Revenue and Transportation

ANNOUNCEMENTS

The committee has concluded its 2017-2018 interim work. The committee adopted a revenue estimate on Nov. 19.

Committee legislation is available on the Legislation page. Final reports are posted on the Committee Topics page for each study.

November 19, 2018 - Meeting Materials

Agenda
Minutes Log
Agency Oversight
- Administrative Rule Review
- Department of Revenue
  - Memo: 2019 Reappraisal Cycle Update and Taxable Value Neutral Tax Rate Calculation
  - Public comment: Montana Taxpayers Association
Revenue Estimating and Monitoring
- Legislative Fiscal Division materials
- Office of Budget and Program Planning materials
  - Governor's Budget Volume 2: Revenue Estimates
  - OBPP Presentation to the Revenue and Transportation Interim Committee
- Public comment
  - Montana Petroleum Association letter, Updated oil prices handout
  - Montana Taxpayers Association

Agenda
Minutes Log

HJ 22 Agricultural Property Study
- HJ 22: Agricultural Bills Overview
- LCag01: Provisional agricultural classification for fruit trees and vines
  - MAR Notice 42-2-956 (shows original version of ARM 42.20.683 and 2016 changes)
  - ARM 42.20.683
- LCag02: Revise irrigation cost deduction
- LCag03: Require agricultural property to be used primarily for agricultural purposes (drafted for 2015-2016 interim)
- LCag00: Simplification of 15-7-202
- HJ 22 Agricultural Property Taxation Study Draft Final Report (September 2018)
- Public comment
  - Letter from Schreibers and Wards
HJ 18: Tax Increment Financing Study
- HJ 18 Study of Tax Increment Financing Draft Final Report (September 2018)
- Public comment:
  - Letter from Lockwood School District to Yellowstone County Commissioners
  - Letter from Big Sky Economic Development to Lockwood School District
SJ 23: Centrally Assessed and Industrial Property Study
- SJ 23 Study of Taxation of Centrally Assessed and Utility Property Draft Final Report (September 2018)
Agency Oversight
- Administrative Rule Review
- Department of Revenue
  - Memo: Annual Report on Charitable Endowment Credit (Revised) -- Aaron McNay
  - Memo: Department of Revenue Major Case Update -- Dan Whyte
- Department of Transportation
  - BaRSAA Distribution Status
  - HB 92 Update on Construction Manager/General Contractor
- Montana Tax Appeal Board
  - Pending and Active Cases
Revenue Estimating and Monitoring
- FYE 2018 Budget Status Report -- Legislative Fiscal Division
- Memo: Comparison of State Tax Revenues with Estimate of Montana General Sales Tax -- Legislative Fiscal Division
- Analyzing Changes in Montana's General Fund Revenue Using A Shift-Share Analysis -- Legislative Fiscal Division
Other
- Memo: SB 261 Recommendations -- Legislative Fiscal Division
- Montana's Budget Stabilization Reserve slides - Legislative Fiscal Division
- Individual Income Tax Credit Analysis -- Legislative Fiscal Division
- Medical Marijuana Statistics as of July 31, 2018

Agenda
Minutes Log
- July 10, 2018
- July 11, 2018
HJ 22: Agricultural Property Study
HJ 18: Tax Increment Financing Study
- LCtif1: DOR and Working Group draft
  - HJ 18: TIF Taxable Value Data
- LCtif2: Remittance draft
- LCtif3: Personal property draft
- HJ 18 Study of Tax Increment Financing Draft Final Report
- Public comment
  - Montana Public Education Center
SJ 23: Centrally Assessed and Industrial Property Study
- SJ 23: Centrally Assessed Bill Drafts Overview
- Bill drafts: LCcald, LCca01, LCca02
- SJ 23 Study of Taxation of Centrally Assessed and Utility Property Draft Final Report
- Public comment
  - John Alke, Northwestern Energy
  - Montana Electric Cooperatives' Association
Agency Oversight
- Administrative Rule Review
- Department of Revenue
- Department of Transportation
  - BaRSAA Distribution Status
Revenue Estimating and Monitoring
- 2021 Biennium Outlook
- FY 2018 Status Report
Tax Cuts and Jobs Act: Montana Analysis
- Tax Cuts and Jobs Act State Impacts: Individual Income Tax
- Tax Cuts and Jobs Act State Impacts: Corporate Income Tax
- Memo: H.R. 1 2017 Part II, Section 11011 - Pass Through Deduction -- Jessica DeMarois and Tony Zammit, DOR
- Legal Opinion: Section 199A Qualified Business Income -- Jaret Coles
- Memo: H.R. 1 2017 Part II, Section 11011 - Pass Through Deduction -- Dan Whyte, DOR
- Memo: Federal Tax Reform Corporate Estimate Updated -- Rose Bender, DOR
- Federal Tax Reform for Individual Income Tax Estimated Revenue Impacts -- DOR
- Public Comment
  - Montana Budget and Policy Center
HB 473 Required Performance Audits
- Funding Montana's Highway Infrastructure
  - Funding Montana's Highway Infrastructure slide presentation
- An Examination of the Montana Department of Transportation's Maintenance Division
  - An Examination of the Montana Department of Transportation's Maintenance Division slide presentation
Member Topic: Oil and Natural Gas Production Tax
- Follow up from Board of Oil and Gas Conservation
Other
- Medical Marijuana June Statistics - DPHHS
- Property Tax Information for Legislators -- LFD (DRAFT)

