Resolution #2011-3 Tax Increment Financing

Tax increment financing has been one of the most successful economic and community development programs in Montana for nearly 30 years.  A bill to remove the 95-mill state school equalization levy from prospective increment districts is likely to be introduced in the 2011 Legislature.  If this bill is passed, it will eliminate tax increment financing as an economic development strategy at a time when the unemployment rate in Montana is nearly 8%.   Other changes in the Tax Increment Financing Laws, specifically a revision of the term “blight” in the urban renewal section, are also likely to be considered by the 2011 Legislature. 

Be it resolved that the League of Cities and Towns will oppose any legislation to exempt state levies or otherwise restrict the financing and operation of tax increment districts. 

Be it further resolved that the League of Cities and Towns will support legislation to clarify and update Tax Increment Financing statutes to promote public support for understanding of a vital economic development strategy.