Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Tax Reform topic
No spam. Unsubscribe anytime.
House Taxation takes up bill to require voter levies be set in dollars rather than mills
Summary
Sponsors presented House Bill 20 to require many voter‑approved levies be specified as dollar amounts instead of mill levies; proponents said it clarifies voter intent while opponents warned set‑dollar levies can erode operational funding and proposed amendments (including inflation adjustments). Committee expects amendments before executive action.
Representative Larry Brewster opened the hearing on House Bill 20, describing a measure that would, for many local voted levies, require the ballot question to specify a dollar amount rather than a mill levy. Brewster said the change aims to prevent local governments from collecting more revenue simply because property values rise; he noted an amendment removes school districts from the bill because education budgeting is governed under Title 20.
Supporters told the committee the bill clarifies what voters approve and limits local governments’ ability to capture value gains from reappraisals. Bob Story of the Montana Taxpayers Association and Daniel Cox of the Montana Association of Realtors said asking for a fixed dollar amount forces clearer voter choices. Doug Reisig of the Montana Quality Education Coalition thanked the sponsor for the amendment removing schools and said the change reduces ambiguous language.
Opponents raised operational concerns. Kelli Lynch, executive director of the Montana League of Cities and Towns, described how the existing statutory formula (15‑10‑4‑20 and 15‑10‑4‑25) calculates allowable revenue and explained that many operational levies are deliberately structured as mills so revenue tracks changes in property value and labor/operational costs. Lynch said a fixed dollar amount can fail to keep pace with inflation and ongoing personnel costs, and she proposed an amendment that would allow up to full inflation adjustments on voted dollar levies so municipalities could retain predictable funding for ongoing services.
Jennifer Hensley, representing Missoula County, described a prior dollar‑levy experience: a dollar authorization passed years earlier now produces far less purchasing power because of inflation. She cautioned that fixed‑dollar levies could leave some local services underfunded as jurisdictions grow. Charles Denow, representing the city of Great Falls, said similar concerns about operational costs and inflation would be addressed by the amendment under discussion.
Committee members used the hearing to probe technical impacts of converting mills to dollars and to ask about the availability of amendments and fiscal notes. Staff explained that some amendments are still being drafted and fiscal notes may be posted later; sponsors said they expected amendments before executive action. Representative Brewster closed by urging the committee to consider predictability in the tax system and indicating he would evaluate proposed amendments before executive action.
The committee did not take a final vote; members signaled they expect one or more technical amendments addressing inflation adjustments and scope before any executive action.
