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AN ACT GENERALLY REVISING SCHOOL FUNDING LAWS RELATED TO PROPERTY TAXES;
REQUIRING THE OFFICE OF PUBLIC INSTRUCTION AND THE DEPARTMENT OF REVENUE TO
COLLABORATE AND MITIGATE THE IMPACTS OF REAPPRAISAL ON SCHOOL PROPERTY TAXES;
PROVIDING THAT THE STATE AND COUNTY SCHOOL EQUALIZATION MILLS AND VOCATIONAL-
TECHNICAL EDUCATION MILLS ARE FIXED AMOUNTS; PROVIDING THAT SCHOOL LEVIES ARE NOT
SUBJECT TO SECTION 15-10-420, MCA; REVISING THE PROPERTY TAX RELIEF MECHANISMS WITHIN
THE SCHOOL EQUALIZATION AND PROPERTY TAX REDUCTION ACCOUNT; CONTINGENT ON
PROPERTY TAX LEGISLATION ENACTED, INCREASING GUARANTEED TAX BASE MULTIPLIERS FOR
FISCAL YEAR 2026 TO PROTECT PROPERTY TAXPAYERS; CONTINGENT ON PROPERTY TAX
LEGISLATION ENACTED, LOWERING PROPERTY TAXES BY INCREASING THE ON-SCHEDULE
REIMBURSEMENT RATES FOR SCHOOL TRANSPORTATION; REVISING THE STATE-COUNTY SHARE
OF ON-SCHEDULE REIMBURSEMENTS FOR SCHOOL TRANSPORTATION; REVISING DEFINITIONS;
AMENDING SECTIONS 15-10-420, 20-9-306, 20-9-331, 20-9-333, 20-9-336, 20-9-360, 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, 20-10-146, 20-25-439, AND 90-6-
403, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-10-420, MCA, is amended to read:
"15-10-420. Procedure for calculating levy. (1) (a) Subject to the provisions of this section, a
governmental entity that is authorized to impose mills may impose a mill levy sufficient to generate the amount
of property taxes actually assessed in the prior year plus one-half of the average rate of inflation for the prior 3
years. The maximum number of mills that a governmental entity may impose is established by calculating the
number of mills required to generate the amount of property tax actually assessed in the governmental unit in
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the prior year based on the current year taxable value, less the current year's newly taxable value, plus one-half
of the average rate of inflation for the prior 3 years.
(b) A governmental entity that does not impose the maximum number of mills authorized under
subsection (1)(a) may carry forward the authority to impose the number of mills equal to the difference between
the actual number of mills imposed and the maximum number of mills authorized to be imposed. The mill
authority carried forward may be imposed in a subsequent tax year.
(c) For the purposes of subsection (1)(a), the department shall calculate one-half of the average
rate of inflation for the prior 3 years by using the consumer price index, U.S. city average, all urban consumers,
using the 1982-84 base of 100, as published by the bureau of labor statistics of the United States department of
labor.
(2) A governmental entity may apply the levy calculated pursuant to subsection (1)(a) plus any
additional levies authorized by the voters, as provided in 15-10-425, to all property in the governmental unit,
including newly taxable property.
(3) (a) For purposes of this section, newly taxable property includes:
(i) annexation of real property and improvements into a taxing unit;
(ii) construction, expansion, or remodeling of improvements;
(iii) transfer of property into a taxing unit;
(iv) subdivision of real property; and
(v) transfer of property from tax-exempt to taxable status.
(b) Newly taxable property does not include an increase in value that arises because of an
increase in the incremental value within a tax increment financing district.
(4) (a) For the purposes of subsection (1), the taxable value of newly taxable property includes the
release of taxable value from the incremental taxable value of a tax increment financing district because of:
(i) a change in the boundary of a tax increment financing district;
(ii) an increase in the base value of the tax increment financing district pursuant to 7-15-4287; or
(iii) the termination of a tax increment financing district.
(b) If a tax increment financing district terminates prior to the certification of taxable values as
required in 15-10-202, the increment value is reported as newly taxable property in the year in which the tax
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increment financing district terminates. If a tax increment financing district terminates after the certification of
taxable values as required in 15-10-202, the increment value is reported as newly taxable property in the
following tax year.
(c) For the purpose of subsection (3)(a)(ii), the value of newly taxable class four property that was
constructed, expanded, or remodeled property since the completion of the last reappraisal cycle is the current
year market value of that property less the previous year market value of that property.
(d) For the purpose of subsection (3)(a)(iv), the subdivision of real property includes the first sale
of real property that results in the property being taxable as class four property under 15-6-134 or as
nonqualified agricultural land as described in 15-6-133(1)(c).
(5) Subject to subsection (8), subsection (1)(a) This section does not apply to:
(a) mills imposed under 15-10-109, 20-9-331, 20-9-333, 20-9-360, or 20-25-439;
(a)(b) school district levies established in Title 20 or any other title of the Montana Code Annotated; or
(b)(c) a mill levy imposed for a newly created regional resource authority.
(6) For purposes of subsection (1)(a), taxes imposed do not include net or gross proceeds taxes
received under 15-6-131 and 15-6-132.
(7) In determining the maximum number of mills in subsection (1)(a), the governmental entity:
(a) may increase the number of mills to account for a decrease in reimbursements; and
(b) may not increase the number of mills to account for a loss of tax base because of legislative
action that is reimbursed under the provisions of 15-1-121(7).
(8) The department shall calculate, on a statewide basis, the number of mills to be imposed for
purposes of 15-10-109, 20-9-331, 20-9-333, 20-9-360, and 20-25-439. However, the number of mills calculated
by the department may not exceed the mill levy limits established in those sections. The mill calculation must
be established in tenths of mills. If the mill levy calculation does not result in an even tenth of a mill, then the
calculation must be rounded up to the nearest tenth of a mill.
(9)(8) (a) The provisions of subsection (1) do not prevent or restrict:
(i) a judgment levy under 2-9-316, 7-6-4015, or 7-7-2202;
(ii) a levy to repay taxes paid under protest as provided in 15-1-402;
(iii) an emergency levy authorized under 10-3-405, 20-9-168, or 20-15-326;
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(iv) a levy for the support of a study commission under 7-3-184;
(v) a levy for the support of a newly established regional resource authority;
(vi) the portion that is the amount in excess of the base contribution of a governmental entity's
property tax levy for contributions for group benefits excluded under 2-9-212 or 2-18-703;
(vii) a levy for reimbursing a county for costs incurred in transferring property records to an
adjoining county under 7-2-2807 upon relocation of a county boundary;
(viii) a levy used to fund the sheriffs' retirement system under 19-7-404(3)(b); or
(ix) a governmental entity from levying mills for the support of an airport authority in existence prior
to May 7, 2019, regardless of the amount of the levy imposed for the support of the airport authority in the past.
The levy under this subsection (9)(a)(ix) (8)(a)(ix) is limited to the amount in the resolution creating the
authority.
(b) A levy authorized under subsection (9)(a) (8)(a) may not be included in the amount of property
taxes actually assessed in a subsequent year.
(10)(9) A governmental entity may levy mills for the support of airports as authorized in 67-10-402, 67-
11-301, or 67-11-302 even though the governmental entity has not imposed a levy for the airport or the airport
authority in either of the previous 2 years and the airport or airport authority has not been appropriated
operating funds by a county or municipality during that time.
(11)(10)The department may adopt rules to implement this section. The rules may include a method for
calculating the percentage of change in valuation for purposes of determining the elimination of property, new
improvements, or newly taxable value in a governmental unit."
