Montana SB322 increases the tax exemption for business equipment and provides reimbursements to local governments.

Montana SB322 increases the tax exemption for class eight business equipment, including agricultural implements, mining machinery, oil and gas production equipment, and manufacturing machinery. The bill also provides reimbursements to local governments and tax increment financing districts for the difference in property tax collections due to the increased exemption. The reimbursements are calculated based on the difference in property tax revenue that would have been collected if the exemption had not been amended. The bill applies to tax years beginning after December 31, 2025.

Montana SB322 increases the tax exemption for business equipment and provides reimbursements to local governments.

Montana SB322 increases the tax exemption for class eight business equipment, including agricultural implements, mining machinery, oil and gas production equipment, and manufacturing machinery. The bill also provides reimbursements to local governments and tax increment financing districts for the difference in property tax collections due to the increased exemption. The reimbursements are calculated based on the difference in property tax revenue that would have been collected if the exemption had not been amended. The bill applies to tax years beginning after December 31, 2025.