All Roll Calls
Yes: 454 • No: 36
MontanaHB 42469th Legislature, Regular Session (2025)HouseWALLET
Revise taxes for class 17 data center property
Sponsored By: Katie Zolnikov (Republican)
Became Law
Taxation (Generally)EnergyTaxation--PropertyRevenue, State
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
Tax break for new fiber builds
Fiber or coax installed on or after July 1, 2021 is tax‑exempt for five years, then phases in 20% per year until fully taxable after 10 years. To keep the break, the owner must reinvest equal or more than the tax savings in new Montana cable within two years and may not charge customers for that cost. Cable funded by ARPA Section 9901 does not qualify, and owners must keep records. If the rules are not met, local government can recapture the exempted taxes with interest and penalties within 10 years after the year first claimed. Officials may cancel recapture if the failure was beyond the owner’s control.
Lower property taxes for data centers
The law sets a 0.9% property tax rate for class 17 data‑center property and removes it from class 13. A site qualifies if it has at least 300,000 sq. ft. and $150,000,000 in total cost (construction after June 30, 2017) or adds 25,000 sq. ft. with $50,000,000 invested in 48 months (construction after Jan 1, 2019), under single ownership. Cooling systems, substations, backup power, and new onsite generation and storage count as class 17 when mainly used onsite (80% each year with utility‑grade metering; this is waived during a governor‑declared emergency if the center supplies power to the utility). During construction, owners can get class 17 by certifying before March 1 and meeting all rules within two years. Dedicated communications lines owned or leased by the data‑center owner are class 17 for 10 or 15 years if built after June 30, 2017 and before the cutoff dates, then taxed as class 13.
Class 13 property taxed at 6%
Class 13 property has a taxable value equal to 6% of market value each year. This percentage is used to figure the property tax bill.
New rules for tax increment districts
Districts that adopted tax increment after Oct 1, 2019 can use funds for allowed project costs, bond costs, and reserves up to 125% of maximum debt service. If bonds were issued, any excess must be sent back to taxing jurisdictions in proportion to their mills. When a mill levy is excluded from the increment, the calculation uses the total taxable value inside the district. Districts created before Apr 6, 2017 exclude university mills; those from Apr 6, 2017 to June 30, 2022 also exclude new voter levies approved after adoption. Districts created after June 30, 2022 exclude university mills, half of school equalization mills, post‑adoption voter levies, and any mill share the local government designates. Class 17 property in these areas still pays the elementary, high school, and state equalization mills.
Cap on data center power sales
If a qualified data center sells power to a public utility or electric cooperative, the price cannot be above its cost of production. Cost includes construction, depreciation, on‑site wages and benefits, fuel, supplies, utilities, and needed contracted services. It excludes corporate administration, travel, and corporate legal services. The buyer may audit the seller’s operating costs each year at its own expense.
Sponsors & Cosponsors
Sponsor
Katie Zolnikov
Republican • House
Cosponsors
Dave Fern
Democrat • Senate
Mark Reinschmidt
Republican • House
Roll Call Votes
House vote • 4/22/2025
Do Concur
Yes: 44 • No: 6
House vote • 4/18/2025
Do Concur
Yes: 43 • 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: 98 • No: 0
House vote • 3/24/2025
AMD-HB0424.002.006 Fitzpatrick J DO PASS
Yes: 97 • No: 0
House vote • 3/24/2025
Do Pass As Amended
Yes: 88 • No: 10
Actions Timeline
Chapter Number Assigned
5/19/2025HouseSigned by Governor
5/13/2025HouseTransmitted to Governor
5/7/2025HouseSigned by President
5/7/2025SenateSigned by Speaker
5/6/2025HouseReturned from Enrolling
4/25/2025HouseSent to Enrolling
4/22/2025House3rd Reading Concurred
4/22/2025Senate2nd Reading Concurred
4/18/2025SenateCommittee Report--Bill Concurred
4/8/2025SenateCommittee Executive Action--Bill Concurred
4/8/2025SenateRevised Fiscal Note Signed
3/31/2025HouseHearing
3/31/2025SenateRevised Fiscal Note Received
3/27/2025HouseReferred to Committee
3/27/2025SenateTransmitted to Senate
3/26/2025House3rd Reading Passed
3/26/2025HouseRevised Fiscal Note Requested
3/25/2025House2nd Reading Passed as Amended
3/24/2025House2nd Reading Motion to Amend Carried
3/24/2025House2nd Reading Motion to Amend Carried
3/24/2025House2nd Reading Pass Consideration
3/19/2025HouseRevised Fiscal Note Printed
3/3/2025HouseFiscal Note Unsigned
2/28/2025HouseRevised Fiscal Note Received
2/27/2025House
Bill Text
Enrolled
4/23/2025
As Amended (Version 3)
3/24/2025
As Amended (Version 2)
2/19/2025
Introduced
2/7/2025