Gas tax, mail ballots, university funding discussed at videoconference

A proposal to increase Montana’s gas tax for the first time in 25 years will likely pass the House again on third reading and the state Senate, Rep. Jacob Bachmeier, D-Havre, said during the weekly state legislative videoconference at a Northern Montana Hospital conference room.  

The legislation passed the House March 23 on second reading 56-44. Reps. Bachmeier and Jonathan Windy Boy, D-Box Elder, voted for it, while Jim O’Hara R-Fort Benton, and Casey Knudsen, R-Malta, voted against it. It was referred to the House Appropriations Committee, where it passed 12-10 and is scheduled for a vote on third reading today.

House Bill 473, introduced by state Rep. Frank Gardner, R-Kalispell, would raise the state gas tax by 8 cents on each gallon of gasoline and four cents on aviation fuel to pay for infrastructure upgrades.

Bachmeier  defended the proposal, saying while people might not like an increase, revenue generated will go toward a very specific purpose: infrastructure.

The bill says 57 percent, or $35 million, of the revenue would go to the Montana Department of Transportation for bridge and road projects decided on by the Montana Transportation Commission. Another 4 percent, or $2.75 million, whichever is less, would go to the Montana Highway Patrol. The remaining funds would go to a road construction and maintenance match program for local governments in Montana.

The latest draft of the bill requires localities applying for the program to provide $1 for every $20 from the state.

Montana State University-Northern Alumni Foundation Executive Director Jim Bennett asked what the future would hold for controversial projects that have been proposed in past infrastructure bills such as money to fund renovations to Romney Hall at Montana State University in Bozeman, construction of a new Montana Historical Society Museum and the construction of a veterans home in Butte.

“Do you think any of those have any chance of coming through in this biennium?” Bennett asked.

Bachmeier said while Democrats in both chambers and Senate Republicans have worked “very, very well together,” it is House Republicans who have strong opposition to state bonding to pay for infrastructure who have not been team players.

“It is my opinion that the House Republicans, if we don’t pass infrastructure bills, it will be there fault.” Bachmeier said.

In order to win the support of House Republicans, Bachmeier said Democrats might try to use rural infrastructure projects in House Bill 88 as leverage, though he did not go into any further detail.

An alternative $33 million bill that was put forth by Republicans was “a joke,” Bachmeier said. “It doesn’t do much of anything.”

He added that the Senate has put forth its own infrastructure bill which he would be inclined to support.

“I have hope that we will have infrastructure bills passed, but we will have to keep negotiating and coming up with a solution that everyone will be on board with, including House Republicans,” Bachmeier said.

Mail ballot

A week after a heated hearing in the House Judiciary Committee last week, Bachmeier said, he believes there is still hope a proposal that would give counties the option to conduct the May 25 special congressional  election by an all-mail ballot can pass the House.

“I think the message is pretty clear that Montanans want this,” said Bachmeier.

He added that even if it looks headed for defeat in the House Judiciary Committee, there are several actions that can be taken, including a blast motion that would take the bill out of committee and onto the floor or attaching it as an amendment onto another bill.

A March 25 committee meeting on the bill became so contentious, Bachmeier said, the sergeant at arms had to clear the room and demonstrators could later be heard outside chanting in support of the mail ballot.

State Sen. Russ Tempel, R-Chester, a proponent of the bill, who testified in favor of it, said things “got a little contentious” at the meeting between the committee leadership and some of those who spoke.

“It wasn’t a real healthy committee meeting, let me just put it that way,” Tempel said.

Senate Bill 305, introduced by state Sen. Steve Kirkpatrick, R-Great Falls, passed the Senate 37-13 Feb. 24. North-central Montana Sens. Tempel, Frank Smith, D-Poplar, and Mike Lang, R-Chester, voted for it.

County clerk and recorders throughout the state have advocated for a mail ballot because it would save counties money on an election they have not been able to budget for.

Republicans have been divided on the bill, with some supporting it, some saying they are worried about election fraud, others that it would increase turnout of Democratic leaning voter groups that would put Republicans at a disadvantage.

Bachmeier said he encourages people of Havre and the Hi-Line to keep writing their legislators about the issue, especially those who serve on the Judiciary Committee such as state Rep. Casey Knudsen, R-Malta.

