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1 HOUSE BILL NO. 483
2 INTRODUCED BY C. SPRUNGER, W. GALT, S. NOVAK, L. MUSZKIEWICZ, M. NIKOLAKAKOS, P.
3 ELVERUM, C. SCHOMER, C. COCHRAN, E. TILLEMAN, M. BERTOGLIO, G. HUNTER, L. JONES, W.
4 MCKAMEY, D. FERN, M. YAKAWICH, S. FITZPATRICK, K. WALSH, R. MINER, B. BARKER, L. BREWSTER,
5 J. FITZPATRICK, G. HERTZ, G. PARRY, L. REKSTEN, M. ROMANO, M. THANE, J. DARLING, V. MOORE
6
7 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING SCHOOL FUNDING LAWS RELATED TO
8 PROPERTY TAXES; REQUIRING THE OFFICE OF PUBLIC INSTRUCTION AND THE DEPARTMENT OF
9 REVENUE TO REPORT ON THE IMPACTS OF REAPPRAISAL ON SCHOOL FUNDING AND PROPERTY
10 TAXES; PROVIDING THAT THE STATE AND COUNTY SCHOOL EQUALIZATION MILLS AND
11 VOCATIONAL-TECHNICAL EDUCATION MILLS ARE FIXED AMOUNTS; PROVIDING THAT SCHOOL
12 LEVIES ARE NOT SUBJECT TO SECTION 15-10-420, MCA; REVISING THE PROPERTY TAX RELIEF
13 MECHANISMS WITHIN THE SCHOOL EQUALIZATION AND PROPERTY TAX REDUCTION ACCOUNT;
14 INCREASING GUARANTEED TAX BASE MULTIPLIERS FOR FISCAL YEAR 2026 TO PROTECT
15 PROPERTY TAXPAYERS; LOWERING PROPERTY TAXES BY INCREASING THE ON-SCHEDULE
16 REIMBURSEMENT RATES FOR SCHOOL TRANSPORTATION AND REVISING THE STATE-COUNTY
17 SHARE OF THOSE REIMBURSEMENTS; ESTABLISHING REPORTING REQUIREMENTS; REVISING
18 DEFINITIONS; AMENDING SECTIONS 15-7-111, 15-10-420, 20-9-306, 20-9-331, 20-9-333, 20-9-336, 20-9-
19 360, 20-9-366, 20-9-367, 20-9-368, 20-9-404, 20-9-525, 20-9-533, 20-10-141, 20-10-144, 20-10-145, 20-10-
20 146, 20-25-439, AND 90-6-403, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN
21 APPLICABILITY DATE.”
22
23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
24
25 Section 15-7-111, MCA, is amended to read:
26 "15-7-111. (1) (a) The department shall
27 administer and supervise a program for the reappraisal of all taxable property within class three under 15-6-
28 133, class four under 15-6-134, and class ten under 15-6-143 as provided in this section. All property within ****
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1 class three, class four, and class ten must be revalued every 2 years. Except as provided in subsection (1)(b),
2 all other property must be revalued annually.
3 (b) Beginning January 1, 2024, all centrally assessed property must be revalued in the time
4 periods provided for in 15-23-101(2).
5 (2) The department shall value newly constructed, remodeled, or reclassified property in a manner
6 consistent with the valuation within the same class and the values established pursuant to subsection (1). The
7 department shall adopt rules for determining the assessed valuation of new, remodeled, or reclassified property
8 within the same class.
9 (3) The reappraisal of class three, class four, and class ten property is complete on December 31
10 of every second year of the reappraisal cycle.
11 (4) During the second year of each reappraisal cycle,:
12 (a) the department shall provide the revenue interim committee with a report, in accordance with 5-
13 11-210, of tax rates for the upcoming reappraisal cycle that will result in taxable value neutrality for each
14 property class; and
15 (b) the department and the office of public instruction shall provide the education interim budget
16 committee with a report, in accordance with 5-11-210, regarding the impacts of reappraisal on school funding,
17 including adjustments to the guaranteed tax base multipliers and calculations under 20-9-366 through 20-9-368
18 to mitigate property tax impacts.
19 (5) The department shall administer and supervise a program for the reappraisal of all taxable
20 property within class three, class four, and class ten. The department shall adopt a reappraisal plan by rule.
21 The reappraisal plan adopted must provide that all class three, class four, and class ten property in each county
22 is revalued by January 1 of the second year of the reappraisal cycle, effective for January 1 of the following
23 year, and each succeeding 2 years.
24 (6) (a) In completing the appraisal or adjustments under subsection (5), the department shall, as
25 provided in the reappraisal plan, conduct individual property inspections, building permit reviews, sales data
26 verification reviews, and electronic data reviews. The department may adopt new technologies for recognizing
27 changes to property.
28 (b) The department shall conduct a field inspection of a sufficient number of taxable properties to ****
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1 meet the requirements of subsection (5).
2 (7) (a) In each notice of reappraisal sent to a taxpayer, the department, with the support of the
3 department of administration, shall provide to the taxpayer information on:
4 (i) the consumer price index adjusted for population and the average annual growth rate of
5 Montana personal income; and
6 (ii) the estimated annualized change in property taxes levied over the previous 10 years by the
7 state, county, and any incorporated cities or towns within the county and local school average mills by county.
8 (b) In every even-numbered year, the department shall publish in a newspaper of general
9 circulation in each county the information required pursuant to subsection (7)(a) by the second Monday in
10 October."
11
12 Section 15-10-420, MCA, is amended to read:
13 "15-10-420. (1) (a) Subject to the provisions of this section, a
14 governmental entity that is authorized to impose mills may impose a mill levy sufficient to generate the amount
15 of property taxes actually assessed in the prior year plus one-half of the average rate of inflation for the prior 3
16 years. The maximum number of mills that a governmental entity may impose is established by calculating the
17 number of mills required to generate the amount of property tax actually assessed in the governmental unit in
18 the prior year based on the current year taxable value, less the current year's newly taxable value, plus one-half
19 of the average rate of inflation for the prior 3 years.
20 (b) A governmental entity that does not impose the maximum number of mills authorized under
21 subsection (1)(a) may carry forward the authority to impose the number of mills equal to the difference between
22 the actual number of mills imposed and the maximum number of mills authorized to be imposed. The mill
23 authority carried forward may be imposed in a subsequent tax year.
24 (c) For the purposes of subsection (1)(a), the department shall calculate one-half of the average
25 rate of inflation for the prior 3 years by using the consumer price index, U.S. city average, all urban consumers,
26 using the 1982-84 base of 100, as published by the bureau of labor statistics of the United States department of
27 labor.
28 (2) A governmental entity may apply the levy calculated pursuant to subsection (1)(a) plus any ****
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1 additional levies authorized by the voters, as provided in 15-10-425, to all property in the governmental unit,
2 including newly taxable property.
3 (3) (a) For purposes of this section, newly taxable property includes:
4 (i) annexation of real property and improvements into a taxing unit;
5 (ii) construction, expansion, or remodeling of improvements;
6 (iii) transfer of property into a taxing unit;
7 (iv) subdivision of real property; and
8 (v) transfer of property from tax-exempt to taxable status.
9 (b) Newly taxable property does not include an increase in value that arises because of an
10 increase in the incremental value within a tax increment financing district.