Section 2. Section 20-9-306, MCA, is amended to read:
"20-9-306. Definitions. As used in this title, unless the context clearly indicates otherwise, the
following definitions apply:
(1) "BASE" means base amount for school equity.
(2) "BASE aid" means:
(a) direct state aid for 44.7% of the basic entitlement and 44.7% of the total per-ANB entitlement
for the general fund budget of a district;
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(b) subject to adjustment under 20-9-336, guaranteed tax base aid for an eligible district for any
amount up to 35.3% of the basic entitlement, up to 35.3% of the total per-ANB entitlement budgeted in the
general fund budget of a district, and 40% of the special education allowable cost payment;
(c) the total quality educator payment;
(d) the total at-risk student payment;
(e) the total Indian education for all payment;
(f) the total American Indian achievement gap payment;
(g) the total data-for-achievement payment; and
(h) the special education allowable cost payment.
(3) "BASE budget" means the minimum general fund budget of a district, which includes:
(a) subject to adjustment under 20-9-336, 80% of the basic entitlement, and 80% of the total per-
ANB entitlement, ;
(b) 100% of the following payments:
(i) the total quality educator payment, 100% of ;
(ii) the total at-risk student payment, 100% of ;
(iii) the total Indian education for all payment, 100% of ;
(iv) the total American Indian achievement gap payment, 100% of ; and
(v) the total data-for-achievement payment, ; and
(c) 140% of the special education allowable cost payment.
(4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which
may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366
through 20-9-369.
(5) "BASE funding program" means the state program for the equitable distribution of the state's
share of the cost of Montana's basic system of public elementary schools and high schools, through county
equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in
support of the BASE budgets of districts and special education allowable cost payments as provided in 20-9-
321.
(6) "Basic entitlement" means:
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(a) for each high school district:
(i) $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
with an ANB of 800 or fewer; and
(ii) $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
with an ANB of more than 800, plus $17,175 for fiscal year 2024 and $17,690 for each succeeding fiscal year
for each additional 80 ANB over 800;
(b) for each elementary school district or K-12 district elementary program without an approved
and accredited junior high school, 7th and 8th grade program, or middle school:
(i) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
K-12 district elementary programs with an ANB of 250 or fewer; and
(ii) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
for each succeeding fiscal year for each additional 25 ANB over 250;
(c) for each elementary school district or K-12 district elementary program with an approved and
accredited junior high school, 7th and 8th grade program, or middle school:
(i) for the district's kindergarten through grade 6 elementary program:
(A) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
K-12 district elementary programs with an ANB of 250 or fewer; and
(B) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
for each succeeding fiscal year for each additional 25 ANB over 250; and
(ii) for the district's approved and accredited junior high school, 7th and 8th grade programs, or
middle school:
(A) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
or K-12 district elementary programs with combined grades 7 and 8 with an ANB of 450 or fewer; and
(B) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
or K-12 district elementary programs with combined grades 7 and 8 with an ANB of more than 450, plus $5,724
for fiscal year 2024 and $5,896 for each succeeding fiscal year for each additional 45 ANB over 450.
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(7) "Budget unit" means the unit for which the ANB of a district is calculated separately pursuant to
20-9-311.
(8) "Direct state aid" means 44.7% of the basic entitlement and 44.7% of the total per-ANB
entitlement for the general fund budget of a district and funded with state and county equalization aid.
(9) "Maximum general fund budget" means a district's general fund budget amount calculated from
the basic entitlement for the district, the total per-ANB entitlement for the district, the total quality educator
payment, the total at-risk student payment, the total Indian education for all payment, the total American Indian
achievement gap payment, the total data-for-achievement payment, and the greater of the district's special
education allowable cost payment multiplied by:
(a) 175%; or
(b) the ratio, expressed as a percentage, of the district's special education allowable cost
expenditures to the district's special education allowable cost payment for the fiscal year that is 2 years
previous, with a maximum allowable ratio of 200%.
(10) "Over-BASE budget levy" means the district levy in support of any general fund amount
budgeted that is above the BASE budget and within the general fund budget limits established in 20-9-308 and
calculated as provided in 20-9-141.
(11) "Total American Indian achievement gap payment" means the payment resulting from
multiplying $235 for fiscal year 2024 and $242 for each succeeding fiscal year times the number of American
Indian students enrolled in the district as provided in 20-9-330.
(12) "Total at-risk student payment" means the payment resulting from the distribution of any funds
appropriated for the purposes of 20-9-328.
(13) "Total data-for-achievement payment" means the payment provided in 20-9-325 resulting from
multiplying $22.89 for fiscal year 2024 and $23.58 for each succeeding fiscal year by the district's ANB
calculated in accordance with 20-9-311.
(14) "Total Indian education for all payment" means the payment resulting from multiplying $23.91
for fiscal year 2024 and $24.63 for each succeeding fiscal year times the ANB of the district or $100 for each
district, whichever is greater, as provided for in 20-9-329.
(15) "Total per-ANB entitlement" means the district entitlement resulting from the following
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calculations and using either the current year ANB or the 3-year ANB provided for in 20-9-311:
(a) for a high school district or a K-12 district high school program, a maximum rate of $7,840 for
fiscal year 2024 and $8,075 for each succeeding fiscal year for the first ANB, decreased at the rate of 50 cents
per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving
the same amount of entitlement as the 800th ANB;
(b) for an elementary school district or a K-12 district elementary program without an approved and
accredited junior high school, 7th and 8th grade program, or middle school, a maximum rate of $6,123 for fiscal
year 2024 and $6,307 for each succeeding fiscal year for the first ANB, decreased at the rate of 20 cents per
ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving
the same amount of entitlement as the 1,000th ANB; and
(c) for an elementary school district or a K-12 district elementary program with an approved and
accredited junior high school, 7th and 8th grade program, or middle school, the sum of:
(i) a maximum rate of $6,123 for fiscal year 2024 and $6,307 for each succeeding fiscal year for
the first ANB for kindergarten through grade 6, decreased at the rate of 20 cents per ANB for each additional
ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the
1,000th ANB; and
(ii) a maximum rate of $7,840 for fiscal year 2024 and $8,075 for each succeeding fiscal year for
the first ANB for grades 7 and 8, decreased at the rate of 50 cents per ANB for each additional ANB for grades
7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the
800th ANB.
(16) "Total quality educator payment" means the payment resulting from multiplying $3,566 for fiscal
year 2024 and $3,673 for each succeeding fiscal year by the sum of:
(a) the number of full-time equivalent educators as provided in 20-9-327; and
(b) as provided in 20-9-324, for a school district meeting the legislative goal for competitive base
pay of teachers, the number of full-time equivalent teachers that were in the first 3 years of the teacher's
teaching career in the previous year.
(17) "Total special education allocation" means the state payment distributed pursuant to 20-9-321
that is the greater of the amount resulting from multiplying $293.74 for fiscal year 2024 and $302.55 for each
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succeeding fiscal year by the statewide current year ANB or the amount of the previous year's total special
education allocation."
Section 3. Section 20-9-331, MCA, is amended to read:
"20-9-331. Basic county tax for elementary equalization and other revenue for county
equalization of elementary BASE funding program. (1) Subject to 15-10-420, the The county commissioners
of each county shall levy an annual basic county tax of 33 mills on the dollar of the taxable value of all taxable
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-
537, 61-3-562, 61-3-570, and 67-3-204, for the purposes of elementary equalization and state BASE funding
program support. The revenue collected from this levy must be apportioned to the support of the elementary
BASE funding programs of the school districts in the county and to the school equalization and property tax
reduction account established in 20-9-336 in the following manner:
(a) In order to determine the amount of revenue raised by this levy that is retained by the county,
the sum of the estimated revenue identified in subsection (2) must be subtracted from the total of the BASE
funding programs of all elementary districts of the county.
