This bill amends existing tax laws in Montana to clarify that certain income generated by tax-exempt organizations is considered unrelated business income and therefore subject to taxation. Specifically, it introduces new provisions that classify rental income from leasing agricultural property and income derived from providing accommodations as unrelated business income taxable under the corporate income tax regulations. The bill also modifies the language regarding the taxation of unrelated business taxable income earned by exempt corporations, establishing that any such income resulting in a federal tax liability exceeding $100 must be taxed similarly to other corporate income.

Additionally, the bill outlines the requirements for audited partnerships making elections under the tax code, including deadlines for filing federal adjustments reports and payment of taxes owed by partners. It emphasizes the need for compliance with reporting and payment requirements for tiered partners and their partners. The new provisions will take effect for income tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-30-3404, 15-31-102