It is the intent of the Montana Association of Counties
to support legislation to change tax law enabling local and state
governments to pursue and recoup abated taxes.
WHEREAS, tax abatements are a useful economic development tool for local governments; and
WHEREAS, promises of high-paying jobs are usually made whenever tax abatements are requested; and
WHEREAS, the local governments do not currently have the ability to recoup abated revenue that is lost when those promises of high-paying jobs are not met; and
WHEREAS, local governments are interested in creating partnerships with private entities.
NOW, THEREFORE, BE IT RESOLVED that the Montana Association of Counties supports the passage of legislation in the 2005 Montana State Legislature, known as “Clawback Provisions” in tax law, enabling state and local governments to pursue and recoup those taxes that were abated when promises made are not delivered to the affected community.
SPONSOR: Lewis & Clark County Commission, Districts 8, 9 & 12
RECOMMENDATION: Do Pass
PRIORITY: High
REFERRED TO: MACo Taxation, Finance and Budget Committee
ADOPTED: Annual Conference, Missoula, MT, September 29, 2004