Budget & Taxes (Property Tax)

introduced · Montana · Legislature Feb 12, 2025

LC 446: Increase business equipment tax exemption

This bill increases the tax exemption for business equipment classified as Class Eight property, which includes machinery, tools, and equipment used in agriculture, mining, manufacturing, and other commercial operations. The legislation directs the state to reimburse local governments, tax increment financing districts, and the university levy for the lost tax revenue resulting from this expanded exemption. Unlike previous exemptions that received reimbursement with inflation adjustments, this new exemption will receive reimbursements without any growth rate applied. The changes take effect immediately upon passage and apply to all qualifying business equipment currently or newly classified under the amended tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax exemptions for business equipment and reimburses local governments for lost revenue, supporting business operations and maintaining local funding.85% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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introduced · Montana · Legislature Jan 8, 2025

LC 6: Revise class four residential and commercial property taxes

This bill revises Montana's property tax rates for Class Four residential and commercial properties, directly affecting homeowners, landlords, and business owners. It establishes a graduated tax rate for residential properties, exempting the first $50,000 of market value and applying higher rates to values above $1.5 million, while also creating an exemption for the first $200,000 of commercial and industrial property value. The legislation includes specific provisions for vacant residential lots, rental multifamily units, and mixed-use properties, with tax rates generally set at 1.35% for residential properties and 1.89% for commercial properties, subject to certain exemptions and multipliers. The bill takes effect immediately upon passage and applies retroactively to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill revises property tax rates with exemptions for lower values, promoting fiscal responsibility and providing tax relief for homeowners and businesses.85% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Feb 17, 2025

LC 3387: Revising the disabled veteran property tax assistance program

This bill updates Montana's disabled veteran property tax assistance program to include veterans with disability ratings between 60% and 90%, expanding eligibility beyond the current 100% rating requirement. The legislation establishes income-based tax rate reductions using a sliding scale that adjusts assistance percentages based on household income and disability status, with specific thresholds for single individuals, married couples, and surviving spouses. Key provisions include annual verification of income and veteran status, inflation adjustments to income limits using the PCE price index, and expanded definitions for primary residence to allow multiple dwellings if the taxpayer lives in them for at least seven months annually. The bill amends existing state code sections to implement these changes immediately and applies to tax years beginning on or after the date of enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands property tax assistance for disabled veterans, providing tax relief to lower-income households and strengthening support for veterans through fiscal policy.90% confidence ✓ VeteransSupports VeteransBill expands eligibility for disabled veteran property tax assistance to include ratings between 60-90%, strengthening financial benefits for veterans.95% confidence

Sub-Topics Property Tax

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died · Montana · Legislature Jan 15, 2025

LC 1860: Provide income tax relief for property taxes paid

This bill creates a new Montana tax credit for renters under 62 with household income below $45,000 who pay rent-equivalent property taxes, allowing them to claim up to $1,200 or $1,750 depending on their rent-to-income ratio. It also permits qualifying teachers to exclude certain earned income when calculating their eligibility for this credit. The legislation increases the residential property tax credit for elderly taxpayers and adjusts the income thresholds where these credits begin to phase out. Additionally, the bill schedules periodic reviews of various state tax credits starting in 2025 to assess their effectiveness and impact on taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides income tax relief for renters and elderly taxpayers, directly addressing tax policy to reduce financial burden on specific groups.90% confidence ✓ EducationSupports EducationBill allows qualifying teachers to exclude certain earned income for tax credit eligibility, providing financial relief to educators.70% confidence ✓ HousingSupports HousingBill provides tax credits for renters and elderly property owners, directly supporting affordable housing and tenant financial relief.85% confidence

Sub-Topics Business Taxes Property Tax Tax Credits Landlords Property Taxes Renters

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introduced · Montana · Legislature Feb 13, 2025

LC 1029: Provide a 5 year prepaid property tax exemption during subdivision development

This bill creates a temporary property tax exemption for real property undergoing subdivision development in Montana. To qualify, developers must submit an approved exemption application and prepay five years of property taxes before January 1 of the tax year. The exemption lasts up to five years regardless of ownership changes or land splits, but ends when a habitable dwelling is built on a lot or when 95% of the subdivision is complete. The Montana Department of Revenue will manage the program through new rules and amend existing tax assessment procedures to handle these exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides temporary property tax exemption for subdivision development, reducing tax burden on developers and promoting housing development through fiscal incentives.85% confidence ✓ HousingSupports HousingBill provides tax incentives to encourage subdivision development, which can increase housing supply and support housing development.75% confidence

