Bill Summary – FastDemocracy

                                                   Unofficial Draft Copy
****                                              As of: 11/20/2024, 07:37:47
69th Legislature 2025                             Drafter: Megan Moore, ****                                      LC 0097
                                                  **** BILL NO. ****
                                                INTRODUCED BY ****
                               BY REQUEST OF THE DEPARTMENT OF REVENUE
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  A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING FOR THE REAPPRAISAL OF NON-CENTRALLY
  ASSESSED REAL PROPERTY ON A TWO-YEAR CYCLE; AMENDING SECTION 15-7-111, MCA; AND
  PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 15-7-111, MCA, is amended to read:
          "15-7-111.   Periodic reappraisal of certain taxable property. (1) (a) The department shall
  administer and supervise a program for the reappraisal of all taxable property within class three under 15-6-
  133, class four under 15-6-134, and class ten under 15-6-143 as provided in this section. All Except as
  provided in subsection (1)(b):
          (i)      all real property and all property within class three, class four, and class ten must be revalued
  every 2 years; and. Except as provided in (1)(b),
          (ii)     all other property must be revalued annually.
          (b) Beginning January 1, 2024, all All centrally assessed property and real property valued with
  centrally assessed property must be revalued in the time periods provided for in 15-23-101(2).
          (2) The department shall value newly constructed, remodeled, or reclassified property in a manner
  consistent with the valuation within the same class and the values established pursuant to subsection (1). The
  department shall adopt rules for determining the assessed valuation of new, remodeled, or reclassified property
  within the same class.
          (3) The reappraisal of class three, class four, and class ten property is complete on December 31 of
  every second year of the reappraisal cycle.
          (4) During the second year of each reappraisal cycle, the department shall provide the revenue interim
  committee with a report, in accordance with 5-11-210, of tax rates for the upcoming reappraisal cycle that will
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                                                   Unofficial Draft Copy
****                                               As of: 11/20/2024, 07:37:47
69th Legislature 2025                              Drafter: Megan Moore, ****                                      LC 0097
  result in taxable value neutrality for each property class.
          (5) The department shall administer and supervise a program for the reappraisal of all taxable property
  within class three, class four, and class ten. The department shall adopt a reappraisal plan by rule. The
  reappraisal plan adopted must provide that all class three, class four, and class ten property in each county is
  revalued by January 1 of the second year of the reappraisal cycle, effective for January 1 of the following year,
  and each succeeding 2 years.
          (6) (a) In completing the appraisal or adjustments under subsection (5), the department shall, as
  provided in the reappraisal plan, conduct individual property inspections, building permit reviews, sales data
  verification reviews, and electronic data reviews. The department may adopt new technologies for recognizing
  changes to property.
          (b) The department shall conduct a field inspection of a sufficient number of taxable properties to meet
  the requirements of subsection (5).
          (7) (a) In each notice of reappraisal sent to a taxpayer, the department, with the support of the
  department of administration, shall provide to the taxpayer information on:
          (i) the consumer price index adjusted for population and the average annual growth rate of Montana
  personal income; and
          (ii) the estimated annualized change in property taxes levied over the previous 10 years by the state,
  county, and any incorporated cities or towns within the county and local school average mills by county.
          (b) In every even-numbered year, the department shall publish in a newspaper of general circulation in
  each county the information required pursuant to subsection (7)(a) by the second Monday in October."
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          NEW SECTION. Section 2.         Effective date. [This act] is effective on passage and approval.              Commented [MM1]: Immediate effective date
                                                                                                                             required to make it applicable to property tax year 2025
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          NEW SECTION. Section 3.         Retroactive applicability. [This act] applies retroactively, within the
  meaning of 1-2-109, to property tax years beginning after December 31, 2024.
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