11 (4) (a) For the purposes of subsection (1), the taxable value of newly taxable property includes the
12 release of taxable value from the incremental taxable value of a tax increment financing district because of:
13 (i) a change in the boundary of a tax increment financing district;
14 (ii) an increase in the base value of the tax increment financing district pursuant to 7-15-4287; or
15 (iii) the termination of a tax increment financing district.
16 (b) If a tax increment financing district terminates prior to the certification of taxable values as
17 required in 15-10-202, the increment value is reported as newly taxable property in the year in which the tax
18 increment financing district terminates. If a tax increment financing district terminates after the certification of
19 taxable values as required in 15-10-202, the increment value is reported as newly taxable property in the
20 following tax year.
21 (c) For the purpose of subsection (3)(a)(ii), the value of newly taxable class four property that was
22 constructed, expanded, or remodeled property since the completion of the last reappraisal cycle is the current
23 year market value of that property less the previous year market value of that property.
24 (d) For the purpose of subsection (3)(a)(iv), the subdivision of real property includes the first sale
25 of real property that results in the property being taxable as class four property under 15-6-134 or as
26 nonqualified agricultural land as described in 15-6-133(1)(c).
27 (5) Subject to subsection (8), subsection (1)(a) This section does not apply to:
28 (a) mills imposed under 15-10-109, 20-9-331, 20-9-333, 20-9-360, or 20-25-439; ****
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1 (a)(b) school district levies established in Title 20 or any other title of the Montana Code Annotated; or
2 (b)(c) a mill levy imposed for a newly created regional resource authority.
3 (6) For purposes of subsection (1)(a), taxes imposed do not include net or gross proceeds taxes
4 received under 15-6-131 and 15-6-132.
5 (7) In determining the maximum number of mills in subsection (1)(a), the governmental entity:
6 (a) may increase the number of mills to account for a decrease in reimbursements; and
7 (b) may not increase the number of mills to account for a loss of tax base because of legislative
8 action that is reimbursed under the provisions of 15-1-121(7).
9 (8) The department shall calculate, on a statewide basis, the number of mills to be imposed for
10 purposes of 15-10-109, 20-9-331, 20-9-333, 20-9-360, and 20-25-439. However, the number of mills calculated
11 by the department may not exceed the mill levy limits established in those sections. The mill calculation must
12 be established in tenths of mills. If the mill levy calculation does not result in an even tenth of a mill, then the
13 calculation must be rounded up to the nearest tenth of a mill.
14 (9)(8) (a) The provisions of subsection (1) do not prevent or restrict:
15 (i) a judgment levy under 2-9-316, 7-6-4015, or 7-7-2202;
16 (ii) a levy to repay taxes paid under protest as provided in 15-1-402;
17 (iii) an emergency levy authorized under 10-3-405, 20-9-168, or 20-15-326;
18 (iv) a levy for the support of a study commission under 7-3-184;
19 (v) a levy for the support of a newly established regional resource authority;
20 (vi) the portion that is the amount in excess of the base contribution of a governmental entity's
21 property tax levy for contributions for group benefits excluded under 2-9-212 or 2-18-703;
22 (vii) a levy for reimbursing a county for costs incurred in transferring property records to an
23 adjoining county under 7-2-2807 upon relocation of a county boundary;
24 (viii) a levy used to fund the sheriffs' retirement system under 19-7-404(3)(b); or
25 (ix) a governmental entity from levying mills for the support of an airport authority in existence prior
26 to May 7, 2019, regardless of the amount of the levy imposed for the support of the airport authority in the past.
27 The levy under this subsection (9)(a)(ix) (8)(a)(ix) is limited to the amount in the resolution creating the
28 authority. ****
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1 (b) A levy authorized under subsection (9)(a) (8)(a) may not be included in the amount of property
2 taxes actually assessed in a subsequent year.
3 (10)(9) A governmental entity may levy mills for the support of airports as authorized in 67-10-402, 67-
4 11-301, or 67-11-302 even though the governmental entity has not imposed a levy for the airport or the airport
5 authority in either of the previous 2 years and the airport or airport authority has not been appropriated
6 operating funds by a county or municipality during that time.
7 (11)(10)The department may adopt rules to implement this section. The rules may include a method for
8 calculating the percentage of change in valuation for purposes of determining the elimination of property, new
9 improvements, or newly taxable value in a governmental unit."
10
11 Section 20-9-306, MCA, is amended to read:
12 "20-9-306.
13 following definitions apply:
14 (1) "BASE" means base amount for school equity.
15 (2) "BASE aid" means:
16 (a) direct state aid for 44.7% of the basic entitlement and 44.7% of the total per-ANB entitlement
17 for the general fund budget of a district;
18 (b) subject to adjustment under 20-9-336, guaranteed tax base aid for an eligible district for any
19 amount up to 35.3% of the basic entitlement, up to 35.3% of the total per-ANB entitlement budgeted in the
20 general fund budget of a district, and 40% of the special education allowable cost payment;
21 (c) the total quality educator payment;
22 (d) the total at-risk student payment;
23 (e) the total Indian education for all payment;
24 (f) the total American Indian achievement gap payment;
25 (g) the total data-for-achievement payment; and
26 (h) the special education allowable cost payment.
27 (3) "BASE budget" means the minimum general fund budget of a district, which includes:
28 (a) subject to adjustment under 20-9-336, 80% of the basic entitlement, and 80% of the total per- ****
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1 ANB entitlement, ;
2 (b) 100% of the following payments:
3 (i) the total quality educator payment, 100% of ;
4 (ii) the total at-risk student payment, 100% of ;
5 (iii) the total Indian education for all payment, 100% of ;
6 (iv) the total American Indian achievement gap payment, 100% of ; and
7 (v) the total data-for-achievement payment, ; and
8 (c) 140% of the special education allowable cost payment.
9 (4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which
10 may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366
11 through 20-9-369.
12 (5) "BASE funding program" means the state program for the equitable distribution of the state's
13 share of the cost of Montana's basic system of public elementary schools and high schools, through county
14 equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in
15 support of the BASE budgets of districts and special education allowable cost payments as provided in 20-9-
16 321.
17 (6) "Basic entitlement" means:
18 (a) for each high school district:
19 (i) $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
20 with an ANB of 800 or fewer; and
21 (ii) $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
22 with an ANB of more than 800, plus $17,175 for fiscal year 2024 and $17,690 for each succeeding fiscal year
23 for each additional 80 ANB over 800;
24 (b) for each elementary school district or K-12 district elementary program without an approved
25 and accredited junior high school, 7th and 8th grade program, or middle school:
26 (i) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
27 K-12 district elementary programs with an ANB of 250 or fewer; and
28 (ii) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or ****
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1 K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
2 for each succeeding fiscal year for each additional 25 ANB over 250;
3 (c) for each elementary school district or K-12 district elementary program with an approved and
4 accredited junior high school, 7th and 8th grade program, or middle school:
5 (i) for the district's kindergarten through grade 6 elementary program:
6 (A) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
7 K-12 district elementary programs with an ANB of 250 or fewer; and
8 (B) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
9 K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
10 for each succeeding fiscal year for each additional 25 ANB over 250; and
11 (ii) for the district's approved and accredited junior high school, 7th and 8th grade programs, or
12 middle school:
13 (A) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
14 or K-12 district elementary programs with combined grades 7 and 8 with an ANB of 450 or fewer; and
15 (B) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
16 or K-12 district elementary programs with combined grades 7 and 8 with an ANB of more than 450, plus $5,724
17 for fiscal year 2024 and $5,896 for each succeeding fiscal year for each additional 45 ANB over 450.
