Bill > SB4

This bill revises the taxation of homesites on agricultural property by modifying how a 1-acre homesite on agricultural land is valued for property tax purposes. Specifically, the bill introduces a new provision that requires the 1-acre homesite to be valued at market value, but with an important exemption: the valuation will be subject to a deduction equal to the statewide average value of a 1-acre homesite on agricultural land. This change affects how agricultural land with residential improvements is classified and taxed, updating several sections of Montana's tax code. The bill clarifies the classification of residential improvements on agricultural land, ensuring that a 1-acre area beneath a residential structure is explicitly addressed in property tax calculations. The changes will apply to property tax years beginning after December 31, 2026, giving local governments and property owners time to prepare for the new valuation method. The goal appears to be providing a more nuanced and potentially more favorable tax treatment for residential properties located on agricultural lands, balancing market value assessment with a standardized exemption to prevent excessive taxation.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/20251/LC0085