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2007
LEGISLATIVE SESSION
WEEK
FIFTEEN
(April 8,
2007 – April 14, 2007)
During Week Fifteen of the 2007 Legislative Session,
I followed the proposed legislation listed below:
HB 463: "AN ACT REVISING NEW BUSINESS PROPERTY TAX
INCENTIVES; CREATING PROPERTY TAX INCENTIVES FOR NEW AND EXPANDING BUSINESS
ENTERPRISE PROPERTY; ALLOWING STATE AND LOCAL GOVERNMENT TAX ABATEMENTS FOR NEW
AND EXPANDING BUSINESS ENTERPRISE PROPERTY; REMOVING NEW INDUSTRIAL PROPERTY
FROM CLASS FIVE PROPERTY; ELIMINATING CERTAIN PROVISIONS RELATED TO A MAJOR
INDUSTRIAL FACILITY; RESTRICTING THE APPLICATION OF THE PROPERTY TAX ABATEMENT
FOR NEW INDUSTRIAL PROPERTY; ELIMINATING THE PERSONAL PROPERTY TAX INCENTIVE
FOR VALUE ADDED-MANUFACTURING; AMENDING SECTIONS 15-2-302, 15-6-134, 15-6-135,
15-24-1401, 20-1-208, AND 90-6-205, MCA; REPEALING SECTIONS 15-6-192,
15-16-201, 15-24-2401, 15-24-2402, 15-24-2403, 15-24-2404, 15-24-2405, AND
20-9-407, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE
APPLICABILITY DATE."
As
explained by the sponsor of this proposed legislation, the purpose of this bill
is to provide enhanced economic development opportunities to attract businesses
to locate in
HB 222: "AN ACT PROVIDING FUNDING TO THE DEPARTMENT OF
NATURAL RESOURCES AND CONSERVATION TO CONTRACT WITH AN ENTITY TO CONDUCT AN
ECONOMIC ANALYSIS OF THE VALUE OF IRRIGATED AGRICULTURE IN MONTANA; REQUIRING A
REPORT; PROVIDING AN APPROPRIATION; AND PROVIDING AN EFFECTIVE DATE."
This bill would provide $200,000.00 of
General Fund money to the Department of Natural Resources and Conservation for
the completion of a statewide economic assessment of the value of irrigated
agriculture to the economy of
HB 529: "AN ACT REDUCING THE TAX RATE FOR CLASS EIGHT
BUSINESS EQUIPMENT; REVISING THE EXEMPTION AMOUNT OF CLASS EIGHT PROPERTY;
PROVIDING FOR THE ALLOCATION OF EXEMPT PROPERTY BY LOCATION; PROVIDING A
REIMBURSEMENT TO LOCAL GOVERNMENTS AND TAX INCREMENT FINANCING DISTRICTS UNDER
THE ENTITLEMENT SHARE PAYMENT AND TO SCHOOL DISTRICTS UNDER THE SCHOOL DISTRICT
BLOCK GRANTS FOR THE LOSS OF CLASS EIGHT AND CLASS TWELVE PROPERTY TAX REVENUE;
PROVIDING A STATUTORY APPROPRIATION; AMENDING SECTIONS 7-1-2111, 15-1-121,
15-6-138, 15-6-219, 15-8-301, 15-10-420, 17-7-502, AND 20-9-406, AND 20-9-630,
MCA; AND PROVIDING A DELAYED EFFECTIVE DATE AND AN APPLICABILITY DATE."
This proposed legislation reduces the tax on Class
Eight property from 3% to 2% and increases the amount of Class Eight property
that is exempt from property tax from $20,000 to $100,000. Under this bill, all individuals or business
entities get the first $100,000 in market value of class tax 8 property
exempted. Under current law, only persons and business entities with $20,000 or
less in class 8 property are eligible for an exemption.