Agenda
Minutes Log
- May 2, 2018
- May 3, 2018
HJ 22: Agricultural Property Study
- 2015-2016 Agricultural Valuation Bills Overview
- HJ 22: Ch. 543, L. 2005 Classification Changes
  - DOR overview of SB 296
- Ag Farmsite Value vs. Market Value-- Department of Revenue
- One Acre Homestead Analysis -- Department of Revenue
- Income Per Acre Analysis -- Department of Revenue
- Flathead vineyard and orchard owners recommendations and additional background materials:
- Public comment packet from vineyard and orchard owners
HJ 18: Tax Increment Financing Study
SJ 23: Centrally Assessed and Industrial Property Study
- SJ 23: Centrally Assessed and Industrial Property Appeal Procedures
- Overview of Intangible Personal Property Exemption
- Consideration of changing timeline for certifying taxable value
  - Montana Taxpayers Association handout
Agency Oversight
- Administrative Rule Review
- Department Of Revenue
  - Memo: Annual Report on Charitable Endowment Credit -- Aaron McNay
  - Memo: Biodiesel Blending and Storage Tax Credit -- Rose Bender
  - Memo: Annual Report on Student Scholarship Organization Credit-- Aaron McNay
  - Tax Processing Season 2018 Update
  - Memo: Department of Revenue Major Case Update -- Dan Whyte
  - Montana Lodging and Hospitality Association public comment
    - CBRE Hotels Montana AirBnb Insights
    - Press release
- Department of Transportation
  - Bridge and Road Safety and Accountability Account distributions
- Montana Tax Appeal Board
  - Active Cases
  - Scheduled Hearings
Revenue Estimating and Monitoring
- Memo: FY 2018 General Fund Revenue Update #5
Distribution of Oil and Natural Gas Production Tax Revenue
- Board of Oil and Gas Conservation Funds
  - BOGC Fund Balance
- Spreadsheet of oil and gas natural resource distribution tax revenue by county and city
- Board of Oil and Gas Considerations for Tax Rate Selection
- Richland County Commissioner Mitchell public comment
Other
- Proposed revised medical marijuana program rules

