Senate Bill No. introduced by G. Hertz aims to revise property taxes specifically for residential subdivision development projects. The bill provides a temporary tax exemption for properties undergoing residential subdivision development, which will be effective starting January 1 of the property tax year following the approval of a timely exemption application by the developer. To qualify for this exemption, the developer must also prepay property taxes equivalent to five times the amount due in the most recent tax year. The exemption applies to all real property within the subdivision, including new construction of residential property, for a maximum of five years, but will terminate if a habitable residential structure is constructed on any lot.

Additionally, the bill amends Section 15-10-305 of the Montana Code Annotated to clarify that property taxes for conveyances resulting in a land split will be based on the property as assessed on January 1 preceding the conveyance, with an exception for properties granted a residential subdivision property tax exemption. The bill also includes provisions for rulemaking by the department to implement these changes and specifies that the new law 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(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: 15-10-305