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.
House Bill 140 establishes a property tax assistance program for certain first responders and their surviving spouses. It provides a reduction in residential property taxes for law enforcement officers and firefighters who were injured in the line of duty. Unmarried surviving spouses of first responders killed in the line of duty are also eligible for this assistance. The amount of the tax reduction is determined by the applicant's income, with lower incomes receiving a greater benefit. Eligibility requires the property to be the primary residence and the first responder to meet specific criteria related to their line-of-duty injury or death.
SB 560 requires nonprofit hospitals to report their annual charity care and community benefit spending to the state. The bill mandates that a nonprofit hospital's total community benefit must exceed the amount of property taxes it would have paid if it were not tax-exempt. If a hospital's reported community benefit does not meet this threshold, a fee equal to the difference will be assessed. These collected fees are then deposited into a new Critical Access Health Care Special Revenue Account, which provides funding to critical access hospitals not affiliated with other hospitals.
HB 231 revises property tax laws by establishing reduced tax rates for certain class four residential and commercial properties. It provides a lower tax rate for qualifying owner-occupied principal residences and long-term rental properties, as well as for a portion of commercial property value. For principal residences, some owners will automatically qualify for the reduced rate for tax years 2025 and 2026 based on prior tax rebates or assistance programs. Beginning in tax year 2027, all owners seeking these reduced rates must apply to the department and meet specific eligibility criteria, such as demonstrating occupancy for a principal residence or rental periods for long-term rentals.
This bill creates an income tax credit for Montana taxpayers who donate cash to qualifying community improvement organizations. Taxpayers can claim a credit equal to 10% of their Montana taxable income or $3,000 (whichever is lower), with a total annual limit of $2 million in 2026 and $5 million in 2027 onward. The credit can be carried forward up to three years if not fully used in the donation year. To qualify, organizations must be 501(c)(3) nonprofits focused on public facilities (not including those with paid staff), and donations cannot overlap with existing charitable deduction benefits.
This bill (LC 1002) allows Montana taxpayers who claim the federal qualified business income deduction (Section 199A of the Internal Revenue Code) to also deduct that same amount from their Montana state taxable income. It directly affects Montana residents and businesses operating as pass-through entities (like S-corps, partnerships, and sole proprietorships) that qualify for the federal deduction. The key provision amends Montana’s tax code to add a specific subtraction for the federal 199A deduction amount, aligning state tax calculations with federal treatment. This reduces Montana taxable income by the amount claimed under the federal deduction, with immediate effective and retroactive application.
This bill revises how Montana allocates marijuana tax revenue, directing funds to specific state accounts after covering department operating costs. It requires 10% of excess funds to support addiction treatment programs (HEART account), 20% for wildlife habitat projects, 4% each to state parks/trails, and 31% for law enforcement grants to local police departments. Additional allocations include $300,000 for drug detection canines (ending 2025), 1.5% for sexual assault evidence kits, and 0.25% to homeless shelter support. These changes amend existing tax distribution rules under Montana law, affecting state agencies including wildlife, public health, and law enforcement. The bill does not change marijuana taxation rates but specifies new spending priorities for existing revenue.
This bill revises Montana's property tax rules for dedicated communications infrastructure, specifically fiber optic and coaxial cable networks. It provides a 5-year tax exemption for such infrastructure installed after July 1, 2021, with the exemption phasing out over 10 years (20% per year). Telecom companies installing qualifying infrastructure must reinvest tax savings into new Montana fiber/cable installations within 2 years to maintain the exemption. Federally funded projects under the American Rescue Plan Act are excluded from this tax benefit.
This bill creates a Montana income tax credit for parents, guardians, or teachers paying K-12 education expenses. It allows a credit of up to $1,250 per year, covering costs like tuition, textbooks, online learning programs, tutoring, therapies, and school supplies. The credit can be claimed even without taxable income, with any excess refunded. It applies to expenses paid for children in public schools, accredited private schools, non-accredited tutors (with written disclosure), or compliant homeschools. The bill aims to help offset rising K-12 education costs for families and educators.
This bill (LC 1170) creates a "large taxpayer reserve account" for Montana cities and counties. It requires local governments to deposit 10% of revenue from newly taxable property (excluding class four) into this account annually. Funds can only be spent if a "large taxpayer" (top 20% of taxable value in the jurisdiction) permanently leaves or their property value drops by 25% or more, then used for bond payments, temporary tax reductions, attracting new businesses, job expansion, or related infrastructure. The bill also revises property tax calculation rules to increase the inflation cap used for levy limits and adjusts how newly taxable property affects tax rates.
