HB895

Montana HB895 would exclude 50% of income from the sale of newly constructed residences sold for less than 85% of the county median residential value.

Montana HB895 amends state income tax law to exclude 50% of the income from the sale of a newly constructed single-family residence or duplex sold for less than 85% of the county median residential value. The exclusion applies to income tax years beginning after December 31, 2025. The county median residential value is determined every two years as part of the periodic reappraisal. The exclusion is disallowed if the taxpayer received compensation in addition to the sales price that, when added to the sales price, exceeds 85% of the county median residential value.