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House panel hears bill to narrow impact-fee uses, cap increases to an inflation index
Summary
Senate Bill 133 would remove a 5% administrative allowance, strike broad "other facilities" language and tie impact-fee growth to an inflation index. Municipal officials warned the changes could reduce local capacity to fund infrastructure and shift costs to taxpayers.
Senator Greg Hertz told the House Local Government Committee SB 133 is intended to tighten how local governments use impact fees and to limit annual increases to a stated inflation measure. "There's nothing in the bill that basically says you cannot do impact fees," Hertz said, adding the bill removes permissive language that he said had allowed fees to be used for a wide range of items.
Proponents, including Ashley Martinez of the Montana Building Industry Association, said indexing fees to an inflation metric and clarifying…
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