Montana Law Article VIII - REVENUE AND FINANCE
Montana Constitution – Article VIII: Revenue and Finance
Article VIII of the Montana Constitution governs the collection, management, and spending of public funds, ensuring transparency, fairness, and fiscal responsibility in state finances.
Here is a section-by-section summary of Article VIII:
Section 1 – Tax Purposes Only
Taxes can only be levied for public purposes.
Section 2 – Tax Power in Legislature
Only the Legislature has the authority to impose taxes.
Section 3 – Property Tax Administration
The state must ensure equal valuation of property for tax purposes.
Property must be assessed in a uniform and equitable manner.
Section 4 – Equal Valuation
All property subject to taxation must be equally valued to ensure fairness.
Section 5 – Property Tax Exemptions
The Legislature may grant tax exemptions for:
Educational institutions
Religious organizations
Charities
Government property
Section 6 – Highway Revenue
Revenue from motor vehicle and fuel taxes can only be used for:
Highway construction
Highway maintenance
Enforcement of traffic laws
Section 7 – Balanced Budget
The state cannot spend more money than it has — expenditures must not exceed revenue.
Section 8 – Budgeting and Appropriations
The Governor must submit a balanced budget.
The Legislature must adopt appropriation bills based on available revenue.
Section 9 – Borrowing
The state can borrow money, but only under specific limitations and with voter approval for long-term debt.
Section 10 – State Debt
The state must manage debt responsibly and may not exceed a certain debt limit without voter consent.
Section 11 – Investment of Public Funds
Public funds must be invested prudently to ensure safety, liquidity, and return.
The Board of Investments manages the state's investment program.
Section 12 – Retirement Fund Investment
Public employee retirement funds must be securely invested, and used exclusively for retirement purposes.
Section 13 – Trust Funds
Trust funds must be used only for their intended purpose.
Misuse of trust funds is prohibited.
This article emphasizes fiscal discipline, fair taxation, and responsible public finance management in Montana.
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