Bill > SB539

This bill revises property taxation and special assessments in Montana by establishing clearer criteria for distinguishing between taxes and special assessments. The bill creates a new legal framework defining when a local government charge qualifies as a special assessment versus a tax, requiring that special assessments must directly compensate the government for specific services, provide a commensurate benefit to the assessed property, and have a reasonably foreseeable future benefit. The legislation also modifies rules for extending proposed districts by excluding certain types of property (specifically, unimproved class three property that is not contiguous to the district and has alternative road access) from being subject to rural special district assessments. Additionally, the bill expands the Montana Tax Appeal Board's jurisdiction to directly hear appeals involving property tax exemptions, allowing taxpayers to challenge Department of Revenue decisions more efficiently. The changes aim to provide greater transparency and fairness in how local governments impose assessments and handle property tax-related disputes, with most provisions becoming effective on October 1, 2025, and some sections applying retroactively or to assessments and decisions made after specific dates in 2025 and 2026.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0991