Montana House Bill HB861

Montana 2023 Regular Session

• Introduced: 3/20/23
• Refer: 3/21/23
• Engrossed: 4/4/23
• Refer: 4/5/23
• Failed: 5/8/23

Caption

Provide business property tax exemption during state of emergency or disaster

Impact

This bill directly impacts local government revenue by enabling businesses affected by emergencies to reduce their property tax burden. The legislation requires that property tax revenue lost as a result of these exemptions is not to be compensated by increasing taxes on other taxpayers. Thus, local governments must adjust their budgets and operational spending to accommodate the loss of funds, which could lead to significant changes in local governance practices during emergencies.

Summary

House Bill 861 aims to provide property tax relief for businesses that face imposed curfews or occupancy restrictions during declared states of emergency or disasters. The bill stipulates that when a government entity enforces such measures for more than 14 consecutive days, qualifying businesses will be eligible for property tax exemption credits. The initial exemption is set at 25% of the property tax attributed to the government's budget and can be extended based on the duration of the restrictions.

Contention

A notable point of contention surrounding HB 861 is the balance of economic support for businesses against the financial stability of local governments. Critics argue that while providing immediate financial relief to businesses is vital, the long-term implications on government funding and the ability of local entities to respond to other community needs may be jeopardized. Some lawmakers raised concerns regarding whether emergency measures should have lasting impacts on taxation frameworks and government budgets.