cleanup: the department and counties have historically left many FWP properties on the tax rolls and billed them the same amounts a private owner would be expected to pay; the statute contains an alternative procedure that has not matched actual administration. Kaatz said the proposed change is intended to simplify administration for the department, county treasurers and FWP.

Representatives of the Department of Fish, Wildlife and Parks described a small drafting issue in the bill as introduced and supported a proffered amendment. The amendment excludes property purchased by FWP before May 10, 2009 from the alternative-payment drafting error in the original language; Fish, Wildlife and Parks witnesses said the agency has historically paid taxes on many older wildlife-management areas and wanted the bill to preserve that practice. David Singer of the Legislative Audit Division explained that the change implements the performance-audit recommendation to make statute and practice consistent.

Bill Schenk, representing Fish, Wildlife and Parks, said the agency supports HB 87 with the offered amendment and emphasized the change is intended to be neutral with respect to the agency's fiscal burden. No opponents spoke during the hearing; no committee votes were recorded on the bill in the transcript.