Senate Bill No. [number], introduced by G. Hertz, aims to revise property taxation and special assessments in Montana. The bill establishes criteria to differentiate between local government assessments classified as taxes or fees, emphasizing that certain property types are exempt from rural special district assessments. It introduces a new section defining assessments and outlining the conditions under which an assessment can be considered a special assessment rather than a tax. Additionally, the bill allows for direct appeals to the Montana Tax Appeal Board regarding final decisions made by the Department of Revenue concerning property tax exemptions.

The bill amends existing sections of the Montana Code Annotated (MCA), specifically sections 7-12-2108 and 15-2-302. Notably, it clarifies that property classified as class three, which lacks residential structures and is not contiguous to the district, is not considered "property benefited" for assessment purposes. The effective date for most provisions is set for October 1, 2025, with certain sections applying retroactively and others applicable to assessments imposed after December 31, 2026. The bill aims to enhance clarity and fairness in property taxation and assessment processes in Montana.

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