(b) If the basic levy and other revenue prescribed by this section produce more revenue than is
required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to
the department of revenue, as provided in 15-1-504, for deposit to the state general fund immediately upon
occurrence of a surplus balance and each subsequent month, with any final remittance due no later than June
20 of the fiscal year for which the levy has been set.
(2) The revenue realized from the county's portion of the levy prescribed by this section and the
revenue from the following sources must be used for the equalization of the elementary BASE funding program
of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county
treasurer in accordance with 20-9-212(1):
(a) the portion of the federal Taylor Grazing Act funds designated for the elementary county
equalization fund under the provisions of 17-3-222;
(b) the portion of the federal flood control act funds distributed to a county and designated for
expenditure for the benefit of the county common schools under the provisions of 17-3-232;
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(c) all money paid into the county treasury as a result of fines for violations of law, except money
paid to a justice's court, and the use of which is not otherwise specified by law;
(d) any money remaining at the end of the immediately preceding school fiscal year in the county
treasurer's accounts for the various sources of revenue established or referred to in this section;
(e) any federal or state money distributed to the county as payment in lieu of property taxation,
including federal forest reserve funds allocated under the provisions of 17-3-213;
(f) gross proceeds taxes from coal under 15-23-703; and
(g) oil and natural gas production taxes."
Section 4. Section 20-9-333, MCA, is amended to read:
"20-9-333. Basic county tax for high school equalization and other revenue for county
equalization of high school BASE funding program. (1) Subject to 15-10-420, the The county
commissioners of each county shall levy an annual basic county tax of 22 mills on the dollar of the taxable
value of all taxable property within the county, except for property subject to a tax or fee under 61-3-321(2) or
(3), 61-3-529, 61-3-537, 61-3-562, 61-3-570, and 67-3-204, for the purposes of high school equalization and
state BASE funding program support. The revenue collected from this levy must be apportioned to the support
of the BASE funding programs of high school districts in the county and to the school equalization and property
tax reduction account established in 20-9-336 in the following manner:
(a) In order to determine the amount of revenue raised by this levy that is retained by the county,
the sum of the estimated revenue identified in subsection (2) must be subtracted from the sum of the county's
high school tuition obligation and the total of the BASE funding programs of all high school districts of the
county.
(b) If the basic levy and other revenue prescribed by this section produce more revenue than is
required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to
the department of revenue, as provided in 15-1-504, for deposit to the state general fund immediately upon
occurrence of a surplus balance and each subsequent month, with any final remittance due no later than June
20 of the fiscal year for which the levy has been set.
(2) The revenue realized from the county's portion of the levy prescribed in this section and the
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revenue from the following sources must be used for the equalization of the high school BASE funding program
of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county
treasurer in accordance with 20-9-212(1):
(a) any money remaining at the end of the immediately preceding school fiscal year in the county
treasurer's accounts for the various sources of revenue established in this section;
(b) any federal or state money distributed to the county as payment in lieu of property taxation,
including federal forest reserve funds allocated under the provisions of 17-3-213;
(c) gross proceeds taxes from coal under 15-23-703; and
(d) oil and natural gas production taxes."
Section 5. Section 20-9-336, MCA, is amended to read:
"20-9-336. School equalization and property tax reduction account -- uses. (1) There is a school
equalization and property tax reduction account in the state special revenue fund. Contingent on appropriation
by the legislature, money in the account is for distribution to school districts as the second source of funding for
state equalization aid as provided in 20-9-343. At fiscal yearend, any fund balance in the account exceeding
what was appropriated must be transferred to the guarantee account established in 20-9-622.
(2) The account receives revenue as described in 20-9-331, 20-9-333, and 20-9-360.
(3) (a) Beginning in fiscal year 2025 2027, each December the superintendent of public instruction
shall forecast the amount of revenue the account will receive in that fiscal year by dividing the sum of the
taxable value of all property in the state reported by the department of revenue pursuant to 20-9-369 by 1,000
to determine a statewide value mill and then multiplying that amount by 95 mills, or the number of mills
calculated by the department of revenue under 15-10-420(8) for the applicable fiscal year the total number of
mills specified in 20-9-331, 20-9-333, and 20-9-360.
(b) If the forecasted amount in subsection (3)(a) differs from the amount determined through the
same calculation in the prior fiscal year by $2 million or more and is:
(a) less by an amount greater than $2 million, then the superintendent shall:
(i) decrease the multiplier used to calculate the statewide elementary and high school guaranteed
tax base ratios used for funding BASE budgets under 20-9-366 to the nearest whole number determined by the
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superintendent to result in a decrease in the amount of guaranteed tax base aid distributed to eligible school
districts equal to 85% of the decrease in the calculated amount between the 2 years; and
(ii) decrease the multiplier used to calculate the statewide elementary and high school mill value
per ANB for school retirement guaranteed tax base purposes under 20-9-366 to the nearest whole number
determined by the superintendent to result in a decrease in the amount of retirement guaranteed tax base aid
distributed to eligible school districts counties equal to 15% of the decrease in the calculated amount between
the 2 years;.
(b) more, then the superintendent shall increase the multipliers used in the guaranteed tax base
formulas under 20-9-366 and in the formula for school major maintenance aid under 20-9-525 to the nearest
whole number by an amount calculated by the superintendent to result in an increase in the amount of
guaranteed tax base aid and school major maintenance aid distributed to eligible counties and school districts
equal to 55% of the increase in the calculated amount between the 2 years in the following order, with any
amount exceeding the caps under subsections (3)(b)(i) through (3)(b)(iii) flowing to the next mechanism:
(i) first, the multiplier used in calculating the statewide mill value per elementary and high school
ANB for retirement purposes, not to exceed 305%;
(ii) second, the multiplier used in calculating the amount of state school major maintenance aid
support for each dollar of local effort, not to exceed 365%; and
(iii) third, the multiplier used in calculating the facility guaranteed mill value per ANB for school
facility entitlement guaranteed tax base purposes, not to exceed 300%.
(c) If the forecasted amount in subsection (3)(a) is greater than the amount determined through
the same calculation in the prior fiscal year, the superintendent, using an amount equal to 50% of the
forecasted revenue growth up to revenue growth of 105% of the prior fiscal year revenue plus all forecasted
revenue growth above 105% of the prior fiscal year revenue, shall:
(i) first increase the multiplier used to calculate statewide mill value per elementary and high
school ANB for retirement purposes under 20-9-366, not to exceed 305%, to the nearest whole number
determined by the superintendent to result in an increase in the amount of guaranteed tax base aid distributed
to eligible counties as close as mathematically possible to the excess amount determined in subsection (3)(c);
and
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(ii) if there is an excess amount remaining after the 305% cap is hit under subsection (3)(c)(i),
then:
(A) the superintendent shall increase the percentages of the basic and per-ANB entitlements in 20-
9-306(2)(b) and (3)(a) by whole numbers not to exceed 45.3% and 90% respectively, then the multiplier used to
calculate the statewide elementary and high school guaranteed tax base ratios used for funding BASE budgets
under 20-9-366 by whole numbers in a manner determined by the superintendent to result in an increase in the
amount of guaranteed tax base aid distributed to eligible districts as close as mathematically possible to the
excess amount remaining without an increase in the amount of BASE property taxes on a statewide basis; and
(B) in making the calculations under subsection (3)(c)(ii)(A) and in calculating the guaranteed tax
base aid ratios under 20-9-366 for the ensuing school fiscal year, the superintendent shall utilize a GTBA
budget area for the prior year based on the adjusted percentages of the basic and per-ANB entitlements.