Class Eight property includes:
(a)
All agricultural implements and equipment that are not exempt under 15-6-207 or
15-6-220;
(b)
All mining machinery, fixtures, equipment, tools that are not exempt under
15-6-219, and supplies except those included in class five 15-6-135;
(c)
All oil and gas production machinery, fixtures, equipment, including pumping
units, oil field storage tanks, water storage tanks, water disposal injection
pumps, gas compressor and dehydrator units, communication towers, gas metering
shacks, treaters, gas separators, water flood units, gas boosters, and similar
equipment that is skidable, portable, or movable, tools that are not exempt
under 15-6-219, and supplies except those included in class five 15-6-135;
(d)
All manufacturing machinery, fixtures, equipment, tools, except a certain value
of hand-held tools and personal property related to space vehicles, ethanol
manufacturing, and industrial dairies and milk processors as provided in
15-6-220, and supplies except those included in class five 15-6-135;
(e)
All goods and equipment that are intended for rent or lease, except goods and
equipment that are specifically included and taxed in another class;
(f)
Special mobile equipment as defined in 61-1-101;
(g)
Furniture, fixtures, and equipment, except that specifically included in
another class, used in commercial establishments as defined in this section;
(h)
X-ray and medical and dental equipment;
(i)
Citizens’ band radios and mobile telephones;
(j)
Radio and television broadcasting and transmitting equipment;
(k)
Cable television systems;
(l)
Coal and ore haulers;
(m)
Theater projectors and sound equipment; and
(n)
All other property that is not included in any other class in this part, except
that property that is subject to a fee in lieu of a property tax.
As proposed, this bill would not reduce the amount of
taxes collected by the county because there is a provision that would reimburse
the counties, from the State General Fund. I supported HB this proposed
legislation.
HB 512: "AN ACT APPROPRIATING MONEY TO THE DEPARTMENT OF
COMMERCE FOR FINANCIAL ASSISTANCE TO LOCAL GOVERNMENT INFRASTRUCTURE PROJECTS
THROUGH THE TREASURE STATE ENDOWMENT PROGRAM; AUTHORIZING GRANTS FROM THE
TREASURE STATE ENDOWMENT STATE SPECIAL REVENUE ACCOUNT; PLACING CONDITIONS UPON
GRANTS AND FUNDS; APPROPRIATING MONEY TO THE DEPARTMENT OF COMMERCE FOR
EMERGENCY GRANTS; APPROPRIATING MONEY TO THE DEPARTMENT OF COMMERCE FOR
PRELIMINARY ENGINEERING GRANTS; APPROPRIATING MONEY FROM THE TREASURE STATE
ENDOWMENT REGIONAL WATER SYSTEM STATE SPECIAL REVENUE ACCOUNT TO THE DEPARTMENT
OF NATURAL RESOURCES AND CONSERVATION FOR FINANCIAL ASSISTANCE TO REGIONAL
WATER AUTHORITIES FOR REGIONAL WATER PROJECTS; TERMINATING A PRIOR TREASURE
STATE ENDOWMENT GRANT; AMENDING SECTION 1, CHAPTER 435, LAWS OF 2001; AND
PROVIDING EFFECTIVE DATES."
This proposed legislation would appropriate
approximately $15.7 million of General Funds to finance the remainder the
infrastructure grant applications through the Treasure State Endowment Program
(TSEP) that are not included in the initial funding in HB 11 (Treasure State
Endowment Appropriations) through the Long-range Planning Committee. The
HB 406: "AN ACT EXPANDING ACCESS TO HEALTH CARE SERVICES
BY ESTABLISHING A GRANT PROGRAM FOR COMMUNITY HEALTH CENTERS; CREATING AN
ADVISORY GROUP; REQUIRING A REPORT TO THE LEGISLATURE; TRANSFERRING GENERAL
FUND MONEY; PROVIDING AN APPROPRIATION; AND PROVIDING AN EFFECTIVE DATE."
The purpose of this proposed
legislation is described in the title of the bill. I supported this proposed legislation.
HB 371: "AN ACT PROVIDING THE MONTANA MANUFACTURING
EXTENSION CENTER AT MONTANA STATE UNIVERSITY-BOZEMAN WITH APPROPRIATIONS FOR A
DEMONSTRATION CONSTRUCTION PROJECT REGARDING ECONOMIC DEVELOPMENT CLUSTERING
AND FOR AN EXTENSION OF COVERAGE AND APPLICATION OF THE FEDERALLY FUNDED
WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT (WIRED) PROPOSAL;
PROVIDING A LIMIT ON ADMINISTRATIVE COSTS; AND PROVIDING AN EFFECTIVE
DATE."
