House Bill No. introduced by M. Vinton and B. Ler aims to revise the taxation of Class Eight business equipment in Montana. The bill increases the amount of exempt business equipment and establishes that the business equipment exemption will be adjusted annually for inflation. Specifically, it provides that business equipment with a cost of less than $250 is exempt from taxation. Additionally, the bill includes provisions for reimbursement to local governments and tax increment financing districts under the entitlement share program, as well as to the Montana University System for any loss of revenue due to these changes.

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 annual inflation adjustments, and the introduction of new definitions related to the cost of personal property and the classification of individual pieces of property. The bill also clarifies that the exemption for personal property under $250 does not require inclusion in the market value calculations for taxation. 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(6): 15-1-123, 15-6-138
HB0844_2(7): 15-1-123, 15-6-138
HB0844_2: 15-1-123, 15-6-138