“I am not sure where he stands on the issue, but I would encourage them to call and let them know that you are strongly in favor of that,” Bachmeier said.

University funding

Bachmeier said more money could be added to the budget for the Montana University System as reports of revenue for the state are looking up.

The Legislature’s current budget proposal includes $11.8 million in cuts.

“I know that the university system is one of the higher priorities,” Bachmeier said. “Exactly how much they are going to put in there I don’t know.”

Though he said any possible increase would fall short of what he would want, he said if the Senate does put more money back in the university system it could pass the House. The details of how funds would be restored remains unclear.  

Rallies were held at Montana university campuses, including Montana State University-Northern, Tuesday, to oppose cuts the students say could lead to tuition increases.

A $23.3 million cut had been previously proposed by state lawmakers, though some of that has since been restored.

Vehicle registration fee increase

A bill to increase vehicle registration fees and generate additional revenue for the noxious weed trust fund passed the House Agriculture Committee and second reading in the House Tuesday, though its future remains uncertain, Bachmeier said.

“If we pass it on the floor, which I think is likely, I am worried that it could get killed in appropriations,” he said.

Agriculture Committee members Bachmeier and Windy Boy voted for the bill, while member O’Hara voted against it. Rep. Casey Knudsen voted for the bill when it reached the floor. The bill ultimately passed the House on second reading 63-37.

The legislation, which would increase from 1.5 to 2.42 percent the amount of money that goes from motor vehicle revenue into the noxious weed account, has been sent to the House Appropriations Committee.

House Bill 410, introduced by state Rep. Ray Shaw, R-Sheridan, would raise the cost of registering a vehicle, truck or bus of less than one ton that is four years old or less by $2 and vehicles five years old or older by $1. One-time registration fees for off-highway vehicles other than quadricycles or motorcycles would increase $2.

The bill’s fiscal note says the increases would bring the amount in motor vehicle revenue the weed account gets each fiscal year from $1,690,500 to $2,754,791.

Money from motor vehicle revenue also goes to the motor vehicle recycling program; the Department of Fish, Wildlife and Parks; veterans cemetery and veterans care, and search and rescue. The fiscal note says areas would also see an uptick in the amount of revenue they receive.

Local sales tax option

A bill that would allow a city, county or city-county consolidated government to impose a local-option sales tax of up to 4 percent on luxury goods and service goods did not make it out of the Senate Taxation Committee, Tempel said.

Tempel, a member of the committee, said  the bill was amended a couple of times, but did not have the support to get out of committee.

“So that particular one is dead,” Tempel said.

Senate Bill 331, sponsored by Sen. Mike Phillips D-Bozeman, would have allowed such a tax to be adopted by a city or county if approved by voters and if revenue from such a tax was used to fund “critical infrastructure projects.”

Companion legislation has been introduced in the House by Rep. Dave Fern, D-Whitefish, that has been tabled in the House Taxation Committee.  

Herb Vasser had asked Bachmeier about legislation regarding a sales tax before Tempel arrived later in the video conference, though he did not specify SB 331.

Bachmeier said he did not see a proposal related to a sales tax making it very far,

“The governor has spoken out pretty strong against sales taxes, so if they make their way to his desk they will probably veto them, unless it’s the gas tax. He is in support of the gas tax,” Bachmeier said.

At least five bills pertaining to either implementing a state sales tax  or allowing localities to adopt a local sales tax have been introduced. One bill, proposed by state Rep. Greg Hertz, R-Polson, would replace the state income and corporate tax with a statewide sales tax. That bill has been referred to House Taxation for a hearing.

Montana and Delaware, New Hampshire, Oregon and Alaska do not have a state sales tax. A measure to create such a tax has gone before Montana voters in past elections but has been defeated each time.

Tempel said that legislation that would increase the tax on cigarettes and nicotine products passed the Senate Taxation Committee 9-3 with Tempel's support.

Senate Bill 354, introduced by Sen. Mary Caffero, D-Helena, would up the tax from $1.70 to $3.20 on a pack of 20 cigarettes, increasing from 50 percent to 74 percent of the wholesale price. The bill would also expand the definition of tobacco products to including electronic cigarettes and vaping products.