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MontanaSB 33769th Legislature, Regular Session (2025)SenateWALLET

Provide a 5 year prepaid property tax exemption during subdivision development

Sponsored By: Greg Hertz (Republican)

Signed by Governor

TaxationHousingPlanningRevenue, LocalRevenue, StateTaxation--PropertyRule Making

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Prepay five years of taxes to qualify

Beginning with tax years starting January 1, 2026, a developer or other payer must make a large upfront payment to get the subdivision tax exemption. Within 30 days after Department of Revenue approval, and before January 1 of the exemption year, you must prepay five times last year’s property taxes and assessments on the property. You also pay a 5% fee on that prepayment. Pay the total to the county treasurer. The treasurer sends the money to the same funds in the same ratios as normal property tax.

Five-year property tax break for subdivisions

Beginning with tax years starting January 1, 2026, property in a residential subdivision under development can be exempt from property tax for up to five years. The exemption starts on January 1 after the Department of Revenue approves your application and the required prepayment is made. It covers all real property in the approved subdivision, including new home construction, even if lots are sold. A lot’s exemption ends the next January 1 after a habitable home is built on that lot. The subdivision’s exemption ends December 31 of the year when at least 95% of lots have habitable homes.

Sponsors & Cosponsors

Sponsor

  • Greg Hertz

    Republican • Senate

Cosponsors

  • Sherry Essmann

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 227 • No: 122

House vote • 4/24/2025

Do Concur

Yes: 60 • No: 40

House vote • 4/14/2025

Do Concur

Yes: 56 • No: 44

Senate vote • 3/27/2025

Do Pass

Yes: 34 • No: 16

Senate vote • 3/20/2025

AMD-SB0337.001.001 Hertz D/PASS

Yes: 46 • No: 3

Senate vote • 3/20/2025

Do Pass As Amended

Yes: 31 • No: 19

Actions Timeline

  1. Chapter Number Assigned

    5/16/2025Senate

  2. Signed by Governor

    5/13/2025Senate

  3. Transmitted to Governor

    5/5/2025Senate

  4. Signed by Speaker

    5/5/2025House

  5. Signed by President

    5/2/2025Senate

  6. Returned from Enrolling

    4/29/2025Senate

  7. Sent to Enrolling

    4/28/2025Senate

  8. Returned to Senate

    4/24/2025House

  9. 3rd Reading

    4/24/2025House

  10. Committee Report

    4/23/2025House

  11. Committee Executive Action

    4/23/2025House

  12. Revised Fiscal Note Printed

    4/22/2025Senate

  13. Fiscal Note Unsigned

    4/22/2025Senate

  14. Revised Fiscal Note Received

    4/22/2025Senate

  15. Taken from Table in Committee

    4/17/2025House

  16. Revised Fiscal Note Printed

    4/16/2025Senate

  17. Fiscal Note Unsigned

    4/16/2025Senate

  18. Revised Fiscal Note Received

    4/16/2025Senate

  19. Hearing

    4/15/2025House

  20. Hearing Canceled

    4/15/2025House

  21. Hearing

    4/14/2025House

  22. Rereferred to Committee

    4/14/2025House

  23. 2nd Reading

    4/14/2025House

  24. Committee Report

    4/9/2025House

  25. Committee Executive Action

    4/9/2025House

Bill Text

  • Enrolled

    4/28/2025

    PDF

  • As Amended (Version 2)

    3/20/2025

    PDF

  • Introduced

    2/17/2025

    PDF

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