Committee: Revenue and Transportation Interim Committee
Author: Megan Moore
Posted on October 29, 2018
The Revenue and Transportation Interim Committee held its last regular meeting of the interim this week in Helena.
The committee finalized work on and adopted final reports for its three assigned studies on tax increment financing, centrally assessed and industrial property valuation, and agricultural property taxation. The study of agricultural property taxation also resulted in two committee-requested bills that will be introduced in the next legislative session.
One bill changes the cost deduction for irrigated land to the maximum $50 per acre for all irrigated property. Under current law, the deduction is based on a base rate, labor costs, and energy costs reported each appraisal cycle. The law change would mean that property owners no longer report energy costs. The second bill provides for provisional agricultural classification for up to 5 years for property with at least 100 fruit trees, 120 vines, or 2,000 Christmas trees and simplifies section 15-7-202, MCA.
The committee also heard an FY 2018 general fund revenue update and reports requested at the March joint meeting with the Legislative Finance Committee on taxes and the changing economy. Those reports included a state comparison of the share of total revenue that comes from the individual income tax, the property tax, and the general sales tax; an estimate of how much a sales tax could raise from certain industry sectors; and a shift-share analysis of general fund revenues. The Legislative Fiscal Analyst also gave the committee an overview of the Legislative Finance Committee’s study of the Budget Stabilization Reserve account.
Agency presentations included information on upcoming hearings and pending cases from the Montana Tax Appeal Board; a revised report on the charitable endowment credit, a major case update, and a marijuana tax update from the Department of Revenue; and an overview on distributions from the Bridge and Road Safety and Accountability account and a report on the use of the construction manager/general contractor alternative project delivery method from the Department of Transportation.
The committee will meet next on November 19, 2018, at the Capitol in Helena to adopt a revenue estimate for introduction to the 2019 Legislature. For more information, visit the committee’s website or contact Megan Moore, committee staff.
Committee Website: www.leg.mt.gov/rtic
Committee Staff: memoore@mt.gov or 406-444-4496
