- 2025
69th Legislature 2025 HB0155.4
- 1 - Authorized Print Version – HB 155
1 HOUSE BILL NO. 155
2 INTRODUCED BY M. THANE, M. MARLER, P. FLOWERS, D. HAWK, M. CAFERRO, P. TUSS, S. HOWELL,
3 T. RUNNING WOLF, T. FRANCE, J. LYNCH, L. SMITH, B. CARTER, Z. ZEPHYR, S. MORIGEAU, S.
4 DEMAROIS, J. REAVIS, L. MUSZKIEWICZ, B. EDWARDS, J. ISALY, M. LEE, P. STRAND, T. CROWE, J.
5 SECKINGER, B. CLOSE, P. ELVERUM, S. FYANT, C. NEUMANN, M. DUNWELL, J. WEBER, D. POWERS, J.
6 MORIGEAU, M. CUNNINGHAM, D. HAYMAN, S. ROSENZWEIG, C. POPE, E. KERR-CARPENTER, C.
7 KEOGH, K. SULLIVAN, J. COHENOUR, E. MATTHEWS, J. KARLEN, W. CURDY, S. WEBBER
8
9 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING PROPERTY TAX LAWS; REDUCING
10 CLASS THREE AGRICULTURAL PROPERTY TAX RATES; REVISING REDUCING CLASS FOUR
11 RESIDENTIAL AND COMMERCIAL PROPERTY TAX RATES; PROVIDING AN FOR A HOMESTEAD
12 EXEMPTION FOR A PORTION OF CLASS FOUR RESIDENTIAL PROPERTY VALUE; REDUCING CLASS
13 TEN FOREST LAND PROPERTY TAX RATES; PROVIDING HOMESTEAD EXEMPTION ELIGIBILITY AND
14 APPLICATION REQUIREMENTS; PROVIDING AN APPEAL PROCESS; PROVIDING DEFINITIONS;
15 PROVIDING RULEMAKING AUTHORITY; PROVIDING AN EXEMPTION FOR A PORTION OF CLASS FOUR
16 COMMERCIAL PROPERTY VALUE; AMENDING SECTION SECTIONS 15-6-133,15-6-134, AND 15-6-143,
17 MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.”
18
19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
20
21ECTION 1. SECTION 15-6-133,MCA, IS AMENDED TO READ:
22 "15-6-133. (1) Class three property
23 includes:
24 (a) agricultural land as defined in 15-7-202;
25 (b) nonproductive patented mining claims outside the limits of an incorporated city or town held by
26 an owner for the ultimate purpose of developing the mineral interests on the property. For the purposes of this
27 subsection (1)(b), the following provisions apply:
28 (i) The claim may not include any property that is used for residential purposes, recreational - 2025
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1 purposes as described in 70-16-301, or commercial purposes as defined in 15-1-101 or any property the
2 surface of which is being used for other than mining purposes or has a separate and independent value for
3 other purposes.
4 (ii) Improvements to the property that would not disqualify the parcel are taxed as otherwise
5 provided in this title, including that portion of the land upon which the improvements are located and that is
6 reasonably required for the use of the improvements.
7 (iii) Nonproductive patented mining claim property must be valued as if the land were devoted to
8 agricultural grazing use.
9 (c) parcels of land of 20 acres or more but less than 160 acres under one ownership that are not
10 eligible for valuation, assessment, and taxation as agricultural land under 15-7-202(1), which are considered to
11 be nonqualified agricultural land. Nonqualified agricultural land may not be devoted to a commercial or
12 industrial purpose. Nonqualified agricultural land is valued at the average productive capacity value of grazing
13 land.
14 (2) Subject to subsection (3), class three property is taxed at 2.16% 2.05% of its productive
15 capacity value.
16 (3) The taxable value of land described in subsection (1)(c) is computed by multiplying the value of
17 the land by seven times the taxable percentage rate for agricultural land."
18
19 Section 15-6-134, MCA, is amended to read:
20 "15-6-134. (1) Class four property
21 includes:
22 (a) subject to subsection (1)(e) (1)(f), all land, except that specifically included in another class;
23 (b) subject to subsection (1)(e) (1)(f):
24 (i) all improvements, including single-family residences, trailers, manufactured homes, or mobile
25 homes used as a residence, except those specifically included in another class;
26 (ii) appurtenant improvements to the residences, including the parcels of land upon which the
27 residences are located and any leasehold improvements;
28 (iii) vacant residential lots; and - 2025
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1 (iv) rental multifamily dwelling units.
2 (c) all improvements on land that is eligible for valuation, assessment, and taxation as agricultural
3 land under 15-7-202, including;
4 (d) 1 acre of real property beneath residential improvements on land described in 15-6-133(1)(c).
