Senate Bill No. introduced by B. Beard aims to amend existing tax laws regarding income generated by tax-exempt organizations, specifically addressing unrelated business income that is subject to taxation. The bill modifies Section 15-31-102 of the Montana Code Annotated (MCA) to clarify that certain types of income, including rental income from leasing agricultural property, will be classified as unrelated business income and thus taxable under Section 15-31-121. Additionally, it introduces a new provision that requires exempt corporations with unrelated business taxable income exceeding $100, which results in a federal tax liability, to be taxed similarly to other corporate income.

The bill also makes several insertions and deletions to refine the definitions and conditions under which tax-exempt organizations are taxed. Notably, it removes previous language regarding income derived from accommodations subject to specific taxes, while adding exceptions for certain types of income. The applicability of this act is set for income tax years beginning after December 31, 2025, ensuring that the changes will not take effect until that date.

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