Representative David Bedey
Effective Date: Applies to fiscal years beginning on or after July 1, 2026
HB 156 amends sections 7-15-4291, 15-1-402, 20-3-209, 20-3-324, 20-5-323, 20-5-324, 20-6-702, 20-9-101, 20-9-104, 20-9-131, 20-9-141, 20-9-212, 20-9-235, 20-9-306, 20-9-308, 20-9-310, 20-9-336, 20-9-366, 20-9-367, 20-9-368, 20-9-369, & 20-9-515, MCA.
As a summary HB 156 replaces the school district BASE levy with a countywide levy to support the BASE budgets of school districts. The calculation of GTB is applied to the countywide base levy along with adjustments to tuition, non-levy revenues, and modifies the duties of trustees, district clerks, county superintendents, and county treasures to align with these amendments.
HB 156 amends section 20-9-151, MCA, adjusting language associated with calculating the number of mills to be levied on the taxable property in the county to finance the BASE funding levy. These changes constitute language cleanup.
HB 156 amends section 7-15-4291, MCA, to remove language referring to the use of TIF remittances to reduce a district’s BASE levy amount.
Section 15-1-402, MCA, or payment of property taxes or fees under protest, is amended for references to section 15-1-409, which is to be repealed because of this act.
Section 20-3-209, MCA, or the requirement to submit annual reports to the superintendent of public instruction to include the new county school fund for supporting school district BASE budgets.
Section 20-3-324, MCA, is amended to refer to the BASE funding levy requirement rather than the BASE levy.
Section 20-5-323, MCA, is modified to direct the student’s resident district to pay the district of attendance an amount equal to 20% of the over-BASE levy, from the lessor amount’s district, as tuition for the student’s out-of-district attendance.
Section 20-5-324, MCA, relates to tuition eligibility to receive state reimbursement or payments and is amended to remove language referring to estimated revenue received to the BASE of a district’s general fund to reduce BASE levy and how the estimated value is not to affect the distribution of general fund GTB.
Section 20-6-702, MCA, is amended to strike language referring to district general fund GTB.
Section 20-9-101, MCA, is modified to include the BASE budget in the list of county budget obligations.
Section 20-9-104, MCA, the general fund operating reserve is changed, removing language that would permit excess reserves to reduce the BASE funding levy requirements.
Section 20-9-131, MCA, is modified for language changes and includes county in the fixing of tax levies by both the school district and the county.
Section 20-9-141, MCA, is the computation of general fund net levy requirements. This section is amended to change the calculation of net levy requirement at the district level to the county level.
A county superintendent is to calculate the levy requirements as follows:
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- Determine the funding for the BASE area of the district’s general fund, minus the following:
- State funded BASE aid.
- Non-isolated BASE requirement under section 20-9-303, MCA.
- Unreserved fund balance re-appropriated.
- Interest earnings in the prior fiscal year.
- Any other revenues received during the fiscal year.
- Anticipated oil and gas revenue pursuant to section 20-9-310, MCA.
- Anticipated coal gross proceeds pursuant to section 15-23-703, MCA.
- The product is the BASE funding levy requirement. If the amount determined exceeds the BASE area, excess amounts are applied to reduce the over-BASE levy area.
- The over-BASE levy area to be calculated as follows:
- Any excess amount remaining after the calculation of the BASE levy area.
- Any tax credit increment funding remittance is used to reduce the over-BASE levy.
- Anticipated oil and gas revenue pursuant to section 20-9-310, MCA to reduce the over-BASE levy.
- Coal-fired generating unit closure mitigating block grant pursuant to section 20-9-638, MCA.
- Tuition payments for out-of-district pupils under sections 20-5-320, & 20-5-324, MCA.
- Subtract this total from the district’s over-BASE budget, this is the district’s over-BASE budget levy.
The county superintendent shall utilize a district's BASE funding calculated revenue requirement to determine the countywide levy for BASE funding support as described and report a district’s over-BASE budget levy amount to the county commissioners to have a levy set in accordance with 20-9-142, MCA.