(4) (a) The adjustments to the multipliers and percentages under subsection (3) are applicable to
state equalization aid distributions in the fiscal year following the adjustment.
(b) Adjustments to the multipliers and percentages made under subsection (3) remain in effect in
subsequent years unless further changed under 20-9-366 or subsection (3) of this section or as otherwise
provided by law."
Section 6. Section 20-9-360, MCA, is amended to read:
"20-9-360. State equalization aid levy. Subject to 15-10-420, there There is a levy of 40 mills
imposed by the county commissioners of each county on all taxable property within the state, except property
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-
204. Proceeds of the levy must be remitted to the department of revenue, as provided in 15-1-504, and must be
deposited to the credit of the school equalization and property tax reduction account established in 20-9-336 for
state equalization aid to the public schools of Montana."
Section 7. Section 20-9-366, MCA, is amended to read:
"20-9-366. Definitions. Subject to adjustments pursuant to 20-9-336, as used in 20-9-366 through
20-9-371, the following definitions apply:
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(1) "County retirement mill value per elementary ANB" or "county retirement mill value per high
school ANB" means the sum of the taxable valuation in the previous year of all property in the county divided by
1,000, with the quotient divided by the total county elementary ANB count or the total county high school ANB
count used to calculate the elementary school districts' and high school districts' prior year total per-ANB
entitlement amounts.
(2) (a) "District guaranteed tax base ratio" for guaranteed tax base funding for the BASE budget of
an eligible district means the taxable valuation in the previous year of all property in the district, except for
property value disregarded because of protested taxes under 15-1-409(2) or property subject to the creation of
a new school district under 20-6-326, divided by the district's prior year GTBA budget area.
(b) "District mill value per ANB", for school facility entitlement purposes, means the taxable
valuation in the previous year of all property in the district, except for property subject to the creation of a new
school district under 20-6-326, divided by 1,000, with the quotient divided by the ANB count of the district used
to calculate the district's prior year total per-ANB entitlement amount.
(3) "Facility guaranteed mill value per ANB", for school facility entitlement guaranteed tax base
purposes, means, subject to adjustment under 20-9-336, the sum of the taxable valuation in the previous year
of all property in the state, multiplied by 140% and divided by 1,000, with the quotient divided by the total state
elementary ANB count or the total state high school ANB count used to calculate the elementary school
districts' and high school districts' prior year total per-ANB entitlement amounts.
(4) "Guaranteed tax base aid budget area" or "GTBA budget area" means the portion of a district's
BASE budget after the following payments are subtracted:
(a) direct state aid;
(b) the total data-for-achievement payment;
(c) the total quality educator payment;
(d) the total at-risk student payment;
(e) the total Indian education for all payment;
(f) the total American Indian achievement gap payment; and
(g) the state special education allowable cost payment.
(5) (a) "Statewide elementary guaranteed tax base ratio" or "statewide high school guaranteed tax
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base ratio", for guaranteed tax base funding for the BASE budget of an eligible district, means, subject to
adjustment under 20-9-336 and [section 19], the sum of the taxable valuation in the previous year of all property
in the state, multiplied by 254% for fiscal year 2024 and by 259% for fiscal year 2025 262%, subject to
adjustment by the superintendent of public instruction pursuant to [section 20], for fiscal year 2026 and by
262% for fiscal year 2027 and each succeeding fiscal year and divided by the prior year statewide GTBA
budget area for the state elementary school districts or the state high school districts. For fiscal year 2024 and
subsequent fiscal years, the superintendent of public instruction shall increase the multiplier, not to exceed
262%, in this subsection (5)(a) as follows:
(i) for fiscal years 2024 through 2031, if the revenue transferred to the state general fund pursuant
to 16-12-111 in the prior fiscal year is at least $1 million more than the revenue transferred in the fiscal year 2
years prior, then:
(A) multiply the amount of increased revenue transferred to the state general fund pursuant to 16-
12-111 in the prior fiscal year above the amount of revenue transferred in the fiscal year 2 years prior by 0.25,
divide the resulting product by $500,000, and round to the nearest whole number; and
(B) add the number derived in subsection (5)(a)(i)(A) as a percentage point increase to the
multiplier used for the prior fiscal year;
(ii) for fiscal years 2024 through 2031, if the revenue transferred to the state general fund pursuant
to 16-12-111 in the prior fiscal year is less than $1 million more than the revenue transferred in the fiscal year 2
years prior, then the multiplier is equal to the multiplier used for the prior fiscal year;
(iii) for fiscal years 2032 and subsequent fiscal years, the multiplier is equal to the multiplier used
for fiscal year 2031; and
(iv) for all multiplier increases under this subsection (5)(a), the calculations are made in the year
prior to the year in which the increase to the multiplier takes effect and impacts distribution of guaranteed tax
base aid.
(b) "Statewide mill value per elementary ANB" or "statewide mill value per high school ANB", for
school retirement guaranteed tax base purposes, means, subject to adjustment under 20-9-336 and [section
19], the sum of the taxable valuation in the previous year of all property in the state, multiplied by 189% 189%,
subject to adjustment by the superintendent of public instruction pursuant to [section 20], for fiscal year 2026
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and 189% for fiscal year 2027 and each succeeding fiscal year and divided by 1,000, with the quotient divided
by the total state elementary ANB count or the total state high school ANB amount used to calculate the
elementary school districts' and high school districts' prior year total per-ANB entitlement amounts."
Section 8. Section 20-9-367, MCA, is amended to read:
"20-9-367. Eligibility to receive guaranteed tax base aid or state debt service assistance for
school facilities. (1) If the district guaranteed tax base ratio of an elementary or high school district is less than
the corresponding statewide elementary or high school guaranteed tax base ratio, the district may receive
guaranteed tax base aid based on the number of mills levied in the district in support of up to 35.3% of the
basic entitlement, up to 35.3% of the total per-ANB entitlement, and up to 40% of the special education
allowable cost payment budgeted within the general fund budget the district's GTBA budget area.
(2) If the county retirement mill value per elementary ANB or the county retirement mill value per
high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB,
the county may receive guaranteed tax base aid based on the number of mills levied in the county in support of
the retirement fund budgets of the respective elementary or high school districts in the county.
(3) For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the
district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB
or statewide mill value per high school ANB, the district may receive debt service assistance in the form of a
state advance or reimbursement for school facilities in support of the debt service fund."
Section 9. Section 20-9-368, MCA, is amended to read:
"20-9-368. Amount of guaranteed tax base aid. (1) The amount of guaranteed tax base aid per
ANB that a county may receive in support of the retirement fund budgets of the elementary school districts in
the county is the difference between the county mill value per elementary ANB and the statewide mill value per
elementary ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the
elementary districts in the county.
(2) The amount of guaranteed tax base aid per ANB that a county may receive in support of the
retirement fund budgets of the high school districts in the county is the difference between the county mill value
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per high school ANB and the statewide mill value per high school ANB, multiplied by the number of mills levied
in support of the retirement fund budgets for the high school districts in the county.
(3) The amount of guaranteed tax base aid that a district may receive in support of up to 35.3% of
the basic entitlement, up to 35.3% of the total per-ANB entitlement budgeted within the general fund budget,
and up to 40% of the special education payment the district's GTBA budget area is calculated in the following
manner:
(a) multiply the sum of the district's prior year GTBA budget area by the corresponding statewide
guaranteed tax base ratio;
(b) subtract the prior year taxable valuation of the district from the product obtained in subsection
(3)(a); and
(c) divide the remainder by 1,000 to determine the equivalent to the dollar amount of guaranteed
tax base aid for each mill levied.
