Montana 2023 Regular Session

Montana Senate Bill SB81

Introduced
12/15/22  
Refer
12/28/22  
Engrossed
1/24/23  
Refer
3/11/23  
Enrolled
3/27/23  

Caption

Revise description of pipeline carrier for property tax purposes

Impact

The anticipated impact of SB 81 includes significant changes to how property taxes are applied to pipeline companies and public utilities. By clarifying the classifications and taxable percentages for various types of properties, the bill intends to enhance the efficiency of tax assessments which could result in a more equitable tax structure. This can potentially benefit both businesses by reducing ambiguities in tax liability and local governments through improved revenue collection mechanisms and fair market assessments.

Summary

Senate Bill 81, introduced by Senator R. Tempel at the request of the Department of Revenue, focuses on revising the property tax assessment for centrally assessed pipeline properties in Montana. The bill amends sections of the Montana Code Annotated, specifically those relating to the assessment and tax treatment of certain properties owned by public utility companies, including pipelines and telecommunications infrastructure. The central aim of this legislation is to provide clearer definitions and a more streamlined process for assessing these properties, particularly those that span multiple counties or states.

Sentiment

Discussions around SB 81 appear to lean positively from both legislators and industry advocates who see it as a necessary revision to modernize Montana’s tax structure. Proponents argue that the updates will cut down on bureaucratic inefficiencies and result in a clearer market landscape for pipeline and utility companies. However, there are underlying concerns regarding the implications of such revisions on local governments that rely on property tax revenues, suggesting a need for a balanced approach that doesn’t disproportionately favor larger corporations.

Contention

Despite the general support, contention exists regarding the retroactive applicability of the bill, as it seeks to apply these revisions to property tax assessments as far back as the tax years beginning after December 31, 2022. This aspect has raised questions about fairness and the implications for companies that may have already received their assessments for the affected years. Stakeholders are seeking assurances that the bill’s enactment will not lead to retroactive tax burdens that could disrupt established financial expectations and local budgets.

Companion Bills

No companion bills found.

Previously Filed As

MT SB530

Generally revise taxation of new, expanded, or improved industrial property

MT SB32

Generally revise property taxes

MT HB844

Revise the taxation of class eight business equipment

MT SB540

Revise taxation of class 17 property

MT HB212

Increase business equipment tax exemption

MT SB322

Increase business equipment tax exemption

MT SB510

Provide property tax incentives for alternative fuel production

MT SB54

Revise centrally assessed property appraisals

MT SB529

Provide property tax exemption for wireless infrastructure

MT HB494

Provides for common carriers of petroleum pipelines

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