5 The 1 acre must be valued at market value.
6 (d) and 1 acre of real property beneath an improvement used as a residence on land eligible for
7 valuation, assessment, and taxation as forest land under 15-6-143. The 1 acre must be valued at market value.
8 (e) real property beneath commercial improvements and as much of the surrounding land that is
9 reasonably required to support the commercial improvements on land described in 15-6-133(1)(c) and real
10 property beneath commercial improvements and as much of the surrounding land that is reasonably required to
11 support the commercial improvements on land eligible for valuation, assessment, and taxation as forest land
12 under 15-6-143. The land must be valued at market value.
13 (e)(f) all commercial and industrial property, as defined in 15-1-101, and including:
14 (i) all commercial and industrial property that is used or owned by an individual, a business, a
15 trade, a corporation, a limited liability company, or a partnership and that is used primarily for the production of
16 income;
17 (ii) all golf courses, including land and improvements actually and necessarily used for that
18 purpose, that consist of at least nine holes and not less than 700 lineal yards;
19 (iii) commercial buildings and parcels of land upon which the buildings are situated; and
20 (iv) vacant commercial lots.
21 (2) If a property includes both residential and commercial uses, the property is classified and
22 appraised as follows:
23 (a) the land use with the highest percentage of total value is the use that is assigned to the
24 property; and
25 (b) the improvements are apportioned according to the use of the improvements.
26 (3) (a) Except as provided in 15-24-1402, 15-24-1501, 15-24-1502, and subsection subsections
27 (3)(b) and (3)(c), class four residential property described in subsections (1)(a) through (1)(d) of this section is
28 taxed at 1.11%. 1.35% of market value. a graduated rate as follows: - 2025
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Market ValueTax Rate first $50,000 0%$50,001 to $500,0001%$500,001 to $750,0001.25% $750,001 to $1 million1.3%$1,000,001 to $1.5 million1.4% $1,500,001 to $2 million1.89% greater than $2 million2%
1
2 (b) The tax rate for the portion of the market value of a single-family residential dwelling in excess
3 of $1.5 million is the residential property tax rate in subsection (3)(a) multiplied by 1.4.
4 (b) VacantTHE MARKET VALUE OF VACANT residential lots described in subsection (1)(b)(iii) with a
5 market value of $50,000 or less are taxed at 1% of market value$500,000 IS TAXED AT 1%
6.
7 (c) Rental T multifamily dwelling units described in subsection
8 (1)(b)(iv) with a market value of GREATER THAN $2 million or moreare taxed at IS 1.89% of market value if the
9 dwelling units are leased at 150% or less of the county fair market rent. The property owner must annually
10 certify lease rates to the department of revenue.
11 (B) T$50,000 OF CLASS FOUR RESIDENTIAL PROPERTY DESCRIBED IN
12(1)(A), (1)(B)(I), (1)(B)(II),(1)(D) THAT QUALIFIES FOR THE HOMESTEAD EXEMPTION PROVIDED FOR IN
13 [SECTION 4] IS EXEMPT FROM TAXATION AND TAXED AT A RATE OF 0%.
14 (C) T-FAMILY RESIDENTIAL DWELLING
15$1.5 MILLION IS THE RESIDENTIAL PROPERTY TAX RATE IN SUBSECTION (3)(A) MULTIPLIED BY 1.4.
16 (c)(4) The (a) Except as provided in subsection (4)(c) (4)(B), the tax rate for commercial and industrial
17 property described in subsections (1)(e) and (1)(f) IS 1.75% in excess of the exemption amount in subsection
18 (4)(b)$200,000 $400,000 is 1.89% the residential property tax rate in subsection (3)(a) multiplied by 1.4.
19 (b) The TAX RATE FOR THE first $200,000 $400,000 of market value for commercial and industrial
20 property of a person or business entity is exempt from taxation1.4%. - 2025
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1 (4)(c)(B)Property described in subsection (1)(e)(ii) (1)(f)(ii) is taxed at one-half the tax rate established
2 in subsection (3)(c) (4)(a).
3 (5) As used in this section, "fair market rent" means the fair market rent based on the size of the
4 dwelling as published annually by the U.S. department of housing and urban development."
5
6 NEW SECTION. SECTION 3. EFINITIONS. AS USED IN [SECTIONS 3 THROUGH 7] AND 15-6-134, THE
7:
8 (1) "HOMESTEAD EXEMPTION" MEANS THE TAX RATE PROVIDED FOR IN 15-6-134(3)(B).
9 (2) "OWNER" INCLUDES A PURCHASER UNDER CONTRACT FOR DEED AS DEFINED IN 70-20-115, A
1071-1-303,
1172-38-103.
