Budget & Taxes

House Bill 411 (HB 411) exempts agricultural property from local property tax levies that are used to fund open space initiatives. This means that owners of land classified as agricultural will no longer be required to pay the portion of their property taxes designated for open space purposes. The bill also allows counties to reduce any open space payments made to agricultural properties that are now exempt from these levies. This change applies retroactively to property tax years beginning on or after January 1, 2025.

SB 540 revises Montana's property tax rules for "class 17 property," specifically targeting dedicated telecommunications infrastructure like fiber optic and coaxial cable. It provides a 5-year tax exemption for new fiber/coaxial cable installations placed in service after July 1, 2021, with the exemption phasing out over 10 years (20% annually). To maintain the exemption, owners must reinvest the tax savings into new Montana cable installations within 2 years without passing costs to consumers. Federal-funded projects (e.g., under the American Rescue Plan) are excluded from the exemption, and owners must keep records for state review. The bill directly affects telecom infrastructure owners and operators in Montana.