Revise tax rate for agricultural property owned by certain nonprofits
Impact
The implications of HB 870 will potentially alter the landscape of agricultural taxation in Montana. Nonprofit organizations that own agricultural land, including those that may not fit traditional definitions of farming (such as community gardens or educational farms), could benefit from a tax structure that reflects their unique missions. By providing favorable tax treatment, the bill seeks to support nonprofits in their operations, enabling them to invest more resources back into the community and agricultural initiatives.
Summary
House Bill 870 aims to revise the tax rate for agricultural properties owned by certain nonprofit corporations. This legislation is a response to the growing need for equitable tax treatment of agricultural lands owned by nonprofits, which often provide community services but may face higher tax burdens due to their nonprofit status. Specifically, the bill seeks to modify existing sections within the Montana Code Annotated (MCA) to ensure these nonprofit organizations are taxed at more favorable rates while still aligning property classification with state agricultural standards.
Contention
There were notable discussions surrounding the bill regarding its impact on state revenues and the equity of tax burdens among different types of landowners. Opponents of the bill raised concerns that lowering tax rates for certain nonprofits could lead to decreased revenue for local governments that rely on property taxes. Additionally, there were debates about whether all nonprofit organizations should receive this benefit, or if restrictions should apply regarding the types of activities they engage in on the land. Proponents argue that by fostering more sustainable and community-oriented agricultural practices, the long-term benefits would outweigh the short-term revenue concerns.
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Property tax: other; certain references in the general property tax act; make gender neutral. Amends sec. 27a of 1893 PA 206 (MCL 211.27a). TIE BAR WITH: HJR F'23
Property tax: assessments; transfer of ownership of certain real property to certain individuals; exempt from uncapping of taxable value upon transfer. Amends sec. 27a of 1893 PA 206 (MCL 211.27a).
Legacy fund definitions, the legacy earnings fund, and the primary residence credit; to provide an appropriation; to provide for a transfer; to provide an effective date; and to provide an expiration date.