Montana § 7-6-620 - Local Government Large Taxpayer Reserve Account -- Expenditure Restrictions

§ 7-6-620. Local Government Large Taxpayer Reserve Account -- Expenditure Restrictions

Local government large taxpayer reserve account -- expenditure restrictions. (1) The governing body of a city, county, or consolidated city-county may establish a large taxpayer reserve account. (2) A city, county, or consolidated city-county that establishes an account pursuant to this section shall deposit annually 10% of revenue generated from newly taxable property in classes other than class four in the large taxpayer reserve account. (3) A city, county, or consolidated city-county may use a portion of the revenue from newly taxable property generated under subsection (2) to offset any required payment to the department for technology enhancing the assessment of newly taxable property. (4) Subject to a payment made pursuant to subsection (3), money deposited in the account by the city, county, or consolidated city-county must remain in the account and may not be appropriated by the governing body until a large taxpayer has permanently ceased operations or experienced a significant decrease in taxable value. (5) If the circumstances described in subsection (4) occur, the governing body of the city, county, or consolidated city-county shall use the funds in the account to: (a) pay for outstanding capital project bonds or other expenses incurred prior to the cessation of operations or a significant decrease in taxable value; (b) for up to 10 years, decrease mill levies of the city, county, or consolidated city-county that are directly impacted by the cessation of operations or a significant decrease in taxable value; (c) attract new industry to the impact area; (d) provide cash incentives for expanding the employment base of the area impacted by the cessation of operations or a significant decrease in taxable value; or (e) invest in infrastructure directly related to new development or housing. (6) Except as provided in subsection (5)(b), money held in the account may not be considered as cash balance for the purpose of reducing mill levies. (7) (a) Except as provided in subsection (7)(b), money in the account must be invested as provided by law. Interest and income from the investment of funds in the account must be credited to the account. (b) The city, county, or consolidated city-county may use investment earnings on the account not subject to subsection (3) for the purposes provided in subsection (5). (8) As used in this section, the following definitions apply: (a) "Large taxpayer" means an individual or entity with taxable value for all property owned by the individual or entity within the city, county, or consolidated city-county that places the individual or entity among the 20% of taxpayers with the largest taxable value in the city, county, or consolidated city-county. (b) "Significant decrease in taxable value" means a decrease in taxable value for property classes other than class four property that equals 25% or more of the prior year's taxable value.