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 now be classified as unrelated business income and thus taxable under Section 15-31-121. Additionally, it establishes that any unrelated business taxable income exceeding $100, which results in a federal unrelated business income tax liability, must be taxed similarly to other corporate income.

The bill also amends Section 15-30-3404, detailing the election process for audited partnerships and their tax obligations. It specifies the timeline for filing federal adjustments reports and outlines the penalties for late submissions. The changes aim to ensure that tax-exempt organizations are held accountable for income that is not directly related to their exempt purposes, thereby broadening the tax base and increasing state revenue. The provisions of this act will take effect for income tax years beginning after December 31, 2025.

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