Montana legislation · 2025 Regular Session
Montana SB539: Revise property taxes and special assessments
Status: Failed, May 23, 2025
What the bill says
A bill for an act entitled: "an act generally revising property taxation and special assessments; providing criteria for the determination of whether a local government proposal to collect revenue from an assessment on property is a tax or a fee; providing that certain property is not subject to rural special district assessments; providing for direct appeal to the montana tax appeal board for department of revenue final decisions involving property tax exemptions; providing a definition; amending sections 7-12-2108 and 15-2-302, mca…
From the engrossed text:
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING PROPERTY TAXATION AND SPECIAL ASSESSMENTS; PROVIDING CRITERIA FOR THE DETERMINATION OF WHETHER A LOCAL GOVERNMENT PROPOSAL TO COLLECT REVENUE FROM AN ASSESSMENT ON PROPERTY IS A TAX OR A FEE; PROVIDING THAT CERTAIN PROPERTY IS NOT SUBJECT TO RURAL SPECIAL DISTRICT ASSESSMENTS; PROVIDING FOR DIRECT APPEAL TO THE MONTANA TAX APPEAL BOARD FOR DEPARTMENT OF REVENUE FINAL DECISIONS INVOLVING PROPERTY TAX EXEMPTIONS; PROVIDING A DEFINITION; AMENDING SECTIONS 7-12-2108 AND 15-2-302, MCA; AND PROVIDING EFFECTIVE DATES, A RETROACTIVE APPLICABILITY DATE, AND AN APPLICABILITY DATE." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: NEW SECTION. Section 1. Assessment and fees -- distinction between special assessment and tax -- definition. (1) In addition to assessing taxes, local governments are authorized to impose various charges, fees, and assessments for designated purposes defined by statute and ordinance. (2) Except as provided in subsections (3) and (5), an assessment is presumed to be a tax that must be assessed based on taxable value pursuant to the provisions of Title 15, chapter 10. (3) Subject to subsection (4), to qualify as a special assessment: (a) the charges collected from the assessment must compensate the government entity for providing the services to the specific property that is assessed; (b) the benefit received by the property …