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HB19 • 2025

Require public hearing before certain tax increment financing bonding

Require public hearing before certain tax increment financing bonding

Education Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Larry Brewster
Last action
2025-02-27
Official status
Chapter Number Assigned
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details on how the law will affect existing tax increment financing districts nearing their termination dates.

Require Public Hearing Before Tax Increment Bonding

This law requires local governments to hold a public hearing before using tax increment financing to pay for bonds that extend the life of a district beyond 15 years.

What This Bill Does

  • Requires local governments to have a public meeting before they can use tax money from new development to pay for bonds that will keep a special economic area going past its usual end date.
  • Local governments must tell the county and school districts about this public hearing.

Who It Names or Affects

  • Local government legislative bodies
  • Residents of areas with tax increment financing

Terms To Know

Tax Increment Financing (TIF)
A method used by local governments to finance projects in designated areas, where the increase in property taxes from new development is used to pay for improvements.
Public Hearing
A meeting held by a government body to gather public input on proposed actions or decisions.

Limits and Unknowns

  • The effective date of the law has not been specified.
  • It is unclear how this will affect existing tax increment financing districts that may be nearing their termination dates.

Bill History

  1. 2025-02-27 HOUSE

    (H) Signed by Governor

  2. 2025-02-27 HOUSE

    Chapter Number Assigned

  3. 2025-02-20 SENATE

    (S) Signed by President

  4. 2025-02-20 HOUSE

    (H) Transmitted to Governor

  5. 2025-02-19 HOUSE

    (H) Signed by Speaker

  6. 2025-02-18 HOUSE

    (H) Returned from Enrolling

  7. 2025-02-14 SENATE

    (S) Scheduled for 3rd Reading

  8. 2025-02-14 SENATE

    (S) 3rd Reading Concurred

  9. 2025-02-14 HOUSE

    (H) Sent to Enrolling

  10. 2025-02-13 SENATE

    (S) Scheduled for 2nd Reading

  11. 2025-02-13 SENATE

    (S) 2nd Reading Concurred

  12. 2025-01-29 SENATE

    (S) Committee Executive Action--Bill Concurred

  13. 2025-01-29 SENATE

    (S) Committee Report--Bill Concurred

  14. 2025-01-23 SENATE

    (S) Hearing

  15. 2025-01-20 SENATE

    (S) First Reading

  16. 2025-01-20 SENATE

    (S) Referred to Committee

  17. 2025-01-17 HOUSE

    (H) Scheduled for 3rd Reading

  18. 2025-01-17 HOUSE

    (H) 3rd Reading Passed

  19. 2025-01-17 HOUSE

    (H) Transmitted to Senate

  20. 2025-01-16 HOUSE

    (H) Scheduled for 2nd Reading

  21. 2025-01-16 HOUSE

    (H) 2nd Reading Passed

  22. 2025-01-14 HOUSE

    (H) Committee Executive Action--Bill Passed

  23. 2025-01-14 HOUSE

    (H) Committee Report--Bill Passed

  24. 2025-01-06 HOUSE

    (H) First Reading

  25. 2025-01-06 HOUSE

    (H) Hearing

  26. 2024-12-20 HOUSE

    (H) Referred to Committee

  27. 2024-11-22 HOUSE

    (H) Introduced

  28. 2024-11-19 HOUSE

    (LC) Draft Ready for Delivery

  29. 2024-11-19 HOUSE

    (LC) Draft Delivered to Requester

  30. 2024-11-15 HOUSE

    (LC) Draft in Assembly

  31. 2024-11-07 HOUSE

    (LC) Draft in Final Drafter Review

  32. 2024-09-27 HOUSE

    (LC) Draft in Input/Proofing

  33. 2024-09-13 HOUSE

    (LC) Draft in Edit

  34. 2024-09-11 HOUSE

    (LC) Draft in Legal Review

  35. 2024-09-04 HOUSE

    (LC) Drafter Assigned

Official Summary Text

Require public hearing before certain tax increment financing bonding

Current Bill Text

Read the full stored bill text
****
69th Legislature 2025 HB 19
- 1 - Authorized Print Version – HB 19
ENROLLED BILL
AN ACT REVISING TAX INCREMENT FINANCING LAWS TO REQUIRE A PUBLIC HEARING BEFORE
PLEDGING TAX INCREMENT TO THE PAYMENT OF BONDS THAT WILL EXTEND THE TERMINATION OF
A DISTRICT THAT USES TAX INCREMENT FINANCING; AMENDING SECTION 7-15-4289, MCA; AND
PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 7-15-4289, MCA, is amended to read:
"7-15-4289. Use of tax increments for bond payments -- public hearing requirement. (1) The tax
increment may be pledged to the payment of the principal of premiums, if any, and interest on bonds that the
local government may issue for the purpose of providing funds to pay those costs.
(2) Prior to pledging tax increment to the payment of bonds that will extend the termination of the
tax increment financing provision beyond the 15th year as provided in 7-15-4292, the legislative body of the
local government that approved adoption of the tax increment provision shall hold a public hearing on whether
fulfillment of the urban renewal plan or targeted economic development district comprehensive development
plan requires pledging tax increment to the payment of bonds. The local government shall provide notice of the
public hearing to the county and school district in which the urban renewal area or targeted economic
development district is located."
Section 2. Applicability. [This act] applies to a pledge of tax increment to the payment of bonds on
or after [the effective date of this act].
- END -
I hereby certify that the within bill,
HB 19, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 19
INTRODUCED BY L. BREWSTER
BY REQUEST OF THE REVENUE INTERIM COMMITTEE
AN ACT REVISING TAX INCREMENT FINANCING LAWS TO REQUIRE A PUBLIC HEARING BEFORE
PLEDGING TAX INCREMENT TO THE PAYMENT OF BONDS THAT WILL EXTEND THE TERMINATION OF
A DISTRICT THAT USES TAX INCREMENT FINANCING; AMENDING SECTION 7-15-4289, MCA; AND
PROVIDING AN APPLICABILITY DATE.