12 (3) (A) "PRINCIPAL RESIDENCE" MEANS CLASS FOUR RESIDENTIAL PROPERTY:
13 (I) THAT IS A SINGLE-FAMILY DWELLING UNIT, UNIT OF A MULTIPLE-UNIT DWELLING, TRAILER,
14, OR MOBILE HOME AND THE PARCEL ON WHICH THE PRINCIPAL RESIDENCE IMPROVEMENTS ARE
15;
16 (II)7 MONTHS OF
17;
18 (III)
19; AND
20 (IV)MONTANA PROPERTY TAXES.
21 (B) AN OWNER WHO CANNOT MEET THE REQUIREMENTS OF SUBSECTION (3)()(II) BECAUSE THE OWNER’S
22
23MONTANA PROPERTY TAXES WHILE RESIDING IN EACH PRINCIPAL
247 CONSECUTIVE MONTHS FOR EACH TAX YEAR.
25 (4) "TAX YEAR 2025" MEANS THE PERIOD FROM JANUARY 1, 2025,D31, 2025.
26 (5) "TAX YEAR 2026" MEANS THE PERIOD FROM JANUARY 1, 2026,D31, 2026.
27
28 NEW SECTION. SECTION 4. OMESTEAD EXEMPTION. (1) THERE IS A HOMESTEAD EXEMPTION PROVIDED - 2025
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115-6-134(3)(B) FOR A PRINCIPAL RESIDENCE AS PROVIDED IN THIS SECTION.
2 (2) (A) BEGINNING IN TAX YEAR 2025, THE OWNER OF A PRINCIPAL RESIDENCE WHO APPLIED FOR AND
3TITLE 15, CHAPTER 1, PART 23, ON THE PRINCIPAL RESIDENCE IN
4 2023 OR 2024 AUTOMATICALLY QUALIFIES FOR THE HOMESTEAD EXEMPTION FOR TAX YEAR 2025
5(2)(C)(I) THROUGH (2)(C)(III) APPLY TO THE PRINCIPAL RESIDENCE FOR WHICH THE REBATE
6. IF THE OWNER DID NOT RECEIVE A PROPERTY TAX REBATE ON THE PRINCIPAL RESIDENCE FOR 2023 OR
7 2024, THE OWNER MAY APPLY FOR THE HOMESTEAD EXEMPTION ELECTRONICALLY OR BY MAIL ON A FORM PRESCRIBED
8JULY 1, 2025.APPROVED APPLICATIONS RECEIVED ELECTRONICALLY OR
9JULY 1, 2025,
10 (B) BEGINNING IN TAX YEAR 2026,
11(2)(A) MAY APPLY TO THE DEPARTMENT TO RECEIVE
12. T
13,
14MARCH 1. APPROVED APPLICATIONS RECEIVED ELECTRONICALLY OR POSTMARKED AFTER M
15 1.
16 (C) O, THE HOMESTEAD EXEMPTION REMAINS EFFECTIVE UNTIL THE END OF THE TAX YEAR
17:
18 (I);
19 (II); OR
20 (III).
21 (D) I(2)(C) OR [SECTION 6], ANY
22
23JANUARY 1.
24 (E) AN APPLICATION FOR A HOMESTEAD EXEMPTION MUST BE SUBMITTED ON A FORM PRESCRIBED BY THE
25:
26 (I)
27[3]. T
28[SECTION 5]. - 2025
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1 (II)
2;
3 (III);
4 (IV)’S
5.
6 (3) (A) EXCEPT AS PROVIDED IN SUBSECTION (3)(B), CLASS FOUR RESIDENTIAL PROPERTY OWNED BY AN
7.
8 (B) T
9
10.
11 (4) THE DEPARTMENT SHALL NOTIFY THE OWNER IF THE HOMESTEAD EXEMPTION IS APPLIED TO THE
12.
13
14 NEW SECTION. SECTION 5. HOMESTEAD EXEMPTION -- IMPROPER APPROVAL -- PENALTY FOR FALSE OR
15. (1) EXCEPT AS PROVIDED IN SUBSECTION (2), IF THE DEPARTMENT DETERMINES THAT AN
16, THE DEPARTMENT SHALL REVISE THE
17
1815-8-601.
19 (2) (A) A PERSON WHO FILES A FALSE OR FRAUDULENT APPLICATION FOR A HOMESTEAD EXEMPTION
20[SECTION 4] IS SUBJECT TO CRIMINAL PROSECUTION UNDER THE PROVISIONS OF 45-7-202.
21 (3) (A) IF A PERSON IS DETERMINED TO HAVE FILED A FALSE OR FRAUDULENT APPLICATION, THE
22
2315-8-601 AND THIS SECTION AND ASSESS A PENALTY AS PROVIDED IN THIS SUBSECTION (3). THE
24(3)(B) PLUS INTEREST
2515-16-102 CALCULATED FROM THE ORIGINAL DUE DATE OF THE TAXES, UNTIL PAID.
