The proposed bill introduces a new classification for certain contiguous parcels of land, termed "class nineteen recreational property," which will be effective from January 1, 2025. This classification is specifically for parcels that do not qualify as agricultural land unless the owner provides supporting documentation. To qualify as agricultural, the landowner's federal adjusted gross income must not exceed $200,000. If these criteria are not met, the property will be taxed at a higher rate, specifically at the class three property rate multiplied by 7. The bill also amends various sections of the Montana Code Annotated (MCA) to incorporate this new classification, including provisions for the taxation of improvements on recreational property and clarifications regarding agricultural production definitions.

Additionally, the bill outlines the responsibilities of property owners regarding appeals of classifications and appraisals, ensuring transparency in the process. It includes significant changes such as the deletion of references to class nineteen property in certain sections and the insertion of new language to clarify eligibility for agricultural land valuation. The bill also specifies that land under certain acreage thresholds cannot be classified as agricultural without an application. Furthermore, it establishes clear procedures for tax deeds related to residential and recreational properties, including notification requirements for assignees and the cancellation of property tax liens if proper notice is not provided. Overall, the legislation aims to streamline property valuation and assessment processes while enhancing compliance with updated agricultural land classification criteria.

Statutes affected:
Introduced: 15-6-134, 15-6-229, 15-7-102, 15-7-111, 15-7-202, 15-8-111, 15-18-219