18 (7) "Budget unit" means the unit for which the ANB of a district is calculated separately pursuant to
19 20-9-311.
20 (8) "Direct state aid" means 44.7% of the basic entitlement and 44.7% of the total per-ANB
21 entitlement for the general fund budget of a district and funded with state and county equalization aid.
22 (9) "Maximum general fund budget" means a district's general fund budget amount calculated from
23 the basic entitlement for the district, the total per-ANB entitlement for the district, the total quality educator
24 payment, the total at-risk student payment, the total Indian education for all payment, the total American Indian
25 achievement gap payment, the total data-for-achievement payment, and the greater of the district's special
26 education allowable cost payment multiplied by:
27 (a) 175%; or
28 (b) the ratio, expressed as a percentage, of the district's special education allowable cost ****
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1 expenditures to the district's special education allowable cost payment for the fiscal year that is 2 years
2 previous, with a maximum allowable ratio of 200%.
3 (10) "Over-BASE budget levy" means the district levy in support of any general fund amount
4 budgeted that is above the BASE budget and within the general fund budget limits established in 20-9-308 and
5 calculated as provided in 20-9-141.
6 (11) "Total American Indian achievement gap payment" means the payment resulting from
7 multiplying $235 for fiscal year 2024 and $242 for each succeeding fiscal year times the number of American
8 Indian students enrolled in the district as provided in 20-9-330.
9 (12) "Total at-risk student payment" means the payment resulting from the distribution of any funds
10 appropriated for the purposes of 20-9-328.
11 (13) "Total data-for-achievement payment" means the payment provided in 20-9-325 resulting from
12 multiplying $22.89 for fiscal year 2024 and $23.58 for each succeeding fiscal year by the district's ANB
13 calculated in accordance with 20-9-311.
14 (14) "Total Indian education for all payment" means the payment resulting from multiplying $23.91
15 for fiscal year 2024 and $24.63 for each succeeding fiscal year times the ANB of the district or $100 for each
16 district, whichever is greater, as provided for in 20-9-329.
17 (15) "Total per-ANB entitlement" means the district entitlement resulting from the following
18 calculations and using either the current year ANB or the 3-year ANB provided for in 20-9-311:
19 (a) for a high school district or a K-12 district high school program, a maximum rate of $7,840 for
20 fiscal year 2024 and $8,075 for each succeeding fiscal year for the first ANB, decreased at the rate of 50 cents
21 per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving
22 the same amount of entitlement as the 800th ANB;
23 (b) for an elementary school district or a K-12 district elementary program without an approved and
24 accredited junior high school, 7th and 8th grade program, or middle school, a maximum rate of $6,123 for fiscal
25 year 2024 and $6,307 for each succeeding fiscal year for the first ANB, decreased at the rate of 20 cents per
26 ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving
27 the same amount of entitlement as the 1,000th ANB; and
28 (c) for an elementary school district or a K-12 district elementary program with an approved and ****
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1 accredited junior high school, 7th and 8th grade program, or middle school, the sum of:
2 (i) a maximum rate of $6,123 for fiscal year 2024 and $6,307 for each succeeding fiscal year for
3 the first ANB for kindergarten through grade 6, decreased at the rate of 20 cents per ANB for each additional
4 ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the
5 1,000th ANB; and
6 (ii) a maximum rate of $7,840 for fiscal year 2024 and $8,075 for each succeeding fiscal year for
7 the first ANB for grades 7 and 8, decreased at the rate of 50 cents per ANB for each additional ANB for grades
8 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the
9 800th ANB.
10 (16) "Total quality educator payment" means the payment resulting from multiplying $3,566 for fiscal
11 year 2024 and $3,673 for each succeeding fiscal year by the sum of:
12 (a) the number of full-time equivalent educators as provided in 20-9-327; and
13 (b) as provided in 20-9-324, for a school district meeting the legislative goal for competitive base
14 pay of teachers, the number of full-time equivalent teachers that were in the first 3 years of the teacher's
15 teaching career in the previous year.
16 (17) "Total special education allocation" means the state payment distributed pursuant to 20-9-321
17 that is the greater of the amount resulting from multiplying $293.74 for fiscal year 2024 and $302.55 for each
18 succeeding fiscal year by the statewide current year ANB or the amount of the previous year's total special
19 education allocation."
20
21 Section 20-9-331, MCA, is amended to read:
22 "20-9-331.
23 (1) Subject to 15-10-420, the The county commissioners
24 of each county shall levy an annual basic county tax of 33 mills on the dollar of the taxable value of all taxable
25 property within the county, except for property subject to a tax or fee under 61-3-321(2) or (3), 61-3-529, 61-3-
26 537, 61-3-562, 61-3-570, and 67-3-204, for the purposes of elementary equalization and state BASE funding
27 program support. The revenue collected from this levy must be apportioned to the support of the elementary
28 BASE funding programs of the school districts in the county and to the school equalization and property tax ****
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1 reduction account established in 20-9-336 in the following manner:
2 (a) In order to determine the amount of revenue raised by this levy that is retained by the county,
3 the sum of the estimated revenue identified in subsection (2) must be subtracted from the total of the BASE
4 funding programs of all elementary districts of the county.
5 (b) If the basic levy and other revenue prescribed by this section produce more revenue than is
6 required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to
7 the department of revenue, as provided in 15-1-504, for deposit to the state general fund immediately upon
8 occurrence of a surplus balance and each subsequent month, with any final remittance due no later than June
9 20 of the fiscal year for which the levy has been set.
10 (2) The revenue realized from the county's portion of the levy prescribed by this section and the
11 revenue from the following sources must be used for the equalization of the elementary BASE funding program
12 of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county
13 treasurer in accordance with 20-9-212(1):
14 (a) the portion of the federal Taylor Grazing Act funds designated for the elementary county
15 equalization fund under the provisions of 17-3-222;
16 (b) the portion of the federal flood control act funds distributed to a county and designated for
17 expenditure for the benefit of the county common schools under the provisions of 17-3-232;
18 (c) all money paid into the county treasury as a result of fines for violations of law, except money
19 paid to a justice's court, and the use of which is not otherwise specified by law;
20 (d) any money remaining at the end of the immediately preceding school fiscal year in the county
21 treasurer's accounts for the various sources of revenue established or referred to in this section;
22 (e) any federal or state money distributed to the county as payment in lieu of property taxation,
23 including federal forest reserve funds allocated under the provisions of 17-3-213;
24 (f) gross proceeds taxes from coal under 15-23-703; and
25 (g) oil and natural gas production taxes."
26
27 Section 20-9-333, MCA, is amended to read:
28 "20-9-333. ****
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1
2 commissioners of each county shall levy an annual basic county tax of 22 mills on the dollar of the taxable
3 value of all taxable property within the county, except for property subject to a tax or fee under 61-3-321(2) or
4 (3), 61-3-529, 61-3-537, 61-3-562, 61-3-570, and 67-3-204, for the purposes of high school equalization and
5 state BASE funding program support. The revenue collected from this levy must be apportioned to the support
6 of the BASE funding programs of high school districts in the county and to the school equalization and property
7 tax reduction account established in 20-9-336 in the following manner:
8 (a) In order to determine the amount of revenue raised by this levy that is retained by the county,
9 the sum of the estimated revenue identified in subsection (2) must be subtracted from the sum of the county's
10 high school tuition obligation and the total of the BASE funding programs of all high school districts of the
11 county.
