This bill amends Montana's property tax laws to revise how government entities can increase property tax levies. It directly affects state and local taxing units such as school districts, counties, and municipalities that impose property taxes. The key provision allows entities to increase taxes by the prior year's assessed amount plus half of the average inflation rate over the previous three years, capped at 4% total growth. The bill also clarifies how newly taxable property is treated in calculations and establishes specific rules for tax increment financing districts.
This bill requires the Montana Department of Revenue to obtain written permission from property owners before entering private land to conduct property tax appraisals or audits. It directly affects landowners and the state tax assessment staff by establishing new access rules that protect private property rights. Under the new provisions, the department must publish annual notices informing landowners of their right to be present during inspections and to request that an agent accompany assessors. If permission is denied or scheduling cannot be arranged, assessors must estimate property values without entering the land, and tax appeal boards cannot use denied entry as grounds to reject value adjustments unless the owner provides a certified appraisal. The law also clarifies that vehicle access is limited to established roads unless the landowner grants additional permission.
This bill creates a property tax exemption for Montana homeowners aged 65 or older who have lived in their primary residence for at least five years. The exemption reduces the tax owed by the difference between the property's current market value and its value in the year the exemption was first approved. To qualify, the home must be a single-family dwelling of up to five acres, and owners must file an application by March 1 of each tax year. The exemption ends if the property is sold or undergoes significant construction or remodeling, though owners may reapply after such changes. The law applies to property tax years beginning after December 31, 2025.
This bill provides property tax assistance for law enforcement officers and firefighters who are injured in the line of duty, as well as for the surviving spouses of those killed in the line of duty. It establishes income-based tax rate reductions for the primary residences of eligible individuals, with lower income earners receiving greater percentage reductions on their property taxes. The legislation also expands the state's rulemaking authority to define eligibility requirements and implement annual income verification processes to ensure ongoing compliance with the program's criteria.
This bill modifies Montana's property tax system to allow for financial reimbursement between school districts when students from one district attend school in a neighboring district due to geographic barriers. It creates a process where a school district can petition the county superintendent for a reconciliation payment if an isolated pupil from a wealthier district attends their school, requiring a $100 processing fee and annual application. The bill also establishes that when school territory is transferred between districts, the taxable value of that land will be split between both districts for three years to maintain tax equity. Additionally, it provides a legal appeal process for districts that disagree with the county superintendent's determination regarding payment eligibility.
This bill updates Montana's disabled veteran property tax assistance program to include veterans rated between 60% and 90% disabled, in addition to those rated 100% disabled. It establishes income-based tax rate reductions for eligible veterans and their spouses, with higher assistance percentages for those with higher disability ratings. The legislation also introduces annual verification requirements to confirm eligibility each year based on income, disability status, and residency. These changes apply immediately and affect property tax calculations for qualifying veterans and surviving spouses in Montana.
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.
This bill limits how much property taxes can grow for Montana's state education levies, specifically capping the increase at 3% above the prior year's revenue for certain state-mandated school taxes. It directly affects school districts and other governmental entities that collect property taxes for education purposes by restricting how many mills (tax rates) they can impose. The bill removes the ability to carry forward unused tax authority for specific state education mills and clarifies how newly taxable property and inflation adjustments are calculated. Local governments can still vote to raise additional taxes beyond these limits, but the state-mandated education portion is now strictly capped to prevent revenue growth exceeding the 3% threshold.
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.
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.
