Lawmakers hear case for dollar-based local levies

HELENA — Lawmakers are considering a bill that would make local agencies ask voters for a specific dollar amount of property tax increases on ballot levies rather than rely on mills — a property tax-based increase that can help account for inflation and changes in property values.

Local levies are often used for public services like libraries or fire stations. The bill would still allow mills for public schools.

Supporters of House Bill 20 told lawmakers in the House Taxation Committee on Tuesday Jan. 7 that the change would stabilize local property taxes and clear up confusing language.

Bob Story, executive director of the Montana Taxpayers Association, said the bill helps voters better understand the transfer of taxpayer dollars.

“You shouldn’t allow governments to profit from growth in value due to reappraisals and inflation,” Story said. “If they want more money, they should ask the voters for more money.”

Executive director of the Montana League of Cities and Towns Kelly Lynch opposed the bill at the hearing, saying mills are necessary for local governments to fund growing communities.

“We have to retain those police officers, we have to retain those firemen over time,” Lynch said. “We have to pay for maintenance and operation of those facilities over time — a set dollar amount does not allow us to do that.”

Lynch said the League will support the bill if the dollar amounts are allowed to be fully adjusted for inflation. Currently, the bill only allows adjustment to half the rate of inflation.

Clayton Murphy is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu.