The bill revises the taxation framework for properties used as short-term rentals by amending Section 15-6-134 of the Montana Code Annotated. It introduces a new definition for "short-term rental," which encompasses individually or collectively owned single-family houses, condominiums, cooperatives, or timeshares rented for a fee for 30 days or less. Additionally, it specifies that a room rented for a fee for 30 days or less is not considered a short-term rental if the owner can prove occupancy of the dwelling for at least seven months of the year. The bill also adds short-term rental properties to the classification of commercial and industrial properties, which are subject to specific tax rates.

The bill establishes that properties classified as short-term rentals will be taxed similarly to other commercial properties, with the tax rate being 1.4 times the residential property tax rate. The changes will take effect for property tax years beginning on or after January 1, 2024. This legislative update aims to clarify the tax obligations for property owners engaged in short-term rental activities, ensuring they are appropriately classified and taxed under Montana law.

Statutes affected:
Introduced: 15-6-134