Budget & Taxes (Tax Incentives)

died · Montana · Senate May 23, 2025

SB 169: Revise intangible personal property exemption

SB 169 would revise Montana's property tax law by removing the tax exemption for certain intangible personal property, such as stocks, bonds, patents, software, and licenses, unless they are directly used in business operations. This change would affect businesses and property owners holding these assets, requiring them to pay property taxes on previously exempt items. The bill clarifies that intangible property lacking physical existence (like goodwill) or representing value (like financial instruments) is no longer exempt, while property integral to business operations remains exempt. The law would take effect for tax years beginning after December 31, 2025, with implementation starting January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for intangible property, increasing state revenue and closing a tax loophole per bill's explicit revision of property tax law.95% confidence

Sub-Topics Tax Incentives

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died · Montana · Legislature May 22, 2025

LC 441: Provide tribal property tax exemption to tribal members

This bill (LC 441) amends Montana law to expand a temporary property tax exemption from tribal entities to individual tribal members. It changes Section 15-6-230, MCA, to allow property owned in fee by a member of a federally recognized Montana tribe to qualify for the same exemption previously only available to tribes themselves, provided the member submits a timely application approved by the state department. The exemption remains temporary (up to 5 years), requires annual certification that the federal trust application is pending, and includes tax recapture if the federal application is denied. It directly affects tribal members owning property in Montana who are awaiting federal trust status approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for tribal members, reducing their tax burden under Montana's tax code, aligning with tax relief indicators.95% confidence

Sub-Topics Tax Incentives

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died · Montana · Legislature May 23, 2025

LC 3752: Generally revise policies on state subsidy and incentive of affordable housing development

This bill (LC 3752) aimed to revise state policies governing subsidies and incentives for affordable housing development. It would have directly affected developers, housing agencies, and low-to-moderate income residents seeking subsidized housing. However, the bill died in the drafting process on May 23, 2025, without advancing to committee review or a vote. No specific policy changes were enacted, as the bill never progressed beyond the initial drafting stage. The legislative record shows no further action or details about its proposed mechanisms.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill aimed to revise state subsidies/incentives for affordable housing, requiring state budget allocation to fund essential housing programs for low-income residents, aligning with funding essential services.90% confidence ✓ HousingSupports HousingBill explicitly aimed to revise subsidies/incentives for affordable housing development, indicating supportive intent toward advancing housing policies despite not passing.90% confidence

Sub-Topics Tax Incentives Affordable Housing Housing Finance Property Development

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signed · Montana · House May 19, 2025

HB 920: Provide property tax exemption for senior care facilities and housing

HB 920 establishes a temporary property tax exemption for new senior care facilities and housing development projects. Tax-exempt non-profit organizations sponsoring these projects must first petition a local government, which determines if there is a "compelling need" for the project through a public hearing. If approved by the local government, the sponsor can then apply to the department of revenue for the exemption. This bill aims to encourage the development of various affordable housing and care options for seniors aged 55 or 62 and older.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for senior care facilities, reducing tax burden for affordable housing development.95% confidence ✓ HealthcareSupports HealthcareBill provides tax exemption for senior care facilities to encourage development of affordable housing, directly improving access to senior healthcare services.95% confidence ✓ HousingSupports HousingBill provides tax exemption for senior housing development, explicitly aiming to encourage affordable housing construction through local need assessments.95% confidence

Sub-Topics Property Tax Tax Incentives Affordable Housing Property Development Property Taxes

died · Montana · House May 22, 2025

HB 836: Provide for a property tax deferral loan program

HB 836 proposed creating a property tax deferral loan program for eligible senior citizens and active-duty military personnel in Montana. This program would allow qualifying homeowners to defer paying the portion of their property taxes that exceeds their 2022 property tax amount. The state's Board of Housing would provide these loans, which would accrue simple interest and become a lien on the primary residence. The loan, including interest, would generally be repaid when the property is sold or transferred, or upon the death of the homeowner, though a surviving spouse might be able to assume the loan.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax deferral for seniors/military, reducing immediate tax burden (tax relief for vulnerable groups), aligning with support indicators.95% confidence ✓ HousingSupports HousingDefers property taxes for seniors/military to prevent home loss, supporting housing stability for vulnerable groups.85% confidence

