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MontanaHB 42469th Legislature, Regular Session (2025)House

Revise taxes for class 17 data center property

Sponsored By: Katie Zolnikov (Republican)

Signed by Governor

TaxationEnergyTaxation--PropertyRevenue, State

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Data centers: parent or subsidiary count as single owner

A qualified data center meets the single-ownership test if a parent company owns 100% or if a wholly owned subsidiary holds the property. One or more buildings under that ownership count as one facility for the tax rules.

School mills apply to data centers in TIF

Class Seventeen data center property inside an urban renewal area or a targeted economic development district must pay the elementary, high school, and state equalization mills. This raises school-related property taxes on those properties. The change applies to property tax years beginning after December 31, 2024.

New rules on data center power use and sales

If a qualified data center sells power from its own generator to a public utility or electric co-op, the price cannot be higher than the generator’s cost to produce it. Cost includes capital costs, depreciation, on-site wages and benefits, fuel, supplies, utilities, and needed contracts; it excludes corporate admin, travel, and corporate legal costs. The buying utility or co-op may audit those costs each year at its own expense. Your generation or storage must be used at least 80% on-site each year, measured with utility-grade meters and certified annually. During a governor-declared power emergency, the 80% rule does not apply if you make that power available to the utility to help customers.

Data center infrastructure: shorter break, then half-rate

Dedicated communications lines owned or leased by a qualified data center qualify if construction started after June 30, 2017 and before July 1, 2037. These assets and some generation systems get the lower Class Seventeen rate (0.9% of value) for 10 years from when construction starts; this window was 15 years before. After 10 years, those generation systems are taxed as Class Thirteen property (6%). For certain listed property types, the law then charges half of the Class Thirteen rate for the next 10 years.

Sponsors & Cosponsors

Sponsor

  • Katie Zolnikov

    Republican • House

Cosponsors

  • Dave Fern

    Democrat • Senate

  • Marta Bertoglio

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 458 • No: 37

Senate vote • 4/22/2025

Do Concur

Yes: 44 • No: 6

Senate vote • 4/18/2025

Do Concur

Yes: 45 • No: 5

House vote • 3/26/2025

Do Pass

Yes: 84 • No: 15

House vote • 3/24/2025

AMD-HB0424.002.007 Zolnikov DO PASS

Yes: 99 • No: 0

House vote • 3/24/2025

AMD-HB0424.002.006 Fitzpatrick J DO PASS

Yes: 98 • No: 0

House vote • 3/24/2025

Do Pass As Amended

Yes: 88 • No: 11

Actions Timeline

  1. Chapter Number Assigned

    5/19/2025House

  2. Signed by Governor

    5/13/2025House

  3. Transmitted to Governor

    5/7/2025House

  4. Signed by President

    5/7/2025Senate

  5. Signed by Speaker

    5/6/2025House

  6. Returned from Enrolling

    4/25/2025House

  7. Sent to Enrolling

    4/22/2025House

  8. 3rd Reading

    4/22/2025Senate

  9. 2nd Reading

    4/18/2025Senate

  10. Committee Report

    4/8/2025Senate

  11. Committee Executive Action

    4/8/2025Senate

  12. Revised Fiscal Note Signed

    3/31/2025House

  13. Hearing

    3/31/2025Senate

  14. Revised Fiscal Note Received

    3/27/2025House

  15. Referred to Committee

    3/27/2025Senate

  16. Transmitted to Senate

    3/26/2025House

  17. 3rd Reading

    3/26/2025House

  18. Revised Fiscal Note Requested

    3/25/2025House

  19. 2nd Reading

    3/24/2025House

  20. 2nd Reading Motion to Amend

    3/24/2025House

  21. 2nd Reading Motion to Amend

    3/24/2025House

  22. 2nd Reading Pass Consideration

    3/19/2025House

  23. Revised Fiscal Note Printed

    3/3/2025House

  24. Fiscal Note Unsigned

    2/28/2025House

  25. Revised Fiscal Note Received

    2/27/2025House

Bill Text

  • Enrolled

    4/23/2025

    PDF

  • As Amended (Version 3)

    3/24/2025

    PDF

  • As Amended (Version 2)

    2/19/2025

    PDF

  • Introduced

    2/7/2025

    PDF

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