26 (B) T
27, DETERMINED USING THE TAX RATE PROVIDED FOR IN 15-6-134(3)(A), THE
28,, LESS THE ACTUAL PROPERTY TAXES PAID IN THE - 2025
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1.
2 (C) T
3.
4 (4) IF THE PERSON WHO FILED A FALSE OR FRAUDULENT APPLICATION NO LONGER OWNS THE PROPERTY
5, THE PENALTY PLUS INTEREST PROVIDED FOR IN
6(3) MAY BE RECOVERED AS ANY OTHER TAX OWED THE STATE. IF THE PENALTY PLUS INTEREST BECOMES
7, THE DEPARTMENT MAY ISSUE A WARRANT FOR DISTRAINT AS PROVIDED IN T15, CHAPTER 1,
8 7.
9 (5) EXCEPT AS PROVIDED IN SUBSECTION (4), IF THE DEPARTMENT DETERMINES THAT A FALSE OR
10, THE DEPARTMENT SHALL SEND THE REVISED ASSESSMENT WITH THE ADDITIONAL
11(3) TO THE COUNTY TREASURER IN THE COUNTY WHERE THE
12.
13 (6) THE COUNTY TREASURER SHALL DISTRIBUTE PROPERTY TAXES, PENALTY, AND INTEREST COLLECTED
14.
15 (7) A REVISED ASSESSMENT MADE UNDER THIS SECTION MUST BE MADE WITHIN 10 YEARS AFTER THE END
16.
17
18 NEW SECTION. SECTION 6. APPEAL OR DENIAL OF EXEMPTION(1) (A) IF THE DEPARTMENT DENIES AN
19, THE OWNER MAY REQUEST AN INFORMAL REVIEW OF THE DENIAL BY
20
21. T30
22[4(4)].
23 (B) T
24. EXTENUATING CIRCUMSTANCES
25, UNUSUAL, OR INFREQUENT EVENTS THAT ARE MATERIAL IN NATURE
26, AND THAT ARE NOT EXPECTED TO RECUR.
27 (C) AFTER THE INFORMAL REVIEW, THE DEPARTMENT SHALL DETERMINE THE CORRECT STATUS OF THE
28. IN THE - 2025
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1, THE DEPARTMENT SHALL STATE ITS REASONS FOR ACCEPTING OR DENYING THE APPLICATION.
2 (2) IF A PROPERTY OWNER IS AGGRIEVED BY THE DETERMINATION MADE BY THE DEPARTMENT AFTER THE
3(1), THE PROPERTY OWNER HAS THE RIGHT TO FIRST APPEAL TO THE COUNTY
4MONTANA TAX APPEAL BOARD, WHOSE FINDINGS ARE FINAL SUBJECT TO THE
5. AN APPEAL TO THE COUNTY TAX APPEAL BOARD, PURSUANT TO 15-15-102,
630 DAYS FROM THE DATE ON THE NOTICE OF THE DEPARTMENT'. IF THE COUNTY TAX
7MONTANA TAX APPEAL BOARD DETERMINES THAT THE HOMESTEAD EXEMPTION SHOULD APPLY,
8'S ORDER
9
10 NEW SECTION. SECTION 7. RULEMAKING AUTHORITY. T
11[SECTIONS 3 THROUGH 7].
12
13ECTION 8. SECTION 15-6-143,MCA, IS AMENDED TO READ:
14 "15-6-143. (1) Class ten property includes
15 all forest lands, as defined in 15-44-102, and property described in subsection (2).
16 (2) Any parcel of growing timber totaling less than 15 acres qualifies as class ten property if, in a
17 prior year, the parcel totaled 15 acres or more and qualified as forest land but the number of acres was reduced
18 to less than 15 acres for a public use described in 70-30-102 by the federal government, the state, a county, or
19 a municipality and, since that reduction in acres, the parcel has not been further divided.
20 (3) Class ten property is taxed at:
21 (a) 0.29% of its forest productivity value in tax year 2023;
22 (b) 0.27% of its forest productivity value in tax year 2024; and
23 (c) 0.37% 0.36% of its forest productivity value in tax years after 2024."
24
25 NEW SECTION. SECTION 9. ODIFICATION INSTRUCTION. [SECTIONS 3 THROUGH 7] ARE INTENDED TO BE
26TITLE 15, CHAPTER 6, AND THE PROVISIONS OF TITLE 15, CHAPTER 6, APPLY TO
27 [SECTIONS 3 THROUGH 7].
28 - 2025
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1 NEW SECTION. Section 10. Effective date. [This act] is effective on passage and approval.
2
3 NEW SECTION. Section 11.
4 meaning of 1-2-109, to property tax years beginning after December 31, 2024.
5 - END -