House Bill No. [insert bill number] introduced by S. Essmann, at the request of the Revenue Interim Committee, mandates that exempt entities report the beneficial use of their property to the Department of Revenue. Specifically, entities that lease property for the beneficial use of a nonexempt entity must submit an annual report detailing the leased property and a copy of the lease agreement. If the beneficial use is not reported as required, the property will be subject to taxation under existing provisions. This bill amends Section 15-6-201 of the Montana Code Annotated (MCA) to incorporate these new reporting requirements.

Additionally, the bill includes a new section that clarifies the taxation of property owned by exempt entities when leased for nonexempt use, ensuring that such properties are subject to taxation unless properly reported. The amendments to Section 15-6-201 also specify the categories of exempt property and the conditions under which these exemptions apply, reinforcing the need for compliance with reporting requirements to maintain tax-exempt status. The new section is intended to be codified as part of Title 15, chapter 6, part 2 of the MCA.

Statutes affected:
LC Text: 15-6-201
HB0025_1(1): 15-6-201
HB0025_1(2): 15-6-201
HB0025_1(3): 15-6-201
HB0025_1(4): 15-6-201
HB0025_1: 15-6-201