12 (b) If the basic levy and other revenue prescribed by this section produce more revenue than is
13 required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to
14 the department of revenue, as provided in 15-1-504, for deposit to the state general fund immediately upon
15 occurrence of a surplus balance and each subsequent month, with any final remittance due no later than June
16 20 of the fiscal year for which the levy has been set.
17 (2) The revenue realized from the county's portion of the levy prescribed in this section and the
18 revenue from the following sources must be used for the equalization of the high school BASE funding program
19 of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county
20 treasurer in accordance with 20-9-212(1):
21 (a) any money remaining at the end of the immediately preceding school fiscal year in the county
22 treasurer's accounts for the various sources of revenue established in this section;
23 (b) any federal or state money distributed to the county as payment in lieu of property taxation,
24 including federal forest reserve funds allocated under the provisions of 17-3-213;
25 (c) gross proceeds taxes from coal under 15-23-703; and
26 (d) oil and natural gas production taxes."
27
28 Section 20-9-336, MCA, is amended to read: ****
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1 "20-9-336. (1) There is a school
2 equalization and property tax reduction account in the state special revenue fund. Contingent on appropriation
3 by the legislature, money in the account is for distribution to school districts as the second source of funding for
4 state equalization aid as provided in 20-9-343. At fiscal yearend, any fund balance in the account exceeding
5 what was appropriated must be transferred to the guarantee account established in 20-9-622.
6 (2) The account receives revenue as described in 20-9-331, 20-9-333, and 20-9-360.
7 (3) (a) Beginning in fiscal year 2025 2027, each December the superintendent of public instruction
8 shall forecast the amount of revenue the account will receive in that fiscal year by dividing the sum of the
9 taxable value of all property in the state reported by the department of revenue pursuant to 20-9-369 by 1,000
10 to determine a statewide value mill and then multiplying that amount by 95 mills, or the number of mills
11 calculated by the department of revenue under 15-10-420(8) for the applicable fiscal year the total number of
12 mills specified in 20-9-331, 20-9-333, and 20-9-360.
13 (b) If the forecasted amount in subsection (3)(a) differs from the amount determined through the
14 same calculation in the prior fiscal year by $2 million or more and is:
15 (a) less by an amount greater than $2 million, then the superintendent shall:
16 (i) decrease the multiplier used to calculate the statewide elementary and high school guaranteed
17 tax base ratios used for funding BASE budgets under 20-9-366 to the nearest whole number determined by the
18 superintendent to result in a decrease in the amount of guaranteed tax base aid distributed to eligible school
19 districts equal to 85% of the decrease in the calculated amount between the 2 years; and
20 (ii) decrease the multiplier used to calculate the statewide elementary and high school mill value
21 per ANB for school retirement guaranteed tax base purposes under 20-9-366 to the nearest whole number
22 determined by the superintendent to result in a decrease in the amount of retirement guaranteed tax base aid
23 distributed to eligible school districts equal to 15% of the decrease in the calculated amount between the 2
24 years;.
25 (b) more, then the superintendent shall increase the multipliers used in the guaranteed tax base
26 formulas under 20-9-366 and in the formula for school major maintenance aid under 20-9-525 to the nearest
27 whole number by an amount calculated by the superintendent to result in an increase in the amount of
28 guaranteed tax base aid and school major maintenance aid distributed to eligible counties and school districts ****
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1 equal to 55% of the increase in the calculated amount between the 2 years in the following order, with any
2 amount exceeding the caps under subsections (3)(b)(i) through (3)(b)(iii) flowing to the next mechanism:
3 (i) first, the multiplier used in calculating the statewide mill value per elementary and high school
4 ANB for retirement purposes, not to exceed 305%;
5 (ii) second, the multiplier used in calculating the amount of state school major maintenance aid
6 support for each dollar of local effort, not to exceed 365%; and
7 (iii) third, the multiplier used in calculating the facility guaranteed mill value per ANB for school
8 facility entitlement guaranteed tax base purposes, not to exceed 300%.
9 (c) If the forecasted amount in subsection (3)(a) is greater than the amount determined through
10 the same calculation in the prior fiscal year by more than 105%, the superintendent, using the forecasted
11 amount in excess of 105% of the prior year, shall:
12 (i) first increase the multiplier used to calculate statewide mill value per elementary and high
13 school ANB for retirement purposes under 20-9-366, not to exceed 305%, to the nearest whole number
14 determined by the superintendent to result in an increase in the amount of guaranteed tax base aid distributed
15 to eligible counties as close as mathematically possible to the excess amount determined in subsection (3)(c);
16 and
17 (ii) if there is an excess amount remaining after the 305% cap is hit under subsection (3)(c)(i),
18 then:
19 (A) the superintendent shall increase the percentages of the basic and per-ANB entitlements in 20-
20 9-306(2)(b) and (3)(a) by whole numbers not to exceed 45.3% and 90% respectively, then the multiplier used to
21 calculate the statewide elementary and high school guaranteed tax base ratios used for funding BASE budgets
22 under 20-9-366 by whole numbers in a manner determined by the superintendent to result in an increase in the
23 amount of guaranteed tax base aid distributed to eligible districts as close as mathematically possible to the
24 excess amount remaining without an increase in the amount of BASE property taxes on a statewide basis; and
25 (B) in making the calculations under subsection (3)(c)(ii)(A) and in calculating the guaranteed tax
26 base aid ratios under 20-9-366 for the ensuing school fiscal year, the superintendent shall utilize a GTBA
27 budget area for the prior year based on the adjusted percentages of the basic and per-ANB entitlements.
28 (4) (a) The adjustments to the multipliers and percentages under subsection (3) are applicable to ****
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1 state equalization aid distributions in the fiscal year following the adjustment.
2 (b) Adjustments to the multipliers and percentages made under subsection (3) remain in effect in
3 subsequent years unless further changed under 20-9-366 or subsection (3) of this section or as otherwise
4 provided by law."
5
6 Section 20-9-360, MCA, is amended to read:
7 "20-9-360. Subject to 15-10-420, there There is a levy of 40 mills
8 imposed by the county commissioners of each county on all taxable property within the state, except property
9 for which a tax or fee is required under 61-3-321(2) or (3), 61-3-529, 61-3-537, 61-3-562, 61-3-570, and 67-3-
10 204. Proceeds of the levy must be remitted to the department of revenue, as provided in 15-1-504, and must be
11 deposited to the credit of the school equalization and property tax reduction account established in 20-9-336 for
12 state equalization aid to the public schools of Montana."
13
14 Section 20-9-366, MCA, is amended to read:
15 "20-9-366.
16 20-9-371, the following definitions apply:
17 (1) "County retirement mill value per elementary ANB" or "county retirement mill value per high
18 school ANB" means the sum of the taxable valuation in the previous year of all property in the county divided by
19 1,000, with the quotient divided by the total county elementary ANB count or the total county high school ANB
20 count used to calculate the elementary school districts' and high school districts' prior year total per-ANB
21 entitlement amounts.
22 (2) (a) "District guaranteed tax base ratio" for guaranteed tax base funding for the BASE budget of
23 an eligible district means the taxable valuation in the previous year of all property in the district, except for
24 property value disregarded because of protested taxes under 15-1-409(2) or property subject to the creation of
25 a new school district under 20-6-326, divided by the district's prior year GTBA budget area.
26 (b) "District mill value per ANB", for school facility entitlement purposes, means the taxable
27 valuation in the previous year of all property in the district, except for property subject to the creation of a new
28 school district under 20-6-326, divided by 1,000, with the quotient divided by the ANB count of the district used ****
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1 to calculate the district's prior year total per-ANB entitlement amount.
