Montana Code 7-6-1506. Use of resort community tax revenue — bond issue — pledge
7-6-1506. Use of resort community tax revenue — bond issue — pledge. (1) Unless otherwise restricted by the voter-approved tax authorization provided for in 7-6-1504, a resort community or a resort area district may appropriate and expend revenue derived from a resort tax for any activity, undertaking, or administrative service that the municipality or resort area district is authorized by law to perform, including costs resulting from the imposition of the tax.
Terms Used In Montana Code 7-6-1506
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Property: means real and personal property. See Montana Code 1-1-205
- Resort area: means an area that:
(a)is an unincorporated area and is a defined contiguous geographic area;
(b)has a population of less than 2,500 according to the most recent federal census;
(c)derives more than 50% of its economic well-being from businesses catering to the recreational and personal needs of persons traveling to or through the area for purposes not related to their income production and excluding economic activity from health care, schools, government, and other services that primarily benefit residents; and
(d)has been designated by the department of commerce as a resort area not more than 2 years prior to its establishment by the county commissioners as provided in 7-6-1508. See Montana Code 7-6-1501
- Resort area district: means a district created under 7-6-1532 through 7-6-1536, 7-6-1539 through 7-6-1544, 7-6-1546 through 7-6-1548, and 7-6-1550 that has been established as a resort area under 7-6-1508. See Montana Code 7-6-1501
- Resort community: means a community that:
(a)is an incorporated municipality;
(b)has a population of less than 5,500 according to the most recent federal census;
(c)derives more than 50% of its economic well-being related to current employment from businesses catering to the recreational and personal needs of persons traveling to or through the municipality for purposes not related to their income production and excluding economic activity from health care, schools, government, and other services that primarily benefit residents; and
(d)has been designated by the department of commerce as a resort community not more than 2 years before the petition of the electors or resolution of the governing body. See Montana Code 7-6-1501
(2)A resort community may issue bonds to provide, install, or construct any of the public facilities, improvements, or undertakings authorized under 7-7-4101, 7-7-4404, and 7-12-4102.
(3)Bonds issued under this section must be authorized by a resolution of the governing body, stating the terms, conditions, and covenants of the municipality or resort area district as the governing body considers appropriate. The bonds may be sold at a discount at a public or private sale.
(4)A resort community may pledge for repayment of bonds issued under this section the revenue derived from a resort tax, special assessments levied for and revenue collected from the facilities, improvements, or undertakings for which the bonds are issued, and any other source of revenue authorized by the legislature to be imposed or collected by the resort community. The bonds do not constitute debt for purposes of any statutory debt limitation, provided that in the resolution authorizing the issuance of the bonds, the municipality determines that the resort tax revenue, special assessments levied for and revenue from the facilities, improvements, or undertakings, or other sources of revenue, if any, pledged to the payment of the bonds will be sufficient in each year to pay the principal and interest on the bonds when due.
(5)Bonds may not be issued pledging proceeds of the resort tax for repayment unless the municipality in the resolution authorizing issuance of the bonds determines that in any fiscal year the annual revenue expected to be derived from the resort tax, less the amount required to reduce property taxes pursuant to 7-6-1507, equals at least 125% of the average amount of the principal and interest payable from the resort tax revenue on the bonds and any other outstanding bonds payable from the resort tax except any bonds to be refunded upon the issuance of the proposed bonds.