Libby Park over its limit

There is a fourth tax-receiving district that has exceeded its voter-approved mill limit in Lincoln County.

The 1986 document that created Libby Park District states the district “may not levy more than 0.5 mills.” However, the district has received mills beyond its limit for years. This year, the district received 1.01 mills, for total revenue of $13,798.62. In the last 11 years, Libby Park District has received $53,919.56 beyond what its voter-approved limit would allow. Numbers prior to the 2003-2004 fiscal year were not readily available. Mill values change every year in tax-receiving districts.

Since The Western News began an investigation into county taxation practices it has been revealed that Troy Area Dispatch District, Eureka Dispatch District and Troy Park and Recreation District also have voter-approved mill limits that have been exceeded for more than a decade. The four districts have received approximately $1.6 million beyond their limits.  

State tax law leaves a gray area about whether districts with voter-approved limits can float, or fluctuate based on changes in taxable value. While there is no case law or attorney general opinion on the issue, government officials involved in the creation of floatable mills say the intent of the law is not being met in Lincoln County.

“The intent was to allow local governments to maintain spending if the tax base dropped,” Montana Taxpayers Association President Bob Story said. “If you wanted to increase spending, you needed a vote to do that.”

Story was serving as state representative for Stillwater County when he helped craft the legislation that created floating mills. Montana Association of Counties executive director Harold Blattie was Stillwater county commissioner at the time and also helped craft legislation.

A press conference to address the county’s taxation issues will be held 10 a.m. Friday in the Ponderosa Room of City Hall.