Agenda
Minutes Log
- March 13, 2018
- March 14, 2018
HJ 22: Agricultural Property Study
- HJ 22 Study: Montana History of Agricultural Classification and Valuation -- Megan Moore
HJ 18: Tax Increment Financing Study
- Performance Audit: Tax Increment Financing Administration and Impact-- Legislative Audit Division
- Slides: Tax Increment Financing Administration and Impact -- Legislative Audit Division
- Public comment
  - Montana League of Cities and Towns re: MSUB TIF report
  - Montana League of Cities & Towns brochure: Tax Increment in Montana
SJ 23: Centrally Assessed and Industrial Property Study
- Taxes Paid by Public Utility Customers -- Megan Moore
- Public comment
Agency Oversight
- Administrative Rule Review -- Jaret Coles
- Department Of Revenue
  - Property Assessment Division Office Closures
  - Tax Processing Season 2018 Update
  - Memo: Department of Revenue Major Case Update -- Dan Whyte, DOR
    - Public comment
      - Carbon County Commission re: DOR office closures
      - Montana Budget & Policy Center: Federal Tax Bill Creates Further State Budget Concerns
- Department of Transportation
  - Report on Biodiesel Refund and Dyed Fuel Enforcement
  - Stateline article: "Technology is Turning Wrong-Way Drivers Around"
- Montana Tax Appeal Board
  - Active Cases Update
Revenue Estimating and Monitoring
- FY 2018 Status Report -- Legislative Fiscal Division
Changing Economy and Impacts to the Long-Term Viability of Montana's Tax Structure
- Memo: State Comparison of General Fund Revenue and Gross State Product -- Stephanie Morrison, LFD
- General Fund Revenue Trends -- LFD
- Memo: Approximate Combined Taxes on $1 Million Sales by Selected Industries -- Stephanie Morrison
- Montana's Industry Sectors: Comparing Jobs, Personal Income, Gross State Product, and General Fund Revenue Share -- Stephanie Morrison and Sam Schaefer
  - General Fund Revenue by Industry Sector
- Memo: Montana Underreporting Income Tax Gap -- Aaron McNay, DOR
  - Tax Gap/Compliance Slides -- Department of Revenue
- Memo: Individual Income Tax Research Options -- Stephanie Morrison
- Corporate Income Tax Apportionment -- Megan Moore
- Memo: Implications of Changing Montana's Corporate Apportionment Formula -- Sam Schaefer, LFD
- Inflation Impacts -- LFD
- General Fund Revenue -- LFD
- General Fund Revenue Sources % Share -- LFD
Distribution of Oil and Natural Gas Production Tax Revenue
- Distribution of Oil and Natural Gas Production Tax Revenue -- Megan Moore
  - Distribution of Oil and Natural Gas Production Tax Revenue slides
- Oil and Natural Gas Production Taxes and School Funding 2011-2017 -- Pad McCracken, LSD
- Phillips County Oil & Gas Distribution spreadsheet
- Public comment
  - Richland County Oil Well Map
Medical Marijuana
- Medical Marijuana Act: Summary of Proposed and Adopted Rules -- Sue O'Connell, LSD
- Medical Marijuana: Registry Statistics -- Sue O'Connell
- Unofficial Compilation of Medical Marijuana Proposed and Adopted Administrative Rules
- Letter sent to Children, Family, Health, and Human Services Interim Committee
- Public comment
  - Montana Labs public comment
  - Montana Cannabis Information Association public comment

Agenda
Minutes Log
Agency Oversight
- Administrative Rule Review -- Jaret Coles
- Department of Revenue reports
  - Memo: Federal Tax Reform Impacts to the State's Budget -- Mike Kadas
  - Memo: State Impact of Federal Tax Proposals -- Dan Dodds
  - Memo: Federal Tax Reform Corporate Estimate -- Rose Bender
  - Memo: County Impact of US Mineral Royalties -- Mike Kadas
  - E-Market Company Example (HB 511 implementation)
  - Memo: Department of Revenue Major Case Update -- Dan Whyte
- Department of Transportation reports
  - Working Capital Status Report
  - Roundabout handout
    - Grass Range
      - Grass Range Preliminary Traffic Interim Improvements Report Update
      - Grass Range video
      - Grass Range Photographs
        
        North Bound 1
        
        North Bound 2
        
        North Bound 3
        
        East Bound 1
        
        East Bound 2
        
        South Bound 1
        
        South Bound 2
        
        South Bound 3
        
        West Bound 2
        
        West Bound 3
        
        Accident 1(May 31, 2017)
        
        Accident 2 (May 31, 2017)
      - Poplar
        
        Fort Peck Tribal Government Resolution #27-1933-2015-06
    - Commissioner Jergeson letter
- Montana Tax Appeal Board reports
  - Pending Hearings
  - Active Cases
HJ 22: Agricultural Property study
- HJ 22: Eligibility for Agricultural Classification in Selected States -- Megan Moore
- Small Parcel Agricultural Owners panel
  - Deb Carstensen handout
  - Karl Christians handout
HJ 18: Tax Increment Financing study
- HJ 18: Analysis of Taxable Values of Districts that Use Tax Increment Financing -- Megan Moore
- HJ 18: Bonds Secured with Tax Increment -- Megan Moore
SJ 23: Centrally Assessed and Industrial Property study
- SJ 23: Updated Overview of Classification, Assessment, and Taxation
- SJ 23: Updated Overview of Selected States' Methods for Valuing Centrally Assessed Property
Revenue Estimating & Monitoring
- Year-to-Date General Fund Revenue Collections with Highlights of 2016 Individual & 2015 Corporation Income Tax Return Data -- Legislative Fiscal Division
- 2017 Nov. Special Session Fiscal Report -- Legislative Fiscal Division
  - Appendix A: 2017 Nov. Special Session General Fund Agency Reductions by Program
- Memo: Economic Activity and General Fund Revenue -- Sen. Dick Barrett
Other
- Calculation of Statewide Property Tax Levies -- Megan Moore
- State Tax Structure Study Considerations -- Megan Moore
- Memo: Montana Tax Structure Sufficiency Research -- Amy Carlson
- RTIC letter to Legislative Finance Committee re: tax structure study
Public Comment
- Sivertsen public comment re: Grass Range roundabout
- Montana Taxpayers Association re: tax structure study

