Montana bill would require public hearings and greater transparency for TIF districts

House Taxation Committee members heard proponents urge passage of House Bill 19, which supporters said would standardize public hearings and invite affected taxing jurisdictions into decisions about tax increment financing districts.

Supporters framed HB19 as a transparency measure. Danny Hess, city of Bozeman, told the committee that "tax increment finance is a really essential tool for affordable housing and economic development" and that the bill "solidifies that requirement of making decisions about TIF districts in public hearings offering that opportunity for public participation and collaboration with those taxing jurisdiction partners." Mark Taylor of the Hospitality and Development Association of Montana said the change is a logical addition to the statute and would expand public input.

Ellen Buchanan, director of the Missoula Redevelopment Agency, spoke remotely in favor of the bill, saying it would improve public understanding of how tax increment financing and urban renewal districts operate. A Montana Chamber of Commerce representative noted the chamber's interest in preserving and improving TIF statutes.

During questioning, committee members asked how common formal hearings are across localities; proponents answered that many jurisdictions simply extend districts by vote without inviting other taxing entities and that HB19 aims to ensure those partners—counties, school districts and other taxing bodies—are given an opportunity to participate. The sponsor closed by urging the committee to pass the bill.

The committee did not take a vote on HB19 during the hearing; the sponsor asked for a favorable recommendation going forward.