This bill proposes the establishment of property tax abatements for affordable rental housing in Montana, allowing local governments to opt into the program. It defines various types of affordable housing, including multifamily rental housing with five or more units, affordable rental housing with four or fewer units, accessory dwelling units, and affordable trailer courts. The bill outlines the process for local governments to approve abatement programs, including the requirement for resolutions and public hearings. It specifies that eligible properties will receive a full tax exemption in the first year, with a gradual increase in taxable value over the following years until reaching full taxation by the tenth year.

Additionally, the bill includes provisions for the recapture of abated taxes if the property no longer meets the eligibility requirements. It mandates that local governments notify affected taxing jurisdictions before approving any abatement resolutions. The bill is set to take effect for property tax years beginning after December 31, 2023, and aims to encourage the development of affordable housing options in the state.