(4) Guaranteed tax base aid provided to any county or district under this section is earmarked to
finance the fund or portion of the fund for which it is provided. If a county or district receives more guaranteed
tax base aid than it is entitled to, the excess must be returned to the state as required by 20-9-344."
Section 10. Section 20-9-404, MCA, is amended to read:
"20-9-404. Contracts and bonds for joint construction. (1) The trustees of a school district may
enter into a contract with the trustees of any school district within the county, with any school district in an
adjoining county, with the governing body of another political subdivision within the county in which the school
district is located, or with the governing body of a political subdivision of a county adjoining the school district to
provide for the joint construction of a facility upon terms and conditions mutually agreed upon between the
districts.
(2) The trustees of any district executing a contract in accordance with this section may, subject to
15-10-420, levy taxes and issue bonds for the purpose of constructing the facilities authorized by this section."
Section 11. Section 20-9-525, MCA, is amended to read:
"20-9-525. School major maintenance aid account -- formula. (1) There is a school major
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maintenance aid account in the state special revenue fund provided for in 17-2-102.
(2) The purpose of the account is to provide, contingent on appropriation from the legislature,
funding for school major maintenance aid as provided in subsection (3) for school facility projects, including the
payment of principal and interest on obligations issued pursuant to 20-9-471 for school facility projects, that
support a basic system of free quality public elementary and secondary schools under 20-9-309, including but
not limited to:
(a) improvements to school and student safety and security as described in 20-9-236(1); and
(b) projects designed to produce operational efficiencies such as utility savings, reduced future
maintenance costs, improved utilization of staff, and enhanced learning environments for students, including
but not limited to projects addressing:
(i) roofing systems;
(ii) heating, air-conditioning, and ventilation systems;
(iii) energy-efficient window and door systems and insulation;
(iv) plumbing systems;
(v) electrical systems and lighting systems;
(vi) information technology infrastructure, including internet connectivity both within and to the
school facility; and
(vii) other critical repairs to an existing school facility or facilities.
(3) (a) In any year in which the legislature has appropriated funds for distribution from the school
major maintenance aid account, the superintendent of public instruction shall administer the distribution of
school major maintenance aid from the school major maintenance aid account for deposit in the subfund of the
building reserve fund provided for in 20-9-502(3)(e). Subject to proration under subsection (5) of this section,
aid must be annually distributed no later than the last working day of May to a school district imposing a levy
pursuant to 20-9-502(3) in the current school fiscal year, with the amount of state support per dollar of local
effort of the applicable elementary and high school program of each district determined as follows:
(i) using the taxable valuation most recently determined by the department of revenue under 20-9-
369:
(A) divide the total statewide taxable valuation by the statewide total of school major maintenance
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amounts and, subject to adjustment under 20-9-336, multiply the result by 187%;
(B) multiply the result determined under subsection (3)(a)(i)(A) by the district's school major
maintenance amount;
(C) subtract the district's taxable valuation from the amount determined under subsection
(3)(a)(i)(B); and
(D) divide the amount determined under subsection (3)(a)(i)(C) by 1,000;
(ii) determine the greater of the amount determined in subsection (3)(a)(i) or 18% of the district's
mill value;
(iii) multiply the result determined under subsection (3)(a)(ii) by the district's school major
maintenance amount, then divide the product by the sum of the result determined under subsection (3)(a)(ii)
and the district's mill value; and
(iv) divide the result determined under subsection (3)(a)(iii) by the difference resulting from
subtracting the result determined under subsection (3)(a)(iii) from the district's school major maintenance
amount.
(b) For a district with an adopted general fund budget in the prior year greater than or equal to
97% of the district's general fund maximum budget in the prior year, the amount determined in subsection
(3)(a)(iv) rounded to the nearest cent is the amount of school major maintenance aid per dollar of local effort,
not to exceed an amount that would result in the state aid composing more than 80% of the district's school
major maintenance amount.
(c) For a district with an adopted general fund budget in the prior year less than 97% of the
district's maximum budget in the prior year, multiply the amount determined in subsection (3)(a)(iv) by the ratio
of the district's adopted general fund budget in the prior year to the district's maximum general fund budget in
the prior year. The result, rounded to the nearest cent, is the amount of state school major maintenance aid per
dollar of local effort, not to exceed an amount that would result in the state aid composing more than 80% of the
district's school major maintenance amount.
(4) Using the taxable valuation most recently determined by the department of revenue under 20-
9-369, the superintendent shall provide school districts with a preliminary estimated amount of state school
major maintenance aid per dollar of local effort for the ensuing school year no later than March 1 and a final
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amount for the current school year no later than July 31.
(5) If the appropriation from or the available funds in the school major maintenance aid account in
any school fiscal year are less than the amount for which school districts would otherwise qualify, the
superintendent of public instruction shall proportionally prorate the aid distributed to ensure that the distributions
do not exceed the appropriated or available funds.
(6) If in any fiscal year the amount of revenue in the school major maintenance aid account is
sufficient to fund school major maintenance aid without a proration reduction pursuant to subsection (5) and if in
that same fiscal year the amount of revenue available in the school facility and technology account established
in 20-9-516 will result in a proration reduction in debt service assistance pursuant to 20-9-346(2)(b) for that
fiscal year, the state treasurer shall transfer any excess funds in the school major maintenance aid account to
the school facility and technology account, not to exceed the amount required to avoid a proration reduction.
(7) For the purposes of this section, the following definitions apply:
(a) "Local effort" means an amount of money raised by levying no more than 10 mills pursuant to
20-9-502(3) and, provided that 10 mills have been levied, any additional amount of money deposited or
transferred by trustees to the subfund pursuant to 20-9-502(3).
(b) "School major maintenance amount" means the sum of $15,000 and the product of $110
multiplied by the district's budgeted ANB for the prior fiscal year."
Section 12. Section 20-9-533, MCA, is amended to read:
"20-9-533. Technology acquisition and depreciation fund -- limitations. (1) The trustees of a
district may establish a technology acquisition and depreciation fund for school district expenditures incurred
for:
(a) the purchase, rental, repair, and maintenance of technological equipment, including computers
and computer network access;
(b) cloud computing services for technology infrastructure, platform, software, network, storage,
security, data, database, test environment, curriculum, or desktop virtualization purposes, including any
subscription or any license-based or pay-per-use service that is accessed over the internet or other remote
network to meet the district's information technology and other needs; and
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(c) associated technical training for school district personnel.
(2) Any expenditures from the technology acquisition and depreciation fund must be made in
accordance with the financial administration requirements for a budgeted fund pursuant to this title. The
trustees of a district shall fund the technology acquisition and depreciation fund with:
(a) the state money received under 20-9-534; and
(b) other local, state, private, and federal funds received for the purpose of funding technology or
technology-associated training.
(3) In depreciating the technological equipment of a school district for levies approved prior to July
1, 2013, the trustees may include in the district's budget, contingent upon voter approval of a levy under
subsection (6) and pursuant to the school budgeting requirements of this title, an amount each fiscal year that
does not exceed 20% of the original cost of any technological equipment, including computers and computer
network access, that is owned by the district. The amount budgeted pursuant to levies approved prior to July 1,
2013, may not, over time, exceed 150% of the original cost of the equipment.
