Senate Bill No. introduced by B. Beard aims to amend existing tax laws regarding tax-exempt organizations by clarifying that certain income, specifically rental income from leasing agricultural property, is considered unrelated business income and thus subject to taxation. The bill amends Sections 15-30-3404 and 15-31-102 of the Montana Code Annotated (MCA). Notably, it introduces new language stating that rental income from agricultural property is taxable under 15-31-121, while also removing previous provisions that classified income derived from certain accommodations as unrelated business income.

Additionally, the bill specifies that any unrelated business taxable income earned by exempt corporations, which results in a federal unrelated business income tax liability exceeding $100, must be taxed similarly to other corporate income. The bill also includes a new applicability date, stating that the provisions will take effect for income tax years beginning after December 31, 2025. This legislative change aims to ensure that tax-exempt organizations are held accountable for specific income streams that are not aligned with their exempt purposes.

Statutes affected:
LC Text: 15-30-3404, 15-31-102
SB0099_1(1): 15-30-3404, 15-31-102
SB0099_1(2): 15-30-3404, 15-31-102
SB0099_1(3): 15-30-3404, 15-31-102
SB0099_1(4): 15-30-3404, 15-31-102
SB0099_1(5): 15-30-3404, 15-31-102
SB0099_1(6): 15-30-3404, 15-31-102
SB0099_1(7): 15-30-3404, 15-31-102
SB0099_1(8): 15-30-3404, 15-31-102
SB0099_1: 15-30-3404, 15-31-102
SB0099_2(1): 15-30-3404, 15-31-102
SB0099_2(10): 15-30-3404, 15-31-102
SB0099_2(11): 15-30-3404, 15-31-102
SB0099_2(12): 15-30-3404, 15-31-102
SB0099_2(2): 15-30-3404, 15-31-102
SB0099_2(3): 15-30-3404, 15-31-102
SB0099_2(4): 15-30-3404, 15-31-102
SB0099_2(5): 15-30-3404, 15-31-102
SB0099_2(6): 15-30-3404, 15-31-102
SB0099_2(7): 15-30-3404, 15-31-102
SB0099_2(8): 15-30-3404, 15-31-102
SB0099_2(9): 15-30-3404, 15-31-102
SB0099_2: 15-30-3404, 15-31-102