House Bill No. [insert bill number] aims to revise the taxation framework for Class Eight business equipment in Montana. The bill proposes to increase the exemption amount for business equipment, allowing for an annual adjustment based on inflation. Specifically, it establishes that business equipment with a cost of less than $250 will be exempt from taxation. Additionally, the bill mandates reimbursements to local governments and tax increment financing districts for any revenue losses incurred due to these changes, ensuring that the financial impact on local entities is mitigated.

The bill amends Sections 15-1-123 and 15-6-138 of the Montana Code Annotated (MCA). Notable changes include the adjustment of the exemption amount from $1 million to $1.75 million, with provisions for annual inflation adjustments. It also introduces definitions for terms related to the taxation of business equipment, clarifying what constitutes an individual piece of personal property and the associated costs. The new legal language emphasizes the importance of maintaining accurate records for property owners claiming tax exemptions and outlines the process for local governments to approve tax abatements for manufacturing machinery and equipment. The act is set to apply to tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-1-123, 15-6-138
HB0844_1(1): 15-1-123, 15-6-138
HB0844_1(2): 15-1-123, 15-6-138
HB0844_1(3): 15-1-123, 15-6-138
HB0844_1(4): 15-1-123, 15-6-138
HB0844_1(5): 15-1-123, 15-6-138
HB0844_1: 15-1-123, 15-6-138
HB0844_2(1): 15-1-123, 15-6-138
HB0844_2(2): 15-1-123, 15-6-138
HB0844_2(3): 15-1-123, 15-6-138
HB0844_2(4): 15-1-123, 15-6-138
HB0844_2(5): 15-1-123, 15-6-138
HB0844_2: 15-1-123, 15-6-138