This proposed legislation would appropriate $1.5
million from the General Fund. Of this amount, $1.0 million would be used to construct
a “demonstration construction project regarding economic development clustering
. . .” and; $500,000 for an extension of the coverage and application of
the federally funded Workforce Innovation in Regional Economic Development
(WIRED). (In simpler terms, a demonstration construction project means that, a
yet to be selected community, most likely Kalispell, Missoula, Butte, Great
Falls, Bozeman or Billings, would get $1milion from the State General Fund to
construct/renovate a building that would house all of the economic development
organizations/programs in that specific area, i.e. “economic development
clustering.”) I monitored this proposed legislation.
HB 49: "AN ACT REQUIRING THE EDUCATION AND LOCAL
GOVERNMENT INTERIM COMMITTEE TO APPOINT A SUBCOMMITTEE TO CONDUCT A STUDY OF
LOCAL GOVERNMENT SPECIAL PURPOSE DISTRICTS; SPECIFYING THE MEMBERSHIP OF THE
SUBCOMMITTEE; PROVIDING AN APPROPRIATION; AND PROVIDING AN IMMEDIATE EFFECTIVE
DATE."
I monitored this proposed
legislation.
HB 533: "AN ACT INCREASING THE COAL SEVERANCE TAX
ALLOCATION TO THE OIL, GAS, AND COAL NATURAL RESOURCE ACCOUNT; AMENDING SECTION
15-35-108, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY
DATE."
This proposed legislation would increase the funding
to the Oil, Gas, and Coal Natural Resource Account from 2.9% to 3.5%. These funds originate from the Coal Severance
Tax and are to be used to offset coal mining and coal development related
impacts to the coal impacted counties.
These funds are made available through grants through the Coal Board. Please
note that 50% of the taxes collected by the Coal Severance Tax are allocated to
the Coal Tax Trust Fund. The other 50%
are allocated to other accounts/programs.
The Oil, Gas, and Coal Natural Resource Account is one of those
accounts. Other accounts are: the
Long-Range Building Program; basic library services and the Growth Through
Agriculture Program; parks acquisition or management; renewable resource loan
debt service fund; and the protection of works of art in the capitol and for
other cultural or aesthetic projects. I provided testimony in support of this
proposed legislation.
SB 550: "AN ACT REVISING THE LAWS GOVERNING LOCAL
GOVERNMENT STUDY COMMISSIONS; AUTHORIZING THE IMPOSITION OF A MILL LEVY AND
PROVIDING FOR AN EXCEPTION FROM THE MILL LEVY LIMITS FOR A LEVY FOR FUNDING
LOCAL GOVERNMENT STUDY COMMISSIONS; CLARIFYING THE PROCEDURES FOR PROPOSALS FOR
ALTERNATIVE FORMS OR PLANS OF GOVERNMENT MADE BY PETITION OR BY A STUDY
COMMISSION; PROVIDING THAT ELECTED OFFICIALS REMAIN IN OFFICE UNLESS THE NEW
FORM OR PLAN ELIMINATES THE OFFICE FOR WHICH THEY WERE ELECTED; AND AMENDING
SECTIONS 7-3-122, 7-3-141, 7-3-142, 7-3-149, 7-3-151, 7-3-152, 7-3-153,
7-3-155, 7-3-156, 7-3-157, 7-3-158, 7-3-160, 7-3-161, 7-3-175, 7-3-178,
7-3-184, 7-3-187, 7-3-192, 7-3-193, AND 15-10-420, MCA."
The main purpose of this proposed legislation was to
provide for a funding mechanism for financing a Local Government Study
Commission, if the local government determined that a Study Commission needed
to be formed. I monitored this proposed
legislation.
SB 567: "AN ACT CREATING ALLOCATING AND TRANSFERRING
FUNDS FROM THE OIL AND NATURAL GAS PRODUCTION TAX TO THE OIL, GAS, AND COAL
NATURAL RESOURCE ACCOUNT; AMENDING SECTION 15-36-331, MCA; PROVIDING A
CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE."
