Senate Bill No. [insert bill number] aims to revise property taxation and special assessments in Montana by establishing clear criteria to differentiate between taxes and fees imposed by local governments. The bill introduces a new section that defines assessments and outlines the conditions under which an assessment can be classified as a special assessment rather than a tax. Specifically, it states that assessments must provide a direct benefit to the property assessed, be proportional to the charges, and yield benefits within a reasonable timeframe. Additionally, assessments imposed by special districts created through petitions by property owners are presumed to be special assessments unless proven otherwise.

The bill also amends existing laws regarding the extension of proposed districts and appeals to the Montana Tax Appeal Board. It clarifies that certain properties, specifically those classified as class three property without residential structures and not contiguous to the district, are not subject to rural special district assessments. Furthermore, it allows for direct appeals to the Montana Tax Appeal Board for final decisions involving property tax exemptions. The effective date for most provisions is set for October 1, 2025, with some sections applying retroactively and others applicable to assessments imposed after December 31, 2026.

Statutes affected:
LC Text: 7-12-2108, 15-2-302
SB0539_1(1): 7-12-2108, 15-2-302
SB0539_1(2): 7-12-2108, 15-2-302
SB0539_1(3): 7-12-2108, 15-2-302
SB0539_1: 7-12-2108, 15-2-302