HB 155: Revise class four residential and commercial property taxes - Montana

HB0155_3(12).pdf → HB0155_4.pdf · 6 edits

MODERATE

The bill was renumbered from HB 155.3 to HB 155.4 and significantly revised its text to introduce new property tax classifications. The changes replace the previous focus on Class Four property with a new Class Three Agricultural category and modify tax rates for residential and commercial properties. These updates aim to restructure how agricultural land, mining claims, and residential homes are valued and taxed under Montana law.

Scope change

The bill's scope expanded to include a new Class Three Agricultural property category and altered the classification rules for mining claims and forest land, shifting the legislative focus from primarily Class Four property to a broader mix of agricultural and residential tax structures.

SCOPE

Added a new Class Three Agricultural property category to the bill, expanding the scope of property types subject to specific tax rules.

ELIGIBILITY

Changed eligibility criteria for mining claims, now requiring that the surface not be used for residential or recreational purposes to qualify for specific tax treatment.

FISCAL

Adjusted taxable percentage rates for Class Three agricultural land from 2.16% to 2.05% and modified the calculation method for taxable value.

Revised residential property tax rates, changing the base rate from 1.35% to 1.11% and altering the graduated rate structure for higher-value homes.

ENFORCEMENT

Updated the exemption threshold for commercial and industrial property, raising the initial exempt amount from $200,000 to $400,000.

TECHNICAL

Corrected internal references and section numbers throughout the bill, such as changing references from Section 15-6-134 to include Section 15-6-133.

HB0155_2(13).pdf → HB0155_3.pdf · 3 edits

MINOR

The bill was renumbered from HB 155.2 to HB 155.3 and had several sponsors added or removed from the introduction list. The most significant policy change is an expansion of the residential property tax exemption threshold from $200,000 to $400,000, which will reduce taxes for more homeowners. Additionally, the tax exemption limit for commercial and industrial property was similarly increased from $200,000 to $400,000.

Scope change

The bill's financial scope expanded to cover a larger portion of property values for both residential and commercial/industrial owners, effectively increasing the amount of property value that is exempt from taxation.

ELIGIBILITY

Increased the residential property tax exemption threshold from $200,000 to $400,000 in market value.

Increased the commercial and industrial property tax exemption threshold from $200,000 to $400,000 in market value.

TECHNICAL

Updated the bill number from HB 155.2 to HB 155.3 and adjusted the list of sponsoring legislators.

HB0155_2(6).pdf → HB0155_2(7).pdf · 2 edits

MINOR

The bill includes minor formatting adjustments to the header and a specific amendment to the list of sponsors. The most significant policy change is a reordering of the reference to subsection (1)(f) in the definition of Class Four property, which clarifies the legal citation but does not alter the actual tax rules or eligibility criteria for property owners.

Scope change

The scope of the bill remains unchanged; the amendments are technical and do not expand or restrict the application of the law.

TECHNICAL

Reordered the reference to subsection (1)(f) in the definition of Class Four property to align with a specific amendment markup style, without changing the substantive tax rules.

Added sponsor P. Flowers to the list of bill sponsors and adjusted the header formatting.

HB0155_1(14).pdf → HB0155_2.pdf · 4 edits

MODERATE

The bill was renumbered from HB 155.1 to HB0155.2, and the list of sponsoring legislators was completely replaced with a new set of names. The core policy regarding property tax rates and exemptions remains substantively unchanged, though the text includes some formatting inconsistencies and minor wording adjustments that do not alter the legal effect.

Scope change

The bill's scope and applicability remain unchanged; the amendments only affect the bill's metadata and formatting.

TECHNICAL

The bill number was updated from HB 155.1 to HB0155.2.

The entire list of sponsoring legislators was replaced with a new set of names.

Minor formatting changes were made to the header and page numbers, including the addition of a hyphenated line at the top of the document.

The text of the property tax rates and exemptions was altered with inconsistent capitalization and spacing, but the numerical values and legal logic remain the same.

HB0155_1(2).pdf → HB0155_1(3).pdf · 1 edit

MINOR

The bill's sponsor list was updated to remove 'R. Lynch' from the list of co-sponsors, while all other legislative text and policy provisions remained unchanged. This change reflects a procedural update to the bill's introduction rather than a modification to the bill's substantive content or legal requirements.

TECHNICAL

The list of bill sponsors was updated to remove Representative R. Lynch, indicating a change in the bill's co-sponsorship rather than a policy shift.

LC0006.pdf → HB0155_1.pdf · 4 edits

MODERATE

This bill revises Montana's property tax laws to create a graduated tax rate structure for Class Four residential properties, replacing the previous flat 1.35% rate with a tiered system that offers lower rates for lower-valued homes and higher rates for luxury properties. The changes also adjust the tax treatment for commercial property and clarify exemptions for agricultural and forest land. These updates aim to increase tax revenue from high-value residential properties while providing relief to lower-income homeowners.

Scope change

The bill expands the scope of property tax assessment by introducing a graduated rate schedule that applies different percentages based on the market value of the property, rather than applying a single flat rate to all Class Four residential properties.

FISCAL

Replaced the flat 1.35% tax rate for Class Four residential property with a graduated schedule ranging from 0% on the first $50,000 of value to 2% on values exceeding $2 million.

Adjusted the tax rate for commercial and industrial property in excess of the $200,000 exemption to 1.89% (previously 1.4 times the residential rate).

ELIGIBILITY

Introduced a specific tax rate of 1.89% for single-family residential dwellings with a market value exceeding $1.5 million.

TIMELINE

Added a retroactive applicability clause stating the act applies to property tax years beginning after December 31, 2024.

Revise class four residential and commercial property taxes

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