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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)

Became Law

Taxation (Generally)HousingPlanning and DevelopmentRevenue, LocalRevenue, StateTaxation--PropertyRule Making

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Bill Overview

Analyzed Economic Effects

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

Prepaid property tax break for subdivisions

Beginning January 1, 2026, property in a residential subdivision under development can be exempt from property tax for up to five years. The developer must get Department of Revenue approval and, within 30 days after approval and before January 1, prepay five times the prior-year taxes and assessments, plus a 5% fee, to the county treasurer. The treasurer distributes this money the same way as normal property taxes. The department sends a notice to the county, and the county clerk files it when the prepayment is made. The exemption covers all real property granted the exemption, including new homes, and it stays in place through sales, value changes, or ownership changes during the term. A lot’s exemption ends on January 1 after a habitable dwelling is built on that lot; if 95% of lots have dwellings earlier, the subdivision’s exemption ends December 31 of that year.

Simpler tax rules on land splits

Beginning January 1, 2026, when a land split involves property with this approved subdivision exemption, taxes are not based on the prior January 1 assessment. The department must still meet computation deadlines and may omit the new owner’s name if needed to meet the deadline.

Sponsors & Cosponsors

Sponsor

  • Greg Hertz

    Republican • Senate

Cosponsors

  • Sherry Essmann

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 226 • No: 119

Senate vote • 4/24/2025

Do Concur

Yes: 60 • No: 40

Senate vote • 4/14/2025

Do Concur

Yes: 55 • No: 41

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 Concurred

    4/24/2025House

  10. Committee Report--Bill Concurred

    4/23/2025House

  11. Committee Executive Action--Bill Concurred

    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 Concurred

    4/14/2025House

  24. Committee Report--Bill Concurred

    4/9/2025House

  25. Committee Executive Action--Bill Concurred

    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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