42.19.1407 DETERMINATION OF BASE AND INCREMENTAL TAXABLE VALUES OF URBAN RENEWAL DISTRICTS (URD) OR TARGETED ECONOMIC DEVELOPMENT DISTRICTS (TEDD)
(1) The department will determine the:
(a) base taxable value for a URD or TEDD as the taxable value of all property located within the district, exclusive of any Title 15, chapter 24, MCA, locally approved abatement reductions, as of January 1 of the base year established in accordance with ARM 42.19.1403(6) and 42.19.1404(6); and
(b) incremental taxable value by subtracting the base taxable value identified in (1)(a) from the total taxable value of all property within the district.
(2) The incremental value of a district cannot be less than zero.
(3) The department will report the base, actual, and incremental taxable values to all affected taxing jurisdictions by the first Monday of August each year when the department certifies values pursuant to 15-10-202, MCA.
(4) A URD or TEDD may include one or more levy districts. If a URD or TEDD includes more than one levy district, the department will apportion the base taxable value and the incremental taxable value between the levy districts by apportioning the base taxable value and the incremental taxable value to each levy district according to its contribution to the total taxable value of the URD or TEDD.
(5) A local government that amends the boundaries or makes changes within a valid URD or TEDD, pursuant to the provisions of Title 7, chapter 15, parts 42 and 43, MCA, shall follow the process described in ARM 42.19.1403 or 42.19.1404.
(a) In cases where a boundary amendment removes property from an existing URD or TEDD:
(i) the removed property shall be considered newly taxable pursuant to 15-10-420, MCA;
(ii) the base year of the original URD or TEDD will not change;
(iii) the total value of the URD or TEDD will be reduced by the value of the property that has been removed from the district. The value of the property being removed will be the value determined by the department for ad valorem tax purposes as of January 1 of the year in which the department certifies the amendment; and
(iv) The reduced base value of the URD or TEDD will be determined by the following formula:
(b) In cases where a URD or TEDD boundary amendment adds new property to an existing URD or TEDD:
(i) the base year and base taxable value of the properties located within the original URD or TEDD will not change;
(ii) the base taxable value of the property being added to the URD or TEDD by the boundary amendment will be the actual taxable value determined by the department for ad valorem tax purposes as of January 1 of the year in which the department certifies the amendment;
(iii) the base taxable value calculated pursuant to (ii) of the property being added to the URD or TEDD will be added to the existing base taxable value of the URD or TEDD to create the new base taxable value that shall be used to calculate the incremental taxable value of the URD or TEDD; and
(iv) the incremental value of the URD or TEDD after the boundary amendment will be calculated using the new base taxable value determined in (iii).
History: 15-1-201, MCA; IMP, 7-15-4284, 7-15-4285, 15-10-202, 15-10-420, MCA; NEW, 2008 MAR p. 1490, Eff. 7/18/08; AMD, 2014 MAR p. 1104, Eff. 5/23/14; AMD, 2016 MAR p. 1968, Eff. 10/29/16; AMD, 2019 MAR p. 345, Eff. 3/30/19.