This proposed legislation has been extensively
amended from the original version of the bill.
The proposed law, as amended, will redirect 1.25% of
revenue from the counties’ allocation of oil and natural gas production taxes
to the Oil, Gas and Coal Natural Resource State Special Revenue Account.
Revenue distributed into this account will be used by the Coal, Oil, Gas and
Energy Development Impact Board created in HB 798 to mitigate energy
development impact to local government units.
The purpose of this legislation is to raise a minimum of $1,000,000.00
per year for the Oil, Gas and Coal Natural Resource State Special Revenue
Account. If that amount cannot be attained by using the 1.25% figure, the Coal,
Gas and Energy Development Impact Board will determine a percentage that, when
applied to all county’s allocations, will result in the deposit of $1 million
into the account. This money will be
made available on a grant basis to local governments to mitigate future energy
development impacts to their infrastructure due to energy development as
outlined in HB 798.
As outlined in the fiscal note, the fiscal impact to
Based on the Oil and Natural Gas Production Tax
Revenues for FY 2006, the next six highest counties are: Fallon at $256,229.00;
Phillips at $64,575.00; Sheridan at $62,492.00; Blaine at $62,009.99; Hill at
$53,718; and
I presented testimony in opposition to SB 567 because
there is a more equitable and fair way to fund this program as outlined in the
provisions of HB 798. (HB 798 is described below.) HB 798, if passed, would fund this program by
depositing 25% of Federal Mineral Leasing Funds into the Oil, Gas and Coal
Natural Resource Account for energy development impacts beginning July 1,
2009. HB 798 would also transfer $10
million from the General Fund to the Oil, Gas and Coal Natural Resource Account
in FY 2008 and FY 2009.
HB 798: "AN ACT REVISING ENERGY DEVELOPMENT IMPACT LAWS;
CHANGING THE NAME OF THE COAL BOARD TO THE COAL, OIL, GAS, AND ENERGY
DEVELOPMENT IMPACT BOARD; REVISING THE BOARD'S MEMBERSHIP; ALLOCATING FUNDS
FROM FEDERAL LEASING FUNDS; AUTHORIZING THE COAL, OIL, GAS, AND ENERGY DEVELOPMENT
IMPACT BOARD TO ISSUE GRANTS TO ASSIST LOCAL GOVERNMENTS WITH ENERGY
DEVELOPMENT IMPACTS; PROVIDING A STATUTORY APPROPRIATION; CLARIFYING THE BASIS
AND PRIORITIES FOR AWARDING GRANTS; CREATING THE OIL, GAS, AND ENERGY
GENERATION LOCAL GOVERNMENT INFRASTRUCTURE IMPACT ASSISTANCE ACT; PROVIDING THE
BOARD WITH RULEMAKING AUTHORITY; TRANSFERRING MONEY FROM THE GENERAL FUND;
AMENDING SECTIONS 2-15-1821, 17-3-240, 17-7-502, 90-6-203, 90-6-204, 90-6-205,
90-6-206, 90-6-207, AND 90-6-1001, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN
APPLICABILITY DATE."
This proposed legislation could benefit
HB 823: "AN ACT DIRECTING OIL AND NATURAL GAS PRODUCTION
TAX REVENUE TO THE OIL, GAS, AND COAL NATURAL RESOURCE ACCOUNT; ALLOCATING
FUNDS FROM THE ACCOUNT TO COUNTIES FOR THE MAINTENANCE OF ROADS AND BRIDGES;
CLARIFYING THE USE OF COAL SEVERANCE TAX FUNDS DEPOSITED IN THE ACCOUNT;
AMENDING SECTIONS 15-36-331 AND 90-6-1001, MCA; AND PROVIDING AN IMMEDIATE
EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE."
This proposed legislation redirects 2.0% of oil and
natural gas production taxes from the general fund to the Oil, Gas and Coal
Natural Resource State Special Revenue Account. These funds are to be used to
maintain roads and bridges in the counties that receive the funds. I provided
testimony in support of this proposed legislation.