Sub-Topics Tax Incentives Homeownership Property Taxes

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died · Montana · Senate May 23, 2025

SB 322: Increase business equipment tax exemption

SB 322 increases Montana's tax exemption for business equipment by setting a $500 threshold, meaning equipment costing under $500 would be automatically exempt from taxation. It also requires annual inflation adjustments to the exemption amount and modifies tax code sections to clarify definitions and eligibility. Local governments and tax increment financing districts would receive reimbursements for lost property tax revenue due to these changes. The bill directly affects Montana businesses purchasing equipment under $500 and local governments managing property tax revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax exemption for small business equipment ($500 threshold), providing tax relief while requiring reimbursements to offset local revenue loss.90% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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signed · Montana · Senate May 16, 2025

SB 534: Provide property tax exemption for wireless infrastructure

SB 534 provides a property tax exemption for specific wireless infrastructure in Montana. This bill exempts qualifying wireless infrastructure, placed into service on or after the act's effective date, from property taxes for an initial period of five years. Following this, the exemption gradually phases out over the next five years, after which the property becomes fully taxable. To maintain the exemption, owners must reinvest the tax savings into new communication infrastructure within Montana, without charging those costs to consumers.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for wireless infrastructure, a direct tax relief measure under taxation policy, aligning with tax relief indicators.90% confidence ✓ TechnologySupports TechnologyTax exemption incentivizes wireless infrastructure investment, directly advancing internet access and communication technology deployment per bill's purpose.92% confidence

Sub-Topics Business Taxes Tax Incentives Telecommunications

introduced · Montana · Legislature Mar 26, 2025

LC 1737: Provide for class of property for manufacturing for property tax purposes

This bill creates a new property tax class (class nineteen) specifically for manufacturing properties in Montana. It defines qualifying manufacturing property as land and improvements used for transforming materials into new products or assembling components (excluding construction), and sets a lower tax rate of 1.47% on this class - significantly below standard rates. The law applies to property tax years starting January 1, 2026, directly affecting manufacturers whose property meets the defined criteria. It clarifies tax treatment for parcels with mixed uses by basing classification on the largest share of improvements.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates lower tax rate (1.47%) for manufacturing property, providing targeted tax relief under state property taxation policy.95% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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died · Montana · Legislature May 20, 2025

LC 2591: Provide abatements for affordable housing

This bill (LC 2591) allows Montana local governments to offer property tax abatements for specific types of affordable rental housing. It creates a 10-year phased tax reduction: qualifying housing gets full tax exemption in year one, with taxable value increasing by 11% annually until reaching 100% in year ten. The abatement applies to affordable multifamily housing (5+ units), smaller rentals (4 units or fewer), accessory dwelling units, and affordable trailer courts, all requiring rent to be ≤30% of tenant income (or ≤80% of market rent) for households earning 60-100% of area median income. The tax break covers only building improvements, not land value, and local governments must adopt the program via resolution.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax abatements for affordable housing, reducing tax burden on qualifying housing providers per bill's phased 10-year exemption.92% confidence ✓ HousingSupports HousingBill provides tax abatements to incentivize affordable housing development, directly advancing affordable housing policy through property tax reductions.95% confidence

Sub-Topics Business Taxes Tax Incentives Affordable Housing Property Taxes Tenant Rights

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died · Montana · Legislature May 20, 2025

LC 1732: Lower tax rate on income from Montana manufacturing

Montana's LC 1732 bill reduces income tax rates specifically for income earned from manufacturing activities within the state. It establishes a new tax bracket where income from Montana manufacturing is taxed at 2.7% on the first portion (matching standard income thresholds: $41,000 for joint filers, $30,750 for heads of household, etc.) and 3.9% on amounts above those thresholds. This applies directly to Montana-based manufacturers, including businesses and individuals earning manufacturing income within Montana. The bill modifies Montana's tax code to create this preferential rate, lowering the tax burden compared to the standard 4.7% rate on regular income.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces tax rates for Montana manufacturing income, providing targeted tax relief to businesses and individuals in this sector per tax brackets.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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