If a district has an amount revenue directed to funding the district's general fund that results in an excess of revenue required to fund the district's over-BASE, the trustees of the district shall allocate that excess to another budgeted fund of the district to reduce local property taxes by the amount of the excess.
Section 20-9-212, MCA, the duties of the treasurer is amended to include, the county tax for elementary and high school district BASE funding support, to be identified as a separate county level account.
Section 20-9-235, MCA, or a section providing for the authorization of a school district investment account, is amended to use district general fund interest earnings to reduce the BASE funding requirement. This redirects these revenues from a reduction in district property taxes.
Section 20-9-306, MCA, is amended to remove language associated with guaranteed tax base aid to a school district, additionally, the definition of BASE is adjusted to refer to the county levy and county GTB. This is an adjustment from the district level definition of BASE.
Section 20-9-308, MCA, or the description of BASE budget and general fund budget limits, is amended to strike references to district level general fund GTB and district level BASE levies, replacing them with the intended county level definitions described in the bill.
Section 20-9-310, MCA, is amended to remove language associated oil and natural gas production taxes received by a district that impacts the amount of GTB a district may receive. This change reflects the adjustment of GTB to the county level from the district level.
Section 20-9-336, MCA, amends language that refers to GTB to align it with the county level calculation of GTB from that of the district level. See coordination language in HB 156, section 28 and/or the HB 483 summary.
"20-9-366. Definitions are to be amended as follows, to adjust for the county level calculations required by HB 483(2025):
(1)(a) “County elementary guaranteed tax base ratio" or "county high school guaranteed tax base ratio" for guaranteed tax base funding for the countywide levy for BASE funding support of an eligible county means the taxable valuation in the previous year of all property in the county, , divided by the district's sum of the prior year GTBA budget area areas of the elementary school districts or the high school districts in the county. The GTBA budget areas for joint districts must be prorated to each county in which a part of the district is located in the same proportion as the district ANB of the joint district is distributed by pupil residence in each county.
(2) "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.
Section 20-9-367, MCA, describes the eligibility to receive guaranteed tax base aid. Amended language concentrates on adjusting this eligibility from the district level to the county level.
Section 20-9-368, MCA, is amended to direct the amount of GTB from the district to the county level.
Section 20-9-369, MCA, or the duties of the superintendent of public instruction, amended language associated with the GTB ratio to the county from the district level.
HB 156 describes countywide levies to support BASE budgets and describes the portion of BASE not funded by state BASE aid and in consideration of isolation situations described in section 20-9-302, MCA, non-levy revenues, un-reserved fund balance reappropriated. This levy requirement is qualified for both elementary and high school settings and for districts with joint district settings.
HB 156 directs prior county level fund balance to lower the countywide level amounts before mill setting.
It is required that the county superintendent shall:
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- calculate the number of mills to be levied on the taxable property in the county to finance the BASE funding levy requirement by dividing the amount determined by the sum of:
- the amount of guaranteed tax base aid that the county will receive for each mill levied, as certified by the superintendent of public instruction; and
- the taxable valuation of the district divided by 1,000; and
- report the number of mills required to fund the BASE funding levy requirement to the county commissioners by the later of the first Tuesday in September or within 30 calendar days after receiving certified taxable values.
The county commissioners shall fix and set the countywide BASE funding levies in accordance with 20-9-142, MCA.
The county superintendent of each county shall submit a report of the revenue amounts used to establish the BASE funding levy requirements to the superintendent of public instruction on or before September 15.
The report must be completed on forms supplied by the superintendent of public instruction.
HB 156 repeals section 15-1-409, MCA, which is the exclusion of certain property subject to property tax protest, guaranteed tax base, tax refund.
HB 156 provides a transition section which states that the legislature intends this act to be fully operational in fiscal year 2027 with the first countywide levies to support BASE budgets levied in fiscal year 2027.