Senate Bill No. introduced by B. Beard and S. Vinton seeks to revise the property taxation framework for Class 17 property, specifically targeting dedicated communications infrastructure. The bill introduces new definitions to clarify what constitutes dedicated communications infrastructure and removes the previous requirement that property of a certain value remains subject to Class 17 property taxation and local assessment. It establishes that property taxes for dedicated communications infrastructure will be assessed at a specific rate for a defined period before transitioning to a different classification, emphasizing local assessment for properties associated with qualified data centers.

Additionally, the bill amends Section 15-23-101 of the Montana Code Annotated (MCA) to update valuation cycles for centrally assessed properties, including railroad transportation property and telecommunications infrastructure, which will now be assessed annually or biennially. It also eliminates the requirement for the department to locally assess qualified data centers and dedicated communications infrastructure, classifying them under Class 17 property for local assessment. The legislation sets a new tax rate of 0.9% of market value for Class 17 property and outlines the necessary reporting requirements for property owners. The bill includes a retroactive applicability clause for property tax years beginning after December 31, 2024, ensuring that the new provisions will be in effect for relevant assessments starting from that date.

Statutes affected:
LC Text: 15-6-156, 15-6-162, 15-23-101
SB0540_1(1): 15-6-156, 15-6-162, 15-23-101
SB0540_1(2): 15-6-156, 15-6-162, 15-23-101
SB0540_1(3): 15-6-156, 15-6-162, 15-23-101
SB0540_1(4): 15-6-156, 15-6-162, 15-23-101
SB0540_1(5): 15-6-156, 15-6-162, 15-23-101
SB0540_1: 15-6-156, 15-6-162, 15-23-101
SB0540_2(1): 15-6-156, 15-6-162, 15-23-101
SB0540_2(10): 15-6-156, 15-6-162, 15-23-101
SB0540_2(11): 15-6-156, 15-6-162, 15-23-101
SB0540_2(12): 15-6-156, 15-6-162, 15-23-101
SB0540_2(13): 15-6-156, 15-6-162, 15-23-101
SB0540_2(14): 15-6-156, 15-6-162, 15-23-101
SB0540_2(2): 15-6-156, 15-6-162, 15-23-101
SB0540_2(3): 15-6-156, 15-6-162, 15-23-101
SB0540_2(4): 15-6-156, 15-6-162, 15-23-101
SB0540_2(5): 15-6-156, 15-6-162, 15-23-101
SB0540_2(6): 15-6-156, 15-6-162, 15-23-101
SB0540_2(7): 15-6-156, 15-6-162, 15-23-101
SB0540_2(8): 15-6-156, 15-6-162, 15-23-101
SB0540_2(9): 15-6-156, 15-6-162, 15-23-101
SB0540_2: 15-6-156, 15-6-162, 15-23-101
SB0540_3(1): 15-6-156, 15-6-162, 15-23-101
SB0540_3(2): 15-6-156, 15-6-162, 15-23-101
SB0540_3(3): 15-6-156, 15-6-162, 15-23-101
SB0540_3: 15-6-156, 15-6-162, 15-23-101