(4) The annual revenue requirement for each district's technology acquisition and depreciation
fund determined within the limitations of this section must be reported by the county superintendent of schools
to the board of county commissioners on or before the later of the first Tuesday in September or within 30
calendar days after receiving certified taxable values as the technology acquisition and depreciation fund levy
requirement for that district, and a levy must be made by the county commissioners in accordance with 20-9-
142.
(5) Any expenditure of technology acquisition and depreciation fund money must be within the
limitations of the district's final technology acquisition and depreciation fund budget and the school financial
administration provisions of this title.
(6) In addition to the funds received pursuant to subsection (2), the trustees of a school district
may submit a proposition to the qualified electors of the district to approve an additional levy to fund costs of
providing the technologies included in subsection (1). The election must be called and conducted in the manner
prescribed by this title for school elections and in the manner prescribed by 15-10-425. A technology levy
authorization approved after July 1, 2013, may not exceed 10 years.
(7) The technology proposition is approved if a majority of those electors voting at the election
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approve the levy. Notwithstanding any other provision of law, the levy under subsection (6) is subject to 15-10-
420.
(8) A district whose qualified electors have previously approved a technology levy of perpetual
duration prior to July 1, 2013, may submit a proposition to the qualified electors on or after July 1, 2013, for an
increase in the amount of the levy to cover the costs of providing technologies under subsections (1)(b) and
(1)(c) or to seek relief from the obligation of tracking depreciation of equipment under a levy approved prior to
July 1, 2013. In seeking approval of the proposition, the district shall specify a proposed revised duration of the
underlying perpetual levy previously approved and a proposed duration for the proposed increase in the
amount of the levy, neither of which may exceed 10 years. If the proposition is approved by the qualified
electors, both the underlying levy previously approved for a perpetual duration and the increase in the amount
of the levy are subject to the revised durational limit specified on the ballot.
(9) The trustees of a district may not use revenue in the technology acquisition and depreciation
fund to finance contributions to the teachers' retirement system, the public employees' retirement system, or the
federal social security system or for unemployment compensation insurance."
Section 13. Section 20-10-141, MCA, is amended to read:
"20-10-141. Schedule of maximum reimbursement by mileage rates. (1) The mileage rates in
subsection (2) for school transportation constitute the maximum reimbursement to districts for school
transportation from state and county sources of transportation revenue under the provisions of 20-10-145 and
20-10-146. These rates may not limit the amount that a district may budget in its transportation fund budget in
order to provide for the estimated and necessary cost of school transportation during the ensuing school fiscal
year. All bus miles traveled on bus routes approved by the county transportation committee are reimbursable.
Nonbus mileage is reimbursable for a vehicle driven by a bus driver to and from an overnight location of a
school bus when the location is more than 10 miles from the school. A district may approve additional bus or
nonbus miles within its own district or approved service area but may not claim reimbursement for the mileage.
Any vehicle, the operation of which is reimbursed for bus mileage under the rate provisions of this schedule,
must be a school bus, as defined by this title, driven by a qualified driver on a bus route approved by the county
transportation committee and the superintendent of public instruction.
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(2) Subject to adjustment by the superintendent of public instruction pursuant to [section 20]:
(a) The the rate for each bus mile traveled must be determined in accordance with the following
schedule:
(i) 50 cents 50 cents for a school bus as defined in 20-10-101(5)(a)(ii);
(ii) 95 cents 95 cents for a school bus with a rated capacity of not more than 49 passenger seating
positions;
(iii) $1.15 $1.15 for a school bus with a rated capacity of 50 to 59 passenger seating positions;
(iv) $1.36 $1.36 for a school bus with a rated capacity of 60 to 69 passenger seating positions;
(v) $1.57 $1.57 for a school bus with a rated capacity of 70 to 79 passenger seating positions; and
(vi) $1.80 $1.80 for a school bus with 80 or more passenger seating positions.
(b) Nonbus mileage, as provided in subsection (1), must be reimbursed at a rate of 50 cents 50
cents a mile.
(3) The rated capacity is the number of passenger seating positions of a school bus as determined
under the policy adopted by the board of public education. If modification of a school bus to accommodate
pupils with disabilities reduces the rated capacity of the bus, the reimbursement to a district for pupil
transportation is based on the rated capacity of the bus prior to modification.
(4) The number of pupils riding the school bus may not exceed the passenger seating positions of
the bus."
Section 14. Section 20-10-144, MCA, is amended to read:
"20-10-144. Computation of revenue and net tax levy requirements for district transportation
fund budget. Before the second Monday of August, the county superintendent shall compute the revenue
available to finance the transportation fund budget of each district. The county superintendent shall compute
the revenue for each district on the following basis:
(1) The "schedule amount" of the budget expenditures that is derived from the rate schedules in
20-10-141 and 20-10-142 must be determined by adding the following amounts:
(a) the sum of the maximum reimbursable expenditures for all approved school bus routes
maintained by the district (to determine the maximum reimbursable expenditure, multiply the applicable rate for
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each bus mile by the total number of miles to be traveled during the ensuing school fiscal year on each bus
route approved by the county transportation committee and maintained by the district); plus
(b) the total of all individual transportation per diem reimbursement rates for the district as
determined from the contracts submitted by the district multiplied by the number of pupil-instruction days
scheduled for the ensuing school attendance year; plus
(c) any estimated costs for supervised home study or supervised correspondence study for the
ensuing school fiscal year; plus
(d) the amount budgeted in the budget for the contingency amount permitted in 20-10-143, except
if the amount exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c) or $100, whichever is larger, the
contingency amount on the budget must be reduced to the limitation amount and used in this determination of
the schedule amount; plus
(e) any estimated costs for transporting a child out of district when the child has mandatory
approval to attend school in a district outside the district of residence.
(2) (a) The schedule amount determined in subsection (1) or the total transportation fund budget,
whichever is smaller, is divided by 2 4 and is used to determine the available state and county revenue to be
budgeted on the following basis:
(i) one-half three-fourths is the budgeted state transportation reimbursement; and
(ii) one-half one-fourth is the budgeted county transportation fund reimbursement and must be
financed in the manner provided in 20-10-146.
(b) When the district has a sufficient amount of fund balance for reappropriation and other sources
of district revenue, as determined in subsection (3), to reduce the total district obligation for financing to zero,
any remaining amount of district revenue and fund balance reappropriated must be used to reduce the county
financing obligation in subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to
reduce the state financial obligation in subsection (2)(a)(i).
(c) The county revenue requirement for a joint district, after the application of any district money
under subsection (2)(b), must be prorated to each county incorporated by the joint district in the same
proportion as the ANB of the joint district is distributed by pupil residence in each county.
(3) The total of the money available for the reduction of property tax on the district for the
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transportation fund must be determined by totaling:
(a) anticipated federal money received under the provisions of 20 U.S.C. 7701, et seq., or other
anticipated federal money received in lieu of that federal act;
(b) anticipated payments from other districts for providing school bus transportation services for
the district;
(c) anticipated payments from a parent or guardian for providing school bus transportation services
for a child;
(d) anticipated or reappropriated interest to be earned by the investment of transportation fund
cash in accordance with the provisions of 20-9-213(4);
(e) anticipated revenue from coal gross proceeds under 15-23-703;
(f) anticipated oil and natural gas production taxes;
(g) anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320
through 20-5-324;
(h) any other revenue anticipated by the trustees to be earned during the ensuing school fiscal
year that may be used to finance the transportation fund; and
(i) any fund balance available for reappropriation as determined by subtracting the amount of the
end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school
fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating
reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and
is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund
budget.
