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68th Legislature 2023 HB 943.1
1 HOUSE BILL NO. 943
2 INTRODUCED BY D. FERN
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING THE TAXATION OF PROPERTY USED AS A SHORT-
5 TERM RENTAL; PROVIDING A DEFINITION; AMENDING SECTION 15-6-134, MCA; AND PROVIDING AN
6 APPLICABILITY DATE.”
7
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
9
10 Section 1. Section 15-6-134, MCA, is amended to read:
11 "15-6-134. Class four property -- description -- taxable percentage. (1) Class four property
12 includes:
13 (a) subject to subsection (1)(e), all land, except that specifically included in another class;
14 (b) subject to subsection (1)(e):
15 (i) all improvements, including single-family residences, trailers, manufactured homes, or mobile
16 homes used as a residence, except those specifically included in another class;
17 (ii) appurtenant improvements to the residences, including the parcels of land upon which the
18 residences are located and any leasehold improvements;
19 (iii) vacant residential lots; and
20 (iv) rental multifamily dwelling units.
21 (c) all improvements on land that is eligible for valuation, assessment, and taxation as agricultural
22 land under 15-7-202, including 1 acre of real property beneath improvements on land described in 15-6-
23 133(1)(c). The 1 acre must be valued at market value.
24 (d) 1 acre of real property beneath an improvement used as a residence on land eligible for
25 valuation, assessment, and taxation as forest land under 15-6-143. The 1 acre must be valued at market value.
26 (e) all commercial and industrial property, as defined in 15-1-101, and including:
27 (i) all commercial and industrial property that is used or owned by an individual, a business, a
28 trade, a corporation, a limited liability company, or a partnership and that is used primarily for the production of
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68th Legislature 2023 HB 943.1
1 income;
2 (ii) all golf courses, including land and improvements actually and necessarily used for that
3 purpose, that consist of at least nine holes and not less than 700 lineal yards;
4 (iii) commercial buildings and parcels of land upon which the buildings are situated; and
5 (iv) vacant commercial lots; and.
6 (v) land and improvements used as a short-term rental.
7 (2) If a property includes both residential and commercial uses, the property is classified and
8 appraised as follows:
9 (a) the land use with the highest percentage of total value is the use that is assigned to the
10 property; and
11 (b) the improvements are apportioned according to the use of the improvements.
12 (3) (a) Except as provided in 15-24-1402, 15-24-1501, 15-24-1502, and subsection (3)(b), class
13 four residential property described in subsections (1)(a) through (1)(d) of this section is taxed at 1.35% of
14 market value.
15 (b) The tax rate for the portion of the market value of a single-family residential dwelling in excess
16 of $1.5 million is the residential property tax rate in subsection (3)(a) multiplied by 1.4.
17 (c) The tax rate for commercial property is the residential property tax rate in subsection (3)(a)
18 multiplied by 1.4.
19 (4) Property described in subsection (1)(e)(ii) is taxed at one-half the tax rate established in
20 subsection (3)(c).
21 (5) (a) For the purposes of this section, "short-term rental" means any individually or collectively
22 owned single-family house or dwelling unit, or any unit or group of units in a condominium, cooperative, or
23 timeshare that is offered for a fee for 30 days or less.
24 (b) The term does not include a room offered for a fee for 30 days or less if the room is within a
25 dwelling for which the owner can demonstrate occupancy for at least 7 months of the year."
26
27 NEW SECTION. Section 2. Applicability. [This act] applies to property tax years beginning on or
28 after January 1, 2024.
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68th Legislature 2023 HB 943.1
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-3- Authorized Print Version – HB 943
Statutes affected: Introduced: 15-6-134