Montana legislation · 2025 Regular Session
Montana SB337: Provide a 5 year prepaid property tax exemption during subdivision development
Status: Signed into law, May 16, 2025
What the bill says
An act revising property taxes for subdivision development projects; providing a temporary tax exemption for property that is part of a residential subdivision development project; providing for prepayment of property taxes that would have been collected if the subject property was not undergoing residential subdivision development; providing for termination of the exemption for certain events; providing rulemaking authority; amending section 15-10-305, mca; and providing an applicability date.
From the engrossed text:
AN ACT REVISING PROPERTY TAXES FOR SUBDIVISION DEVELOPMENT PROJECTS; PROVIDING A TEMPORARY TAX EXEMPTION FOR PROPERTY THAT IS PART OF A RESIDENTIAL SUBDIVISION DEVELOPMENT PROJECT; PROVIDING FOR PREPAYMENT OF PROPERTY TAXES THAT WOULD HAVE BEEN COLLECTED IF THE SUBJECT PROPERTY WAS NOT UNDERGOING RESIDENTIAL SUBDIVISION DEVELOPMENT; PROVIDING FOR TERMINATION OF THE EXEMPTION FOR CERTAIN EVENTS; PROVIDING RULEMAKING AUTHORITY; AMENDING SECTION 15-10-305, MCA; AND PROVIDING AN APPLICABILITY DATE. Section 1. Temporary exemption for residential subdivision development -- rulemaking. (1) Subject to the provisions of this section, property that is undergoing residential subdivision development is temporarily exempt from taxation at the start of the property tax year beginning January 1 after the following conditions are met: (a) the developer has submitted a timely property tax exemption application to the department and the department has approved the exemption application; and (b) within 30 days after approval of the exemption application and before January 1 of the property tax year in which the exemption is sought, the developer has submitted a property tax prepayment equal to five times the amount of property taxes and assessments due on the property in the most recent property tax year. The payment is payable to the county treasurer and must be distributed by the treasurer to funds and accounts in the same ratio as property tax collected on …