(4) The district levy requirement for each district's transportation fund must be computed by:
(a) subtracting the schedule amount calculated in subsection (1) from the total preliminary
transportation budget amount; and
(b) subtracting the amount of money available to reduce the property tax on the district, as
determined in subsection (3), from the amount determined in subsection (4)(a).
(5) The transportation fund levy requirements determined in subsection (4) for each district must
be reported to the county commissioners on or before the later of the first Tuesday in September or within 30
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calendar days after receiving certified taxable values by the county superintendent as the transportation fund
levy requirements for the district, and the levy must be made by the county commissioners in accordance with
20-9-142."
Section 15. Section 20-10-145, MCA, is amended to read:
"20-10-145. State transportation reimbursement. (1) A district providing school bus transportation
or individual transportation in accordance with this title, board of public education transportation policy, and
superintendent of public instruction transportation rules must receive a state reimbursement of its transportation
expenditures under the transportation reimbursement rate provisions of 20-10-141 and 20-10-142. The state
transportation reimbursement is one-half three-fourths of the reimbursement amounts established in 20-10-141
and 20-10-142 or one-half of the district's transportation fund budget, whichever is smaller, and must be
computed on the basis of the number of days the transportation services were actually rendered to transport
eligible transportees, as defined in 20-10-101, to or from school to participate in the minimum aggregate hours
of instruction required pursuant to 20-1-301. In determining the amount of the state transportation
reimbursement, an amount claimed by a district may not be considered for reimbursement unless the amount
has been paid in the regular manner provided for the payment of other financial obligations of the district.
(2) Requests for the state transportation reimbursement must be made by each district
semiannually during the school fiscal year on the claim forms and procedure promulgated by the
superintendent of public instruction. The claims for state transportation reimbursements must be routed by the
district to the county superintendent, who after reviewing the claims shall send them to the superintendent of
public instruction. The superintendent of public instruction shall establish the validity and accuracy of the claims
for the state transportation reimbursements by determining compliance with this title, board of public education
transportation policy, and the transportation rules of the superintendent of public instruction. After making any
necessary adjustments to the claims, the superintendent of public instruction shall order a disbursement from
the state money appropriated by the legislature of the state of Montana for the state transportation
reimbursement.
(3) The superintendent of public instruction shall make the disbursement to each school district
according to the following schedule:
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(a) By September 1 of each year, the superintendent of public instruction shall make a payment
equal to 50% of the state transportation reimbursement paid to the district in the previous school year.
(b) By March 31 of each year, the superintendent of public instruction shall make a payment to the
district equal to the approved amount of state reimbursement for first semester transportation claims less the
amount distributed to the district under subsection (3)(a).
(c) By June 30 of each year, the superintendent of public instruction shall make a payment to the
district to pay the balance of the approved amount due to the district for first and second semester
transportation.
(4) Unless authorized for payment to a school district investment account established under 20-9-
235, the payment of all the district's claims within one county must be made to the county treasurer of the
county, and the county superintendent shall apportion the payment in accordance with the apportionment order
supplied by the superintendent of public instruction.
(5) After adopting a budget amendment for the transportation fund in accordance with 20-9-161
through 20-9-166, the district shall send to the superintendent of public instruction a copy of each new or
amended individual transportation contract and each new or amended bus route form to which the budget
amendment applies. State reimbursement for the additional obligations must be paid as provided in subsection
(1)."
Section 16. Section 20-10-146, MCA, is amended to read:
"20-10-146. County transportation reimbursement. (1) The apportionment of the county
transportation reimbursement by the county superintendent for school bus transportation or individual
transportation that is actually rendered by a district in accordance with this title, board of public education
transportation policy, and the transportation rules of the superintendent of public instruction must be the same
as one-third the amount of the state transportation reimbursement payment, except that:
(a) if any cash was used to reduce the budgeted county transportation reimbursement under the
provisions of 20-10-144(2)(b), the annual apportionment is limited to the budget amount;
(b) when the county transportation reimbursement for a school bus has been prorated between
two or more counties because the school bus is conveying pupils of more than one district located in the
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counties, the apportionment of the county transportation reimbursement must be adjusted to pay the amount
computed under the proration; and
(c) when county transportation reimbursement is required under the mandatory attendance
agreement provisions of 20-5-321.
(2) The county transportation net levy requirement for the financing of the county transportation
fund reimbursements to districts is computed by:
(a) totaling the net requirement for all districts of the county, including reimbursements to a special
education cooperative or prorated reimbursements to joint districts or reimbursements under the mandatory
attendance agreement provisions of 20-5-321;
(b) determining the sum of the money available to reduce the county transportation net levy
requirement by adding:
(i) anticipated money that may be realized in the county transportation fund during the ensuing
school fiscal year;
(ii) oil and natural gas production taxes;
(iii) coal gross proceeds taxes under 15-23-703;
(iv) any fund balance available for reappropriation from the end-of-the-year fund balance in the
county transportation fund;
(v) federal forest reserve funds allocated under the provisions of 17-3-213; and
(vi) other revenue anticipated that may be realized in the county transportation fund during the
ensuing school fiscal year; and
(c) subtracting the money available, as determined in subsection (2)(b), to reduce the levy
requirement from the county transportation net levy requirement.
(3) The net levy requirement determined in subsection (2)(c) must be reported to the county
commissioners on or before the later of the first Tuesday in September or within 30 calendar days after
receiving certified taxable values by the county superintendent, and a levy must be set by the county
commissioners in accordance with 20-9-142.
(4) The county superintendent of each county shall submit a report of the revenue amounts used
to establish the levy requirements to the superintendent of public instruction on or before September 15. The
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report must be completed on forms supplied by the superintendent of public instruction.
(5) The county superintendent shall apportion the county transportation reimbursement from the
proceeds of the county transportation fund. The county superintendent shall order the county treasurer to make
the apportionments in accordance with 20-9-212(2) and after the receipt of the semiannual state transportation
reimbursement payments."
Section 17. Section 20-25-439, MCA, is amended to read:
"20-25-439. Vocational-technical education -- mill levy required. (1) Subject to 15-10-420, the The
boards of county commissioners of Cascade, Lewis and Clark, Missoula, Silver Bow, and Yellowstone Counties
shall in each calendar year levy a tax of 1 1/2 mills on the dollar value of all taxable property, real and personal,
located within the respective county.
(2) The funds from the mill levy must be deposited in the general fund and must be distributed for
vocational-technical education on the basis of budgets approved by the board of regents."
Section 18. Section 90-6-403, MCA, is amended to read:
"90-6-403. Jurisdictional revenue disparity -- conditioned exemption and reallocation of certain
taxable valuation. (1) When an impact plan for a large-scale mineral development approved pursuant to 90-6-
307 identifies a jurisdictional revenue disparity, the board shall promptly notify the developer, all affected local
government units, and the department of revenue of the disparity. Except as provided in 90-6-404 and this
section, the increase in taxable valuation of the mineral development that occurs after the issuance and
validation of a permit under 82-4-335 is not subject to the usual application of county and school district
property tax mill levies. This increase in taxable valuation must be allocated to local government units as
provided in 90-6-404. The increase in taxable valuation allocated as provided in 90-6-404 is subject to 15-10-
420 and the application of property tax mill levies in the local government unit to which it is allocated. The
increase in taxable valuation allocated to the local government unit is considered newly taxable property in the
recipient local government unit as provided in 15-10-420.
(2) Subject to 15-10-420, the The total taxable valuation of a large-scale mineral development
remains subject to the statewide mill levies and basic county levies for elementary and high school BASE
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funding programs as provided in 20-9-331 and 20-9-333.