2 (3) "Facility guaranteed mill value per ANB", for school facility entitlement guaranteed tax base
3 purposes, means, subject to adjustment under 20-9-336, the sum of the taxable valuation in the previous year
4 of all property in the state, multiplied by 140% and divided by 1,000, with the quotient divided by the total state
5 elementary ANB count or the total state high school ANB count used to calculate the elementary school
6 districts' and high school districts' prior year total per-ANB entitlement amounts.
7 (4) "Guaranteed tax base aid budget area" or "GTBA budget area" means the portion of a district's
8 BASE budget after the following payments are subtracted:
9 (a) direct state aid;
10 (b) the total data-for-achievement payment;
11 (c) the total quality educator payment;
12 (d) the total at-risk student payment;
13 (e) the total Indian education for all payment;
14 (f) the total American Indian achievement gap payment; and
15 (g) the state special education allowable cost payment.
16 (5) (a) "Statewide elementary guaranteed tax base ratio" or "statewide high school guaranteed tax
17 base ratio", for guaranteed tax base funding for the BASE budget of an eligible district, means, subject to
18 adjustment under 20-9-336, the sum of the taxable valuation in the previous year of all property in the state,
19 multiplied by 254% for fiscal year 2024 and by 259% for fiscal year 2025 300% for fiscal year 2026 and by
20 262% for fiscal year 2027 and each succeeding fiscal year and divided by the prior year statewide GTBA
21 budget area for the state elementary school districts or the state high school districts. For fiscal year 2024 and
22 subsequent fiscal years, the superintendent of public instruction shall increase the multiplier, not to exceed
23 262%, in this subsection (5)(a) as follows:
24 (i) for fiscal years 2024 through 2031, if the revenue transferred to the state general fund pursuant
25 to 16-12-111 in the prior fiscal year is at least $1 million more than the revenue transferred in the fiscal year 2
26 years prior, then:
27 (A) multiply the amount of increased revenue transferred to the state general fund pursuant to 16-
28 12-111 in the prior fiscal year above the amount of revenue transferred in the fiscal year 2 years prior by 0.25, ****
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1 divide the resulting product by $500,000, and round to the nearest whole number; and
2 (B) add the number derived in subsection (5)(a)(i)(A) as a percentage point increase to the
3 multiplier used for the prior fiscal year;
4 (ii) for fiscal years 2024 through 2031, if the revenue transferred to the state general fund pursuant
5 to 16-12-111 in the prior fiscal year is less than $1 million more than the revenue transferred in the fiscal year 2
6 years prior, then the multiplier is equal to the multiplier used for the prior fiscal year;
7 (iii) for fiscal years 2032 and subsequent fiscal years, the multiplier is equal to the multiplier used
8 for fiscal year 2031; and
9 (iv) for all multiplier increases under this subsection (5)(a), the calculations are made in the year
10 prior to the year in which the increase to the multiplier takes effect and impacts distribution of guaranteed tax
11 base aid.
12 (b) "Statewide mill value per elementary ANB" or "statewide mill value per high school ANB", for
13 school retirement guaranteed tax base purposes, means, subject to adjustment under 20-9-336, the sum of the
14 taxable valuation in the previous year of all property in the state, multiplied by 189% 210% for fiscal year 2026
15 and 189% for fiscal year 2027 and each succeeding fiscal year and divided by 1,000, with the quotient divided
16 by the total state elementary ANB count or the total state high school ANB amount used to calculate the
17 elementary school districts' and high school districts' prior year total per-ANB entitlement amounts."
18
19 Section 20-9-367, MCA, is amended to read:
20 "20-9-367.
21 (1) If the district guaranteed tax base ratio of an elementary or high school district is less than
22 the corresponding statewide elementary or high school guaranteed tax base ratio, the district may receive
23 guaranteed tax base aid based on the number of mills levied in the district in support of up to 35.3% of the
24 basic entitlement, up to 35.3% of the total per-ANB entitlement, and up to 40% of the special education
25 allowable cost payment budgeted within the general fund budget the district's GTBA budget area.
26 (2) If the county retirement mill value per elementary ANB or the county retirement mill value per
27 high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB,
28 the county may receive guaranteed tax base aid based on the number of mills levied in the county in support of ****
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1 the retirement fund budgets of the respective elementary or high school districts in the county.
2 (3) For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the
3 district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB
4 or statewide mill value per high school ANB, the district may receive debt service assistance in the form of a
5 state advance or reimbursement for school facilities in support of the debt service fund."
6
7 Section 20-9-368, MCA, is amended to read:
8 "20-9-368. (1) The amount of guaranteed tax base aid per
9 ANB that a county may receive in support of the retirement fund budgets of the elementary school districts in
10 the county is the difference between the county mill value per elementary ANB and the statewide mill value per
11 elementary ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the
12 elementary districts in the county.
13 (2) The amount of guaranteed tax base aid per ANB that a county may receive in support of the
14 retirement fund budgets of the high school districts in the county is the difference between the county mill value
15 per high school ANB and the statewide mill value per high school ANB, multiplied by the number of mills levied
16 in support of the retirement fund budgets for the high school districts in the county.
17 (3) The amount of guaranteed tax base aid that a district may receive in support of up to 35.3% of
18 the basic entitlement, up to 35.3% of the total per-ANB entitlement budgeted within the general fund budget,
19 and up to 40% of the special education payment the district's GTBA budget area is calculated in the following
20 manner:
21 (a) multiply the sum of the district's prior year GTBA budget area by the corresponding statewide
22 guaranteed tax base ratio;
23 (b) subtract the prior year taxable valuation of the district from the product obtained in subsection
24 (3)(a); and
25 (c) divide the remainder by 1,000 to determine the equivalent to the dollar amount of guaranteed
26 tax base aid for each mill levied.
27 (4) Guaranteed tax base aid provided to any county or district under this section is earmarked to
28 finance the fund or portion of the fund for which it is provided. If a county or district receives more guaranteed ****
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1 tax base aid than it is entitled to, the excess must be returned to the state as required by 20-9-344."
2
3 Section 20-9-404, MCA, is amended to read:
4 "20-9-404. (1) The trustees of a school district may
5 enter into a contract with the trustees of any school district within the county, with any school district in an
6 adjoining county, with the governing body of another political subdivision within the county in which the school
7 district is located, or with the governing body of a political subdivision of a county adjoining the school district to
8 provide for the joint construction of a facility upon terms and conditions mutually agreed upon between the
9 districts.
10 (2) The trustees of any district executing a contract in accordance with this section may, subject to
11 15-10-420, levy taxes and issue bonds for the purpose of constructing the facilities authorized by this section."
12
13 Section 20-9-525, MCA, is amended to read:
14 "20-9-525. (1) There is a school major
15 maintenance aid account in the state special revenue fund provided for in 17-2-102.
16 (2) The purpose of the account is to provide, contingent on appropriation from the legislature,
17 funding for school major maintenance aid as provided in subsection (3) for school facility projects, including the
18 payment of principal and interest on obligations issued pursuant to 20-9-471 for school facility projects, that
19 support a basic system of free quality public elementary and secondary schools under 20-9-309, including but
20 not limited to:
21 (a) improvements to school and student safety and security as described in 20-9-236(1); and
22 (b) projects designed to produce operational efficiencies such as utility savings, reduced future
23 maintenance costs, improved utilization of staff, and enhanced learning environments for students, including
24 but not limited to projects addressing:
25 (i) roofing systems;
26 (ii) heating, air-conditioning, and ventilation systems;
27 (iii) energy-efficient window and door systems and insulation;
28 (iv) plumbing systems; ****
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1 (v) electrical systems and lighting systems;
2 (vi) information technology infrastructure, including internet connectivity both within and to the
3 school facility; and
4 (vii) other critical repairs to an existing school facility or facilities.
