Bill > HB528

This bill revises property tax rates for different types of property in Montana, specifically reducing the tax rates for agricultural (Class Three) and residential and commercial (Class Four) properties. For agricultural land, the tax rate will decrease from 2.16% to 1.7% of its productive capacity value. For residential properties, the tax rate will drop from 1.35% to 0.76% of market value, with a higher rate of 1.35% applied to residential properties valued over $1.5 million. Commercial properties will now be taxed at 1.35%, which differs from the previous method of calculating the rate. The bill also includes a provision that limits the reduction in revenue to school equalization and university funds to no more than $50 million for the 2025 tax year. Additionally, the bill amends sections of Montana law related to property taxation and university system levies, and specifies that these changes will be retroactively applied to tax years beginning after December 31, 2024, and the reappraisal cycle starting January 1, 2025. The goal appears to be providing tax relief to property owners while maintaining a balanced approach to revenue generation for local and state government services.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1989