(3) The provisions of subsection (1) remain in effect until the large-scale mineral development
ceases operations or until the existence of the jurisdictional revenue disparity ceases, as determined by the
board."
Section 19. Adjustments to guaranteed tax base multipliers and calculations to mitigate
impacts of reappraisal on property tax relief. (1) The department of revenue and the office of public
instruction shall annually collaborate and jointly assess how reappraisal affects, on a statewide basis, the
portions of funding between guaranteed tax base aid and local property tax responsibilities for the general fund
BASE budgets of school districts and the countywide school retirement funds budgets of counties.
(2) After completing the analysis under subsection (1) and by the May 1 deadline for finalizing
guaranteed tax base aid ratios under 20-9-369, the office of public instruction shall annually adjust the
guaranteed tax base multipliers and calculations outlined in sections 20-9-366 through 20-9-368 to prevent any
statewide increase in property taxes due to the combined effects of reappraisal and the standard guaranteed
tax base aid formulas for the general fund BASE budgets of school districts and the countywide school
retirement funds budgets of counties.
Section 20. School funding adjustments following 2025 legislative session -- duties of
superintendent of public instruction and department of revenue. (1) Following the conclusion of the 2025
legislative session and no later than May 15, 2025, the department of revenue shall provide to the
superintendent of public instruction an estimate of the revenue in excess of $441.624 million expected to be
generated by the county and statewide school equalization levies under 20-9-331, 20-9-333, and 20-9-360 in
fiscal year 2026.
(2) If the amount reported under subsection (1) is greater than $0 and less than $24.5 million, the
superintendent shall:
(a) leave the guaranteed tax base multipliers under 20-9-366, as amended by [this act],
unadjusted; and
(b) increase the school transportation mileage rates in 20-10-141(2)(a) and (2)(b), as amended by
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[this act], by the same percentage, not to exceed 200%, to rates that result in an increase in the distribution of
total state transportation reimbursements to school districts in fiscal year 2026 equal to the amount reported
under subsection (1) of this section. Adjustments to the rates made under this subsection (2)(b) remain in effect
in subsequent fiscal years.
(3) If the amount reported under subsection (1) is equal to or greater than $24.5 million, the
superintendent shall:
(a) increase the school transportation mileage rates pursuant to subsection (2)(b); and
(b) subtract $24.5 million from the amount reported under subsection (1) and use the remainder for
the calculations in subsection (4).
(4) Using the amount determined under subsection (3)(b), the superintendent of public instruction
shall calculate:
(a) first, an increase in the multiplier used in calculating the statewide mill value per elementary
and high school ANB for retirement purposes under 20-9-366, as amended by [this act], for fiscal year 2026
that results in an increase in the amount of guaranteed tax base aid for retirement distributed to counties in
fiscal year 2026 that is equal to the amount determined under subsection (3)(b), not to exceed $7.7 million;
(b) then, if money remains, an increase in the multiplier used in calculating the statewide
elementary and high school guaranteed tax base ratios used for funding BASE budgets under 20-9-366, as
amended by [this act], for fiscal year 2026 that results in an increase in the amount of guaranteed tax base aid
distributed to school districts in fiscal year 2026 that is equal to the amount remaining, not to exceed $17.9
million.
Section 21. Codification instruction. [Section 19] is intended to be codified as an integral part of
Title 20, chapter 9, part 3, and the provisions of Title 20, chapter 9, part 3, apply to [section 19].
Section 22. Coordination instruction. If both House Bill No. 2 and [this act] are passed and
approved, then:
(1) the appropriations for "Transportation Aid" in House Bill No. 2 for fiscal year 2026 and fiscal
year 2027 must be increased to align with the adjustments made to school transportation mileage rates by the
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superintendent of public instruction under [section 20 of this act] but the increases may not result in a
"Transportation Aid" appropriation exceeding $36.5 million for either fiscal year; and
(2) the general fund appropriation for "K-12 BASE Aid" in House Bill No. 2 for fiscal year 2026
must be increased in accordance with the adjustments made by the superintendent of public instruction under
[section 20 of this act] but the increase may not exceed $25.6 million.
Section 23. Coordination instruction. If both House Bill No. 156 and [this act] are passed and
approved, then:
(1) [sections 8 and 9 of this act], amending 20-9-367 and 20-9-368, terminate June 30, 2026; and
(2) effective July 1, 2026, [section 19(2) of this act] must be replaced with:
"(2) After completing the analysis under subsection (1) and by the May 1 deadline for finalizing
guaranteed tax base aid ratios under 20-9-369, the office of public instruction shall annually adjust the
guaranteed tax base multipliers and calculations outlined in sections 20-9-366 through 20-9-368 to prevent any
statewide increase in property taxes due to the combined effects of reappraisal and the standard guaranteed
tax base aid formulas supporting the countywide levy for BASE budget funding support and the countywide
school retirement funds budgets of counties."
Section 24. Effective date. [This act] is effective on passage and approval.
Section 25. Applicability. [This act] applies to school district budgeting and funding distributions for
school fiscal years beginning on or after July 1, 2025.
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I hereby certify that the within bill,
HB 483, 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. 483
INTRODUCED BY C. SPRUNGER, W. GALT, S. NOVAK, L. MUSZKIEWICZ, M. NIKOLAKAKOS, P.
ELVERUM, C. SCHOMER, C. COCHRAN, E. TILLEMAN, M. BERTOGLIO, G. HUNTER, L. JONES, W.
MCKAMEY, D. FERN, M. YAKAWICH, S. FITZPATRICK, K. WALSH, R. MINER, B. BARKER, L. BREWSTER,
J. FITZPATRICK, G. HERTZ, G. PARRY, L. REKSTEN, M. ROMANO, M. THANE, J. DARLING, V. MOORE
AN ACT GENERALLY REVISING SCHOOL FUNDING LAWS RELATED TO PROPERTY TAXES; REQUIRING
THE OFFICE OF PUBLIC INSTRUCTION AND THE DEPARTMENT OF REVENUE TO COLLABORATE AND
MITIGATE THE IMPACTS OF REAPPRAISAL ON SCHOOL PROPERTY TAXES; PROVIDING THAT THE
STATE AND COUNTY SCHOOL EQUALIZATION MILLS AND VOCATIONAL-TECHNICAL EDUCATION MILLS
ARE FIXED AMOUNTS; PROVIDING THAT SCHOOL LEVIES ARE NOT SUBJECT TO SECTION 15-10-420,
MCA; REVISING THE PROPERTY TAX RELIEF MECHANISMS WITHIN THE SCHOOL EQUALIZATION AND
PROPERTY TAX REDUCTION ACCOUNT; CONTINGENT ON PROPERTY TAX LEGISLATION ENACTED,
INCREASING GUARANTEED TAX BASE MULTIPLIERS FOR FISCAL YEAR 2026 TO PROTECT PROPERTY
TAXPAYERS; CONTINGENT ON PROPERTY TAX LEGISLATION ENACTED, LOWERING PROPERTY
TAXES BY INCREASING THE ON-SCHEDULE REIMBURSEMENT RATES FOR SCHOOL
TRANSPORTATION; REVISING THE STATE-COUNTY SHARE OF ON-SCHEDULE REIMBURSEMENTS
FOR SCHOOL TRANSPORTATION; REVISING DEFINITIONS; AMENDING SECTIONS 15-10-420, 20-9-306,
20-9-331, 20-9-333, 20-9-336, 20-9-360, 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, 20-10-146, 20-25-439, AND 90-6-403, MCA; AND PROVIDING AN IMMEDIATE
EFFECTIVE DATE AND AN APPLICABILITY DATE.