This bill prevents certain state-mandated property tax levies from being carried forward to future years if local governments do not use their full authorized tax authority in the current year. It directly affects Montana counties, school districts, and other governmental entities that impose property taxes, specifically limiting how they can bank unused tax mill authority for later use. The key provision amends existing property tax law to exclude specific state-mandated levies - such as those for school districts, regional resource authorities, and certain special assessments - from the ability to carry forward unused tax authority. Local governments will still be able to carry forward unused tax authority for their own discretionary levies, but they cannot do so for taxes required by state law for specific purposes.
This bill exempts agricultural property from open space property tax levies in Montana, directly affecting landowners who classify their property for agricultural use. The key provision amends state law to remove agricultural land from the list of properties subject to these levies, which fund various county services like parks, roads, and fire control. If a county had already collected payments from exempt agricultural property, the bill allows counties to reduce those payments to refund the overcharged amount. The law takes effect immediately upon passage and applies retroactively to tax years beginning on or after January 1, 2025.
This bill modifies Montana laws governing voter-approved property tax levies by establishing time limits on their duration and requiring periodic voter reapproval. It directly affects local governments, school districts, and taxing entities that have previously approved property tax increases through elections. The key provision limits most new or extended mill levies to a maximum of 10 years without requiring voters to reapprove them before the expiration date. Additionally, the bill clarifies how tax increment calculations work for targeted economic development districts and urban renewal areas, specifying which mill rates should be excluded from those calculations based on when the districts were created.
This bill requires voter approval before Montana counties, cities, or school districts can use new property tax levies or issue bonds to pay court judgments, settlements, or property taxes paid under protest. The law amends multiple state statutes to ensure that any special tax increases or debt issued for these financial obligations must be submitted to registered voters for approval. Local governments can still pay these costs from existing funds or insurance, but cannot raise new taxes without a public vote. The changes apply to all political subdivisions and take effect on the bill's applicability date.
This bill updates Montana's property tax rates for agricultural, residential, and commercial properties, directly affecting landowners and property owners across the state. It amends existing state statutes to change the tax percentage for agricultural land from 1.7% to 2.16% of productive capacity value and adjusts residential and commercial tax rates from 0.76% to 1.35% of market value, while also modifying how certain mixed-use properties are classified and taxed. The legislation includes specific provisions for nonqualified agricultural land, mining claims, and residential properties over $1.5 million in value, with tax rates applied differently based on property use and size. The changes take effect immediately upon passage and apply retroactively to tax years beginning after December 31, 2024, and the reappraisal cycle starting January 1, 2025.
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 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.
Montana bill LC 4173 revises property tax rules to exempt certain telecommunications infrastructure from taxation. It directly affects rural telecommunications providers serving rural areas or communities with 1,200 residents or fewer, including those operating in no more than three counties. The bill creates a 5-year tax exemption for newly installed fiber optic or coaxial cable placed in service after July 1, 2021, requiring owners to reinvest tax savings into new Montana infrastructure within two years. After 5 years, the exemption phases out gradually over 10 years, ending at full taxable value.
SB 205 would have revised Montana's voter approval requirements for local property tax levies and bond elections. It would have increased the minimum voter turnout threshold for county bond elections from 30% to 40% (requiring 50%+ of votes cast to approve), and raised the threshold for city/town bond elections from 40% to 50% turnout (also requiring 50%+ of votes cast). These changes directly affected counties and municipalities seeking voter approval for bond measures or mill levies. The bill died in process in May 2025 and did not become law.
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.