Sub-Topics Property Tax Tax Incentives Property Development Property Taxes

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introduced · Montana · Legislature Dec 9, 2024

LC 627: Redistribute certain state tax revenue to primary residence property tax relief

This bill creates a state-funded property tax credit program for homeowners who designate their homes as primary residences. It redirects existing state lodging and rental car tax revenues into a special account, which is then distributed to counties to provide credits directly on property tax bills for certified primary residences. Homeowners must apply for certification by March 1 each year, and the Department of Revenue will verify eligibility while counties administer the credit payments. The program allows recipients to keep any excess credit if it exceeds their property tax bill, and it includes provisions for appeals and penalties for fraudulent applications.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief for homeowners through state-funded credits, directly supporting tax relief and fiscal management goals.90% confidence ✓ HousingSupports HousingBill creates state-funded property tax credit program for homeowners, providing financial relief and supporting housing affordability85% confidence

Sub-Topics Business Taxes Property Tax Sales Tax Historic Preservation Housing Finance Property Taxes

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introduced · Montana · Legislature Feb 20, 2025

LC 1888: Revise appraisal process for centrally assessed property

This bill updates Montana's property tax appraisal process for centrally assessed property by clarifying how independent appraisals are selected and paid for. When a property owner and the Department of Revenue agree in writing, they can jointly hire and share the cost of a qualified independent appraiser. If they cannot agree, the Department must select and pay for the appraiser, though it retains the right to modify the appraisal results while providing the original copy to the owner. The changes take effect on January 1, 2026, and apply to tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill streamlines property tax appraisal process, potentially reducing administrative costs and improving tax fairness through clearer independent appraisal procedures.75% confidence

Sub-Topics Property Tax

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introduced · Montana · Legislature Jan 14, 2025

LC 3292: Revise residential and commercial property tax rate

This bill amends Montana's property tax code to adjust the tax rate for Class Four residential and commercial properties. It directly affects homeowners, businesses, and property owners whose real estate falls under this classification. The key change is a revision of the tax rate from 1.35% to 0.76% on market value for most residential properties, with higher rates applied to properties exceeding $1.5 million in value. Commercial property will be taxed at a rate of 1.35% of market value, while golf courses remain taxed at half the commercial rate. The legislation applies immediately upon passage and includes retroactive application to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces property tax rates for most residential properties from 1.35% to 0.76%, providing tax relief and aligning with fiscal responsibility goals.85% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Dec 6, 2024

LC 92: Revising taxation of lands owned by department of fish, wildlife, and parks

This bill changes how property taxes are assessed for lands owned by Montana's Department of Fish, Wildlife, and Parks, requiring these lands to be taxed like private property rather than exempt from taxation. The legislation amends existing state laws to ensure that when the department purchases land for conservation or recreation purposes, it becomes subject to standard property assessment procedures used for private citizens. While maintaining existing tax exemptions for other government entities, the bill specifically targets the department's land holdings to align them with general property taxation rules. The changes apply immediately and retroactively to lands already owned by the department.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax exemption loophole for state-owned lands, promoting fiscal responsibility and increasing state revenue through property tax assessment.90% confidence

Sub-Topics Property Tax

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introduced · Montana · Legislature Feb 11, 2025

LC 704: Provide informal review of property tax disputes at MTAB

This bill creates an informal review process for property tax disputes involving Class 4 residential property at the Montana Tax Appeal Board. It allows homeowners to choose a streamlined hearing option that is simpler and faster than the standard formal appeal process. Under this new option, the board's decision would be final and binding without the possibility of further appeal to district court. The bill also clarifies how the board should handle independent appraisals submitted by taxpayers, particularly for residential properties where such appraisals are presumed correct unless the state provides sufficient evidence to the contrary.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill streamlines property tax dispute resolution, reducing administrative costs and providing faster relief for homeowners, which supports fiscal efficiency and taxpayer relief.85% confidence

Sub-Topics Property Tax

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