The bill proposes significant revisions to property tax regulations in Montana, particularly focusing on the limits imposed on governmental entities regarding property tax increases. It amends Section 15-10-420 of the Montana Code Annotated (MCA) to increase the inflation limitation for property tax levies from one-half of the average rate of inflation to a maximum of 4%. Additionally, it introduces a fixed limit on the amount of property taxes that can be generated, specifically stating that the levy cannot exceed the amount assessed in the previous year plus 4% of that amount. The bill also clarifies that a portion of newly taxable property will be included in the mill levy limitation calculation, allowing for 50% of newly taxable property to be considered.

Furthermore, the bill outlines the definition of newly taxable property and specifies various scenarios that qualify, such as annexation, construction, and property transfers. It also establishes that the provisions of the new law will apply to property tax years beginning after December 31, 2025. The changes aim to provide more predictable and manageable property tax increases for governmental entities while ensuring that taxpayers are not subjected to excessive tax burdens.

Statutes affected:
LC Text: 15-10-420
SB0117_1: 15-10-420
SB0117_1(3): 15-10-420
SB0117_1(2): 15-10-420
SB0117_1(1): 15-10-420