5 (3) (a) In any year in which the legislature has appropriated funds for distribution from the school
6 major maintenance aid account, the superintendent of public instruction shall administer the distribution of
7 school major maintenance aid from the school major maintenance aid account for deposit in the subfund of the
8 building reserve fund provided for in 20-9-502(3)(e). Subject to proration under subsection (5) of this section,
9 aid must be annually distributed no later than the last working day of May to a school district imposing a levy
10 pursuant to 20-9-502(3) in the current school fiscal year, with the amount of state support per dollar of local
11 effort of the applicable elementary and high school program of each district determined as follows:
12 (i) using the taxable valuation most recently determined by the department of revenue under 20-9-
13 369:
14 (A) divide the total statewide taxable valuation by the statewide total of school major maintenance
15 amounts and, subject to adjustment under 20-9-336, multiply the result by 187%;
16 (B) multiply the result determined under subsection (3)(a)(i)(A) by the district's school major
17 maintenance amount;
18 (C) subtract the district's taxable valuation from the amount determined under subsection
19 (3)(a)(i)(B); and
20 (D) divide the amount determined under subsection (3)(a)(i)(C) by 1,000;
21 (ii) determine the greater of the amount determined in subsection (3)(a)(i) or 18% of the district's
22 mill value;
23 (iii) multiply the result determined under subsection (3)(a)(ii) by the district's school major
24 maintenance amount, then divide the product by the sum of the result determined under subsection (3)(a)(ii)
25 and the district's mill value; and
26 (iv) divide the result determined under subsection (3)(a)(iii) by the difference resulting from
27 subtracting the result determined under subsection (3)(a)(iii) from the district's school major maintenance
28 amount. ****
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1 (b) For a district with an adopted general fund budget in the prior year greater than or equal to
2 97% of the district's general fund maximum budget in the prior year, the amount determined in subsection
3 (3)(a)(iv) rounded to the nearest cent is the amount of school major maintenance aid per dollar of local effort,
4 not to exceed an amount that would result in the state aid composing more than 80% of the district's school
5 major maintenance amount.
6 (c) For a district with an adopted general fund budget in the prior year less than 97% of the
7 district's maximum budget in the prior year, multiply the amount determined in subsection (3)(a)(iv) by the ratio
8 of the district's adopted general fund budget in the prior year to the district's maximum general fund budget in
9 the prior year. The result, rounded to the nearest cent, is the amount of state school major maintenance aid per
10 dollar of local effort, not to exceed an amount that would result in the state aid composing more than 80% of the
11 district's school major maintenance amount.
12 (4) Using the taxable valuation most recently determined by the department of revenue under 20-
13 9-369, the superintendent shall provide school districts with a preliminary estimated amount of state school
14 major maintenance aid per dollar of local effort for the ensuing school year no later than March 1 and a final
15 amount for the current school year no later than July 31.
16 (5) If the appropriation from or the available funds in the school major maintenance aid account in
17 any school fiscal year are less than the amount for which school districts would otherwise qualify, the
18 superintendent of public instruction shall proportionally prorate the aid distributed to ensure that the distributions
19 do not exceed the appropriated or available funds.
20 (6) If in any fiscal year the amount of revenue in the school major maintenance aid account is
21 sufficient to fund school major maintenance aid without a proration reduction pursuant to subsection (5) and if in
22 that same fiscal year the amount of revenue available in the school facility and technology account established
23 in 20-9-516 will result in a proration reduction in debt service assistance pursuant to 20-9-346(2)(b) for that
24 fiscal year, the state treasurer shall transfer any excess funds in the school major maintenance aid account to
25 the school facility and technology account, not to exceed the amount required to avoid a proration reduction.
26 (7) For the purposes of this section, the following definitions apply:
27 (a) "Local effort" means an amount of money raised by levying no more than 10 mills pursuant to
28 20-9-502(3) and, provided that 10 mills have been levied, any additional amount of money deposited or ****
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1 transferred by trustees to the subfund pursuant to 20-9-502(3).
2 (b) "School major maintenance amount" means the sum of $15,000 and the product of $110
3 multiplied by the district's budgeted ANB for the prior fiscal year."
4
5 Section 20-9-533, MCA, is amended to read:
6 "20-9-533. (1) The trustees of a
7 district may establish a technology acquisition and depreciation fund for school district expenditures incurred
8 for:
9 (a) the purchase, rental, repair, and maintenance of technological equipment, including computers
10 and computer network access;
11 (b) cloud computing services for technology infrastructure, platform, software, network, storage,
12 security, data, database, test environment, curriculum, or desktop virtualization purposes, including any
13 subscription or any license-based or pay-per-use service that is accessed over the internet or other remote
14 network to meet the district's information technology and other needs; and
15 (c) associated technical training for school district personnel.
16 (2) Any expenditures from the technology acquisition and depreciation fund must be made in
17 accordance with the financial administration requirements for a budgeted fund pursuant to this title. The
18 trustees of a district shall fund the technology acquisition and depreciation fund with:
19 (a) the state money received under 20-9-534; and
20 (b) other local, state, private, and federal funds received for the purpose of funding technology or
21 technology-associated training.
22 (3) In depreciating the technological equipment of a school district for levies approved prior to July
23 1, 2013, the trustees may include in the district's budget, contingent upon voter approval of a levy under
24 subsection (6) and pursuant to the school budgeting requirements of this title, an amount each fiscal year that
25 does not exceed 20% of the original cost of any technological equipment, including computers and computer
26 network access, that is owned by the district. The amount budgeted pursuant to levies approved prior to July 1,
27 2013, may not, over time, exceed 150% of the original cost of the equipment.
28 (4) The annual revenue requirement for each district's technology acquisition and depreciation ****
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1 fund determined within the limitations of this section must be reported by the county superintendent of schools
2 to the board of county commissioners on or before the later of the first Tuesday in September or within 30
3 calendar days after receiving certified taxable values as the technology acquisition and depreciation fund levy
4 requirement for that district, and a levy must be made by the county commissioners in accordance with 20-9-
5 142.
6 (5) Any expenditure of technology acquisition and depreciation fund money must be within the
7 limitations of the district's final technology acquisition and depreciation fund budget and the school financial
8 administration provisions of this title.
9 (6) In addition to the funds received pursuant to subsection (2), the trustees of a school district
10 may submit a proposition to the qualified electors of the district to approve an additional levy to fund costs of
11 providing the technologies included in subsection (1). The election must be called and conducted in the manner
12 prescribed by this title for school elections and in the manner prescribed by 15-10-425. A technology levy
13 authorization approved after July 1, 2013, may not exceed 10 years.
14 (7) The technology proposition is approved if a majority of those electors voting at the election
15 approve the levy. Notwithstanding any other provision of law, the levy under subsection (6) is subject to 15-10-
16 420.
