House Bill No. [insert bill number] proposes an amendment to Montana's income tax law, specifically addressing the treatment of income from the sale of newly constructed residences. The bill introduces a provision that allows taxpayers to exclude 50% of the income from the sale of a newly constructed single-family residence or duplex, provided the sale price is below 85% of the county median residential value, as determined by periodic reappraisals. However, this exclusion is not applicable if the taxpayer receives additional compensation that, when combined with the sales price, exceeds the 85% threshold. The bill also modifies existing sections of the Montana Code Annotated (MCA), specifically Sections 15-30-2120 and 15-31-114, to incorporate this new income exclusion.

In addition to the new exclusion, the bill disallows a subtraction for taxpayers receiving additional compensation that exceeds the 85% threshold of the county median value. It also allows for the deduction of the fair market value of donated technological equipment to educational institutions under certain conditions. Furthermore, the bill mandates that the county median residential value be recalculated every two years during the periodic reappraisal process and defines it as the median value of a single-family residence, including land, rounded to the nearest thousand dollars. The provisions of this act will take effect for income tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-30-2120, 15-31-114
HB0895_1(1): 15-30-2120, 15-31-114
HB0895_1(2): 15-30-2120, 15-31-114
HB0895_1(3): 15-30-2120, 15-31-114
HB0895_1: 15-30-2120, 15-31-114