MontanaHB 10869th Legislature, Regular Session (2025)HouseWALLET

Eliminate reference to personal property farm manual for property tax purposes

Sponsored By: Eric Tilleman (Republican)

Became Law

Taxation (Generally)Taxation--Agriculture/LivestockTaxation--Property

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 0 costs, 5 mixed.

How Montana sets your property value

Beginning January 1, 2026, all taxable property is appraised at 100% of market value. For taxes, your assessed value equals the appraised value. Your taxable value equals market value times the tax rate for your property class. Different classes use different bases, like net or gross proceeds, productive capacity for farm land, market value for homes, or forest productivity for forest land.

How assessors pick a valuation method

Beginning January 1, 2026, the Department must account for physical, functional, and economic depreciation when using the cost approach. When it uses the income approach and has strong sales and cost data, it should rely on the two methods that produce similar values. Assessors can use non-sales methods when there are no good comparable sales or the sales model cannot value the property.

How the state values condos

Beginning January 1, 2026, residential condos use the sales comparison approach when enough comparable sales exist. Commercial condos use the income approach when good income data is available. If data is lacking, the cost approach applies. Units are valued individually, and common areas are allocated by each unit’s undivided interest.

Separate tax values for land and buildings

Beginning January 1, 2026, land and improvements are assessed separately when owners differ, when you ask in writing, or when the land is outside a city or town. This can change how taxes are split between the land and the building.

Farm equipment uses wholesale value guides

Beginning January 1, 2026, special mobile equipment and farm machinery are valued using average wholesale values from national guides. The Department adopts these guides by rule and uses Montana- or region-specific values when available. If an item is not listed, a statewide supplemental manual sets values with the same depreciation patterns. If the average wholesale category is missing, a comparable wholesale category is used.

Sponsors & Cosponsors

Sponsor

Eric Tilleman
Republican • House

Cosponsors

Wylie Galt
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 299 • No: 0

House vote • 3/26/2025

Do Concur

Yes: 50 • No: 0

House vote • 3/25/2025

Do Concur

Yes: 50 • No: 0

House vote • 1/22/2025

Do Pass

Yes: 100 • No: 0

House vote • 1/21/2025