17 (8) A district whose qualified electors have previously approved a technology levy of perpetual
18 duration prior to July 1, 2013, may submit a proposition to the qualified electors on or after July 1, 2013, for an
19 increase in the amount of the levy to cover the costs of providing technologies under subsections (1)(b) and
20 (1)(c) or to seek relief from the obligation of tracking depreciation of equipment under a levy approved prior to
21 July 1, 2013. In seeking approval of the proposition, the district shall specify a proposed revised duration of the
22 underlying perpetual levy previously approved and a proposed duration for the proposed increase in the
23 amount of the levy, neither of which may exceed 10 years. If the proposition is approved by the qualified
24 electors, both the underlying levy previously approved for a perpetual duration and the increase in the amount
25 of the levy are subject to the revised durational limit specified on the ballot.
26 (9) The trustees of a district may not
27 fund to finance contributions to the teachers' retirement system, the public employees' retirement system, or the
28 federal social security system or for unemployment compensation insurance." ****
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1
2 Section 20-10-141, MCA, is amended to read:
3 "20-10-141. (1) The mileage rates in
4 subsection (2) for school transportation constitute the maximum reimbursement to districts for school
5 transportation from state and county sources of transportation revenue under the provisions of 20-10-145 and
6 20-10-146. These rates may not limit the amount that a district may budget in its transportation fund budget in
7 order to provide for the estimated and necessary cost of school transportation during the ensuing school fiscal
8 year. All bus miles traveled on bus routes approved by the county transportation committee are reimbursable.
9 Nonbus mileage is reimbursable for a vehicle driven by a bus driver to and from an overnight location of a
10 school bus when the location is more than 10 miles from the school. A district may approve additional bus or
11 nonbus miles within its own district or approved service area but may not claim reimbursement for the mileage.
12 Any vehicle, the operation of which is reimbursed for bus mileage under the rate provisions of this schedule,
13 must be a school bus, as defined by this title, driven by a qualified driver on a bus route approved by the county
14 transportation committee and the superintendent of public instruction.
15 (2) (a) The rate for each bus mile traveled must be determined in accordance with the following
16 schedule:
17 (i) 50 cents $1.00 for a school bus as defined in 20-10-101(5)(a)(ii);
18 (ii) 95 cents $1.90 for a school bus with a rated capacity of not more than 49 passenger seating
19 positions;
20 (iii) $1.15 $2.30 for a school bus with a rated capacity of 50 to 59 passenger seating positions;
21 (iv) $1.36 $2.72 for a school bus with a rated capacity of 60 to 69 passenger seating positions;
22 (v) $1.57 $3.14 for a school bus with a rated capacity of 70 to 79 passenger seating positions; and
23 (vi) $1.80 $3.60 for a school bus with 80 or more passenger seating positions.
24 (b) Nonbus mileage, as provided in subsection (1), must be reimbursed at a rate of 50 cents $1.00
25 a mile.
26 (3) The rated capacity is the number of passenger seating positions of a school bus as determined
27 under the policy adopted by the board of public education. If modification of a school bus to accommodate
28 pupils with disabilities reduces the rated capacity of the bus, the reimbursement to a district for pupil ****
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1 transportation is based on the rated capacity of the bus prior to modification.
2 (4) The number of pupils riding the school bus may not exceed the passenger seating positions of
3 the bus."
4
5 Section 20-10-144, MCA, is amended to read:
6 "20-10-144.
7 Before the second Monday of August, the county superintendent shall compute the revenue
8 available to finance the transportation fund budget of each district. The county superintendent shall compute
9 the revenue for each district on the following basis:
10 (1) The "schedule amount" of the budget expenditures that is derived from the rate schedules in
11 20-10-141 and 20-10-142 must be determined by adding the following amounts:
12 (a) the sum of the maximum reimbursable expenditures for all approved school bus routes
13 maintained by the district (to determine the maximum reimbursable expenditure, multiply the applicable rate for
14 each bus mile by the total number of miles to be traveled during the ensuing school fiscal year on each bus
15 route approved by the county transportation committee and maintained by the district); plus
16 (b) the total of all individual transportation per diem reimbursement rates for the district as
17 determined from the contracts submitted by the district multiplied by the number of pupil-instruction days
18 scheduled for the ensuing school attendance year; plus
19 (c) any estimated costs for supervised home study or supervised correspondence study for the
20 ensuing school fiscal year; plus
21 (d) the amount budgeted in the budget for the contingency amount permitted in 20-10-143, except
22 if the amount exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c) or $100, whichever is larger, the
23 contingency amount on the budget must be reduced to the limitation amount and used in this determination of
24 the schedule amount; plus
25 (e) any estimated costs for transporting a child out of district when the child has mandatory
26 approval to attend school in a district outside the district of residence.
27 (2) (a) The schedule amount determined in subsection (1) or the total transportation fund budget,
28 whichever is smaller, is divided by 2 4 and is used to determine the available state and county revenue to be ****
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1 budgeted on the following basis:
2 (i) one-half three-fourths is the budgeted state transportation reimbursement; and
3 (ii) one-half one-fourth is the budgeted county transportation fund reimbursement and must be
4 financed in the manner provided in 20-10-146.
5 (b) When the district has a sufficient amount of fund balance for reappropriation and other sources
6 of district revenue, as determined in subsection (3), to reduce the total district obligation for financing to zero,
7 any remaining amount of district revenue and fund balance reappropriated must be used to reduce the county
8 financing obligation in subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to
9 reduce the state financial obligation in subsection (2)(a)(i).
10 (c) The county revenue requirement for a joint district, after the application of any district money
11 under subsection (2)(b), must be prorated to each county incorporated by the joint district in the same
12 proportion as the ANB of the joint district is distributed by pupil residence in each county.
13 (3) The total of the money available for the reduction of property tax on the district for the
14 transportation fund must be determined by totaling:
15 (a) anticipated federal money received under the provisions of 20 U.S.C. 7701, et seq., or other
16 anticipated federal money received in lieu of that federal act;
17 (b) anticipated payments from other districts for providing school bus transportation services for
18 the district;
19 (c) anticipated payments from a parent or guardian for providing school bus transportation services
20 for a child;
21 (d) anticipated or reappropriated interest to be earned by the investment of transportation fund
22 cash in accordance with the provisions of 20-9-213(4);
23 (e) anticipated revenue from coal gross proceeds under 15-23-703;
24 (f) anticipated oil and natural gas production taxes;
25 (g) anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320
26 through 20-5-324;
27 (h) any other revenue anticipated by the trustees to be earned during the ensuing school fiscal
28 year that may be used to finance the transportation fund; and ****
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1 (i) any fund balance available for reappropriation as determined by subtracting the amount of the
2 end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school
3 fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating
4 reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and
5 is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund
6 budget.
7 (4) The district levy requirement for each district's transportation fund must be computed by:
8 (a) subtracting the schedule amount calculated in subsection (1) from the total preliminary
9 transportation budget amount; and
10 (b) subtracting the amount of money available to reduce the property tax on the district, as
11 determined in subsection (3), from the amount determined in subsection (4)(a).
12 (5) The transportation fund levy requirements determined in subsection (4) for each district must
13 be reported to the county commissioners on or before the later of the first Tuesday in September or within 30
14 calendar days after receiving certified taxable values by the county superintendent as the transportation fund
15 levy requirements for the district, and the levy must be made by the county commissioners in accordance with
16 20-9-142."
17
18 Section 20-10-145, MCA, is amended to read:
19 "20-10-145.