Agenda
Minutes Log - Sept 13 and Sept 14
Administrative Matters (for final review)
- Adopted Work Plan
- Adopted Decision Matrix
Agency Oversight
- Administrative Rule Review
- Supplemental Administrative Rule Review
- Department of Revenue reports
  - Memo: Department of Revenue Major Litigation Update -- Dan Whyte
  - Map: Requests for Informal Classification and Appraisal Reviews
  - Map: Market Value Appreciation 2017 Reappraisal
  - Memo: Personal Income Tax Fraudulent Returns -- Mike Kadas
  - Memo: Statewide Mills Levy For Fiscal Year 2018 -- Mike Kadas
- Department of Transportation reports
  - HB 473 update
  - MDT Response to Sen. Hoven Question
- Montana Tax Appeal Board reports
  - Active cases update
HJ 22: Agricultural Property Study
- Slides: Overview of Agricultural Land Valuation -- DOR
- Memo: Agricultural Land Valuation -- Mike Kadas
- Public comment
  - Letter from Hagenbarth Management
HJ 18: Tax Increment Financing
- Tax Increment Financing overview -- Megan Moore
- HJ 18: MSUB TIF Analysis Summary -- Megan Moore
- Analysis of the Performance and Potential of Tax Increment Financing Districts in Yellowstone County Montana -- Scott Rickard, Ph.D. and Jonna Jones
- Public comment
  - Rep. Essmann re: guarantee of bonds
  - Tax Increment Financing in Montana (2014)
SJ 23: Centrally Assessed and Industrial Property
- Slides: Industrial Properties Valuation and Timeline -- DOR
- Slides: Centrally Assessed Properties Valuation and Timeline -- DOR
- Comments of Richard G. Smith on Behalf of Northwestern Energy
- CHS handouts
  - Assessed Market Value per Montana DOR
  - Oil & Gas Journal Data
- Charter Communications slides
- Public comment
  - Qwest Corporation
  - Montana Taxpayers Association: Constitution and State Law, Tax Rates by Property Class, Historic Tax Rates
Revenue Estimating & Monitoring
- Letter to RTIC re: intention to certify projected general fund budget deficit
- Overview of RTIC Role Related to 17-7-140 -- Megan Moore
- FYE 2017 Budget Status Report -- Legislative Fiscal Division
- Financial Aspects to Consider -- Amy Carlson, LFD
- Wildfire Suppression in the 2019 Biennium -- LFD
- Memo: Fiscal Year 2018 & 2019 budget reductions under 17-7-140, MCA -- Dan Villa, OBPP
- General Fund Revenue Outlook -- Dan Villa, OBPP
- Public comment
  - Cancer Action Network/American Cancer Society
- RTIC Letter to Director Villa
Impact on Local Government of Placing Property into Federal Trust
Public Comment
- Patti Jacques re: Rental Care Sales Tax/Housing

Agenda
Minutes Log
Administrative Matters
Draft Work Plan
- Draft Decision Matrix (11x 17)
- Memo from Legislative Council
Agency Oversight
- Overview of Administrative Rule Review and June 2017 update
- Department of Revenue reports
- Department of Transportation reports
  - Public Involvement Plan
- Montana Tax Appeal Board reports
  - Active Cases and Upcoming Hearings
Revenue Estimating and Monitoring
Public Comment

The video/audio meeting archives are still under development. However, meeting recordings are available using the interface below.

A Guide to Using the Archives

Past/Current Recordings

The Revenue and Transportation Interim Committee is a 12-member, joint bipartisan committee of the Legislature that meets between legislative sessions. It has administrative rule review, draft legislation review, program evaluation, and monitoring responsibilities for the Montana Department of Revenue, the Montana Department of Transportation, and the Montana Tax Appeal Board. The committee also has revenue monitoring and estimating responsibilities and must prepare a revenue estimate for introduction before each regular legislative session.