Montana Code Annotated
Part 21. Taxes and Assessments
85-7-2157. Purchase of lands by district -- revolving fund, credits, and expenditures

85-7-2157. Purchase of lands by district -- revolving fund, credits, and expenditures. (1) When a tax lien is attached to property for which a portion of the delinquent taxes are taxes and assessments levied and assessed by an irrigation district, the commissioners of the irrigation district may take an assignment of the tax lien for the total amount of all delinquent taxes and assessments, penalty, and interest against the land. The county treasurer shall assign the tax lien to the irrigation district and issue an assignment certificate to the irrigation district the same as assignment certificates are issued to other assignees. For the purpose of paying the taxes, assessments, interest, and penalties, the commissioners of the irrigation district may create by resolution a revolving fund for the purchase of tax liens. The commissioners may provide funds for the revolving fund by levy, bond issue, or otherwise. The district may pay the taxes, assessments, interest, and penalties by issuing a warrant to the county treasurer against the revolving fund if there is sufficient money in the fund.
(2) When taxes are paid by the district as provided in this part, the county treasurer shall distribute that portion of the tax belonging to the irrigation district to the several funds as designated in the tax levy and assessment. However, if the board of commissioners of the irrigation district file with the county treasurer a certified copy of the resolution passed by the commissioners requesting nondistribution by the county treasurer of the portion of the tax belonging to the district, the county treasurer may not distribute that portion of the tax belonging to the irrigation district to the several funds as designated in the tax levy and assessment, but the total amount due the irrigation district must be credited by the treasurer to the revolving fund. If money is credited to the revolving fund, at the time of the assignment by the district of the tax lien or of the sale of property obtained through the certificate, the funds that are realized from the sale must be deposited with the county treasurer, together with the rentals received from the property, and the treasurer shall credit the proceeds of the redemption sale or rental pro rata to the several funds of the district in accordance with the original levy or assessment.
(3) At the time of redemption or of the assignment by the district of the tax lien certificate or sale of the property obtained through the certificate, the funds that are realized must be deposited with the county treasurer, together with rentals received from the property. The county treasurer shall credit the proceeds of the redemption, sale, or rentals to the revolving fund to the extent required to reimburse the revolving fund in full. If the sum realized permits, any excess must be credited to the several funds of the district in accordance with the original levy and assessment. Expenditures may not be made from the revolving fund except as provided in this section. The board of irrigation district commissioners may, by resolution, when the fund becomes inactive, transfer the balance to a sinking fund to pay any indebtedness that had been incurred by the district by reason of the creation of the revolving fund.
History: En. Sec. 1, Ch. 89, L. 1925; amd. Sec. 1, Ch. 57, L. 1929; re-en. Sec. 7248.1, R.C.M. 1935; R.C.M. 1947, 89-1822; amd. Sec. 31, Ch. 110, L. 2007; amd. Sec. 37, Ch. 67, L. 2017.

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