The bill proposes a temporary property tax exemption for properties undergoing residential subdivision development in Montana. This exemption will take effect at the beginning of the property tax year following the approval of a timely application by the developer, who must also prepay property taxes equivalent to five times the amount due in the previous tax year. The exemption applies to all real property within the subdivision, including new residential construction, for a maximum of five years. However, the exemption will terminate if a habitable residential structure is constructed on any lot or if the subdivision development is completed before the five-year period ends.

Additionally, the bill amends Section 15-10-305 of the Montana Code Annotated to clarify that property granted a residential subdivision tax exemption will not be subject to the same tax computation rules as other properties during conveyances resulting in land splits. The bill also grants rulemaking authority to the department to implement these provisions and specifies that the act will apply to property tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-10-305
SB0337_1(1): 15-10-305
SB0337_1(2): 15-10-305
SB0337_1(3): 15-10-305
SB0337_1(4): 15-10-305
SB0337_1(5): 15-10-305
SB0337_1: 15-10-305
SB0337_2(1): 15-10-305
SB0337_2(10): 15-10-305
SB0337_2(11): 15-10-305
SB0337_2(12): 15-10-305
SB0337_2(13): 15-10-305
SB0337_2(2): 15-10-305
SB0337_2(3): 15-10-305
SB0337_2(4): 15-10-305
SB0337_2(5): 15-10-305
SB0337_2(6): 15-10-305
SB0337_2(7): 15-10-305
SB0337_2(8): 15-10-305
SB0337_2(9): 15-10-305
SB0337_2: 15-10-305
SB0337_X(1): 15-10-305
SB0337_X(2): 15-10-305
SB0337_X(3): 15-10-305
SB0337_X(4): 15-10-305
SB0337_X(5): 15-10-305
SB0337_X(6): 15-10-305
SB0337_X(7): 15-10-305
SB0337_X: 15-10-305