Bill > SB550

This bill revises the classification and taxation of certain telecommunications property in Montana by modifying Section 15-6-135 of the Montana Code Annotated. Specifically, the bill expands the definition of Class Five property to include telecommunications service providers who either exclusively serve rural areas or towns with 1,200 or fewer permanent residents, or those who provide services in or own property in no more than three counties. The bill maintains the existing 3% taxation rate for Class Five property while introducing new provisions for telecommunications infrastructure. For fiber optic or coaxial cable installed after July 1, 2021, the bill provides a 5-year tax exemption that phases out over 10 years, with a key requirement that the tax savings must be reinvested into installing new telecommunications infrastructure in Montana within two years, without passing these costs to consumers. The bill also includes provisions for potential tax recapture if a telecommunications provider fails to meet the reinvestment requirements, allowing local governing bodies to recover previously exempted taxes within 10 years. The legislation is effective immediately upon passage and applies retroactively to property tax years beginning after December 31, 2024, aiming to incentivize telecommunications infrastructure development in rural Montana areas.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC4173