Bill > HB25

This bill requires certain tax-exempt entities to report when they lease property for use by non-exempt entities or for non-exempt purposes. Under the new provisions, if a property owned by an entity listed in the tax exemption categories (such as government agencies, churches, or charitable organizations) is leased to a non-exempt entity, that property becomes subject to taxation. Exempt entities must now submit an annual report to the Department of Revenue that includes a description of the leased property and a copy of the lease agreement. If an entity fails to properly report the leased property's beneficial use, the property will be subject to a revised assessment under existing tax laws. The bill aims to ensure that tax-exempt properties are not being used in ways that would undermine their tax-exempt status, such as generating profit or being used for purposes unrelated to the entity's core mission. By requiring detailed reporting and creating potential financial consequences for non-compliance, the bill seeks to increase transparency and accountability for organizations receiving property tax exemptions.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/20251/LC0077