Senate Bill No. [insert bill number] proposes to increase the Class Eight business equipment tax exemption in Montana. Specifically, it amends Section 15-6-138 to raise the exemption amount from the first $1 million to the first $1.3 million of market value for Class Eight property. Additionally, the bill outlines a reimbursement mechanism for local governments and tax increment financing districts under the entitlement share program, ensuring they receive compensation for the tax revenue lost due to the increased exemption. The reimbursement calculations will consider previous amendments to the tax code and will be distributed alongside entitlement share payments.

The bill also introduces a new section that establishes the applicability of these changes to tax years beginning after December 31, 2025. This timeline allows for a transition period for local governments and businesses to adjust to the new tax exemption levels. Overall, the legislation aims to provide financial relief to businesses while ensuring that local governments are compensated for any potential revenue losses resulting from the increased exemption.

Statutes affected:
LC Text: 15-1-123, 15-6-138
SB0322_1(1): 15-1-123, 15-6-138
SB0322_1: 15-1-123, 15-6-138