MontanaSB 13369th Legislature, Regular Session (2025)SenateWALLET

Revise impact fee laws

Sponsored By: Greg Hertz (Republican)

Became Law

HousingCity FinanceCounty FinanceLocal FinanceLocal Government

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Stronger studies and updates for impact fees

Local governments must prepare and approve a service area report before charging an impact fee for a facility. The report must explain its data and methods, show the fee meets the law, and be available to the public on request. The ordinance must include a schedule to update the report. Reports must set service levels, forecast needs, list capital projects, set the fee per unit, and include a budget covering at least five years that is reviewed and updated at least every five years.

Tighter limits on local impact fees

The law tightens how local impact fees are set. Fees must match a project's proportionate share and fund only long‑lived capacity (10 years or more). Costs to fix existing deficiencies and all operations and maintenance are excluded. The admin portion is capped at 5% of the total fee. Annual increases to the initial fee cannot exceed the year‑over‑year Producer Price Index for All Commodities (1982–84=100). Fees must follow GAAP and be based on actual or reasonably estimated expansion costs. Governments must count other payments from the development and cannot require a higher service level than current users unless they also pay.

More facilities can use impact fees

The law lets local governments add other types of public facilities for impact‑fee funding with a written report. Adoption needs a two‑thirds vote in cities and towns or a unanimous county board vote. It defines development to include building, renovation, and use changes that add demand, which triggers fees. Counties, cities, towns, and consolidated governments may adopt and run impact fees.

Limits on utility connection charges

A connection charge can include only the actual cost to hook up a property to a utility. It covers labor, materials, overhead, and installing meters. Local governments and utilities cannot add unrelated costs to this charge.

Sponsors & Cosponsors

Sponsor

  • Greg Hertz

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 234 • No: 156

Senate vote 4/15/2025

Do Pass

Yes: 32 • No: 18

Senate vote 4/14/2025

Do Pass

Yes: 30 • No: 14

Senate vote 4/11/2025

Do Concur

Yes: 56 • No: 43

Senate vote 4/11/2025

Do Concur

Yes: 54 • No: 45

Senate vote 2/7/2025

Do Pass

Yes: 32 • No: 17

Senate vote 2/6/2025

Do Pass

Yes: 30 • No: 19

Actions Timeline

  1. Chapter Number Assigned

    5/13/2025Senate
  2. Signed by Governor

    5/8/2025Senate
  3. Transmitted to Governor

    5/1/2025Senate
  4. Signed by Speaker

    5/1/2025House
  5. Signed by President

    4/22/2025Senate
  6. Returned from Enrolling

    4/16/2025Senate
  7. Sent to Enrolling

    4/15/2025Senate
  8. 3rd Reading Passed as Amended by House

    4/15/2025Senate
  9. 2nd Reading House Amendments Concurred

    4/14/2025Senate
  10. Returned to Senate with Amendments

    4/11/2025House
  11. 3rd Reading Concurred

    4/11/2025House
  12. 2nd Reading Concurred

    4/11/2025House
  13. Committee Report--Bill Concurred as Amended

    4/9/2025House
  14. Committee Executive Action--Bill Concurred as Amended

    4/8/2025House
  15. Hearing

    3/6/2025House
  16. First Reading

    2/10/2025House
  17. Referred to Committee

    2/10/2025House
  18. Transmitted to House

    2/7/2025Senate
  19. 3rd Reading Passed

    2/7/2025Senate
  20. 2nd Reading Passed

    2/6/2025Senate
  21. Committee Report--Bill Passed as Amended

    2/4/2025Senate
  22. Committee Executive Action--Bill Passed as Amended

    2/3/2025Senate
  23. Hearing

    1/16/2025Senate
  24. Referred to Committee

    1/15/2025Senate
  25. First Reading

    1/14/2025Senate

Bill Text

  • Enrolled

    4/15/2025

  • As Amended (Version 3)

    4/9/2025

  • As Amended (Version 2)

    2/4/2025

  • Introduced

    1/13/2025

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