Senate Bill No. [insert bill number] proposes amendments to the Montana Code Annotated regarding the taxation of certain income generated by tax-exempt organizations. Specifically, it introduces provisions that classify certain income as unrelated business income, which is subject to taxation. The bill amends Section 15-31-102 to clarify that unrelated business taxable income, as defined by the Internal Revenue Code, must be taxed if it results in a federal unrelated business income tax liability exceeding $100. Additionally, it specifies that rental income from leasing agricultural property is considered unrelated business income and taxable under the relevant tax code.

The bill also makes several insertions and deletions to existing legal language. Notably, it adds exceptions to the types of income that may be exempt from taxation, including the clarification that rental income from agricultural property is taxable. Furthermore, it removes previous provisions regarding income derived from accommodations that were considered unrelated business income. The applicability of this act is set for income tax years beginning after December 31, 2025, ensuring that the new tax regulations will take effect in the following tax year.

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(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