The bill proposes a temporary property tax exemption for properties undergoing subdivision development in Montana. To qualify for this exemption, developers must submit a timely application to the department, which must be approved. Additionally, developers are required to prepay property taxes equal to five times the amount due from the previous tax year. The exemption applies to all real property within the subdivision for a maximum of five years, but it will terminate if a habitable dwelling is constructed on any lot or if the subdivision development is completed, defined as at least 95% of lots having habitable dwellings.

The bill also amends Section 15-10-305 of the Montana Code Annotated, clarifying that property tax computations for conveyances resulting in land splits will consider the exemption for properties granted a subdivision tax exemption. Furthermore, the bill 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