The proposed bill seeks to establish property tax abatements for affordable rental housing in Montana, allowing local governments to participate in this initiative. It encompasses various types of affordable housing, including multifamily units with five or more units, smaller rental properties, accessory dwelling units, and notably, affordable trailer courts as defined by local authorities. The bill sets forth eligibility criteria and definitions for "affordable rental housing" and "rent-restricted" units, while providing a structured approach for local governments to manage these abatement programs.

Key features of the bill include a full exemption of the taxable value of eligible affordable rental units in the first year, with a gradual increase in taxable value over the next ten years, applicable only to the value of improvements and not land. Local governments must adopt market rents and hold public hearings for abatement applications. The bill also includes provisions for recapturing taxes if properties no longer meet eligibility requirements, ensuring that benefits are preserved for qualifying properties. Additionally, it mandates that taxpayers apply for tax treatment through local jurisdictions, which must notify affected taxing authorities before approving any resolutions related to these tax benefits. The provisions will take effect for property tax years starting after December 31, 2023.