This bill aims to increase the Class Eight business equipment tax exemption, which will provide financial relief to businesses by reducing their tax burden. In addition to the exemption, the bill includes provisions for reimbursement to local governments, tax increment financing districts, school districts through guaranteed tax base aid, and the Montana University System to compensate for the anticipated loss of revenue resulting from the tax exemption.

The bill amends several sections of the Montana Code Annotated (MCA), specifically sections 15-1-123, 15-6-138, 15-10-420, and 20-9-366, as well as sections 12 and 13 of Chapter 506 from 2021. It also repeals sections 2, 6, 7, 8, and 14 of the same chapter, indicating a significant restructuring of the existing legal framework surrounding business equipment taxation and its associated financial impacts on local entities. The bill includes an applicability date, ensuring that the changes take effect in a timely manner.

Statutes affected:
HB0212_1.pdf: 15-1-123, 15-6-138, 15-10-420, 20-9-366
HB0212_2.pdf: 15-1-123, 15-6-138, 15-10-420, 20-9-366
HB0212_3.pdf: 15-1-123, 15-6-138, 15-10-420, 20-9-366
Amended: 15-1-123, 15-6-138, 15-10-420, 20-9-366
Introduced: 15-1-123, 15-6-138, 15-10-420, 20-9-366