20 or individual transportation in accordance with this title, board of public education transportation policy, and
21 superintendent of public instruction transportation rules must receive a state reimbursement of its transportation
22 expenditures under the transportation reimbursement rate provisions of 20-10-141 and 20-10-142. The state
23 transportation reimbursement is one-half three-fourths of the reimbursement amounts established in 20-10-141
24 and 20-10-142 or one-half of the district's transportation fund budget, whichever is smaller, and must be
25 computed on the basis of the number of days the transportation services were actually rendered to transport
26 eligible transportees, as defined in 20-10-101, to or from school to participate in the minimum aggregate hours
27 of instruction required pursuant to 20-1-301. In determining the amount of the state transportation
28 reimbursement, an amount claimed by a district may not be considered for reimbursement unless the amount ****
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1 has been paid in the regular manner provided for the payment of other financial obligations of the district.
2 (2) Requests for the state transportation reimbursement must be made by each district
3 semiannually during the school fiscal year on the claim forms and procedure promulgated by the
4 superintendent of public instruction. The claims for state transportation reimbursements must be routed by the
5 district to the county superintendent, who after reviewing the claims shall send them to the superintendent of
6 public instruction. The superintendent of public instruction shall establish the validity and accuracy of the claims
7 for the state transportation reimbursements by determining compliance with this title, board of public education
8 transportation policy, and the transportation rules of the superintendent of public instruction. After making any
9 necessary adjustments to the claims, the superintendent of public instruction shall order a disbursement from
10 the state money appropriated by the legislature of the state of Montana for the state transportation
11 reimbursement.
12 (3) The superintendent of public instruction shall make the disbursement to each school district
13 according to the following schedule:
14 (a) By September 1 of each year, the superintendent of public instruction shall make a payment
15 equal to 50% of the state transportation reimbursement paid to the district in the previous school year.
16 (b) By March 31 of each year, the superintendent of public instruction shall make a payment to the
17 district equal to the approved amount of state reimbursement for first semester transportation claims less the
18 amount distributed to the district under subsection (3)(a).
19 (c) By June 30 of each year, the superintendent of public instruction shall make a payment to the
20 district to pay the balance of the approved amount due to the district for first and second semester
21 transportation.
22 (4) Unless authorized for payment to a school district investment account established under 20-9-
23 235, the payment of all the district's claims within one county must be made to the county treasurer of the
24 county, and the county superintendent shall apportion the payment in accordance with the apportionment order
25 supplied by the superintendent of public instruction.
26 (5) After adopting a budget amendment for the transportation fund in accordance with 20-9-161
27 through 20-9-166, the district shall send to the superintendent of public instruction a copy of each new or
28 amended individual transportation contract and each new or amended bus route form to which the budget ****
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1 amendment applies. State reimbursement for the additional obligations must be paid as provided in subsection
2 (1)."
3
4 Section 20-10-146, MCA, is amended to read:
5 "20-10-146. (1) The apportionment of the county
6 transportation reimbursement by the county superintendent for school bus transportation or individual
7 transportation that is actually rendered by a district in accordance with this title, board of public education
8 transportation policy, and the transportation rules of the superintendent of public instruction must be the same
9 as one-third the amount of the state transportation reimbursement payment, except that:
10 (a) if any cash was used to reduce the budgeted county transportation reimbursement under the
11 provisions of 20-10-144(2)(b), the annual apportionment is limited to the budget amount;
12 (b) when the county transportation reimbursement for a school bus has been prorated between
13 two or more counties because the school bus is conveying pupils of more than one district located in the
14 counties, the apportionment of the county transportation reimbursement must be adjusted to pay the amount
15 computed under the proration; and
16 (c) when county transportation reimbursement is required under the mandatory attendance
17 agreement provisions of 20-5-321.
18 (2) The county transportation net levy requirement for the financing of the county transportation
19 fund reimbursements to districts is computed by:
20 (a) totaling the net requirement for all districts of the county, including reimbursements to a special
21 education cooperative or prorated reimbursements to joint districts or reimbursements under the mandatory
22 attendance agreement provisions of 20-5-321;
23 (b) determining the sum of the money available to reduce the county transportation net levy
24 requirement by adding:
25 (i) anticipated money that may be realized in the county transportation fund during the ensuing
26 school fiscal year;
27 (ii) oil and natural gas production taxes;
28 (iii) coal gross proceeds taxes under 15-23-703; ****
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1 (iv) any fund balance available for reappropriation from the end-of-the-year fund balance in the
2 county transportation fund;
3 (v) federal forest reserve funds allocated under the provisions of 17-3-213; and
4 (vi) other revenue anticipated that may be realized in the county transportation fund during the
5 ensuing school fiscal year; and
6 (c) subtracting the money available, as determined in subsection (2)(b), to reduce the levy
7 requirement from the county transportation net levy requirement.
8 (3) The net levy requirement determined in subsection (2)(c) must be reported to the county
9 commissioners on or before the later of the first Tuesday in September or within 30 calendar days after
10 receiving certified taxable values by the county superintendent, and a levy must be set by the county
11 commissioners in accordance with 20-9-142.
12 (4) The county superintendent of each county shall submit a report of the revenue amounts used
13 to establish the levy requirements to the superintendent of public instruction on or before September 15. The
14 report must be completed on forms supplied by the superintendent of public instruction.
15 (5) The county superintendent shall apportion the county transportation reimbursement from the
16 proceeds of the county transportation fund. The county superintendent shall order the county treasurer to make
17 the apportionments in accordance with 20-9-212(2) and after the receipt of the semiannual state transportation
18 reimbursement payments."
19
20 Section 20-25-439, MCA, is amended to read:
21 "20-25-439. (1) Subject to 15-10-420, the The
22 boards of county commissioners of Cascade, Lewis and Clark, Missoula, Silver Bow, and Yellowstone Counties
23 shall in each calendar year levy a tax of 1 1/2 mills on the dollar value of all taxable property, real and personal,
24 located within the respective county.
25 (2) The funds from the mill levy must be deposited in the general fund and must be distributed for
26 vocational-technical education on the basis of budgets approved by the board of regents."
27
28 Section 90-6-403, MCA, is amended to read: ****
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1 "90-6-403.
2 (1) When an impact plan for a large-scale mineral development approved pursuant to 90-6-
3 307 identifies a jurisdictional revenue disparity, the board shall promptly notify the developer, all affected local
4 government units, and the department of revenue of the disparity. Except as provided in 90-6-404 and this
5 section, the increase in taxable valuation of the mineral development that occurs after the issuance and
6 validation of a permit under 82-4-335 is not subject to the usual application of county and school district
7 property tax mill levies. This increase in taxable valuation must be allocated to local government units as
8 provided in 90-6-404. The increase in taxable valuation allocated as provided in 90-6-404 is subject to 15-10-
9 420 and the application of property tax mill levies in the local government unit to which it is allocated. The
10 increase in taxable valuation allocated to the local government unit is considered newly taxable property in the
11 recipient local government unit as provided in 15-10-420.
12 (2) Subject to 15-10-420, the The total taxable valuation of a large-scale mineral development
13 remains subject to the statewide mill levies and basic county levies for elementary and high school BASE
14 funding programs as provided in 20-9-331 and 20-9-333.
15 (3) The provisions of subsection (1) remain in effect until the large-scale mineral development
16 ceases operations or until the existence of the jurisdictional revenue disparity ceases, as determined by the
17 board."
18
19 NEW SECTION. Section 20. [This act] is effective on passage and approval.
20
21 NEW SECTION. Section 21. [This act] applies to school district budgeting and funding
22 distributions for school fiscal years beginning on or after July 1, 2025.
23 - END -