MontanaSB 55069th Legislature, Regular Session (2025)SenateWALLET

Revise taxation of of certain telecommunications property

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Bill Overview

Analyzed Economic Effects

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

Property tax break for pollution controls

Air and water pollution control and carbon capture equipment placed in service after January 1, 2014 is exempt from property tax. The equipment must be identifiable, certified, and kept in substantial compliance; operating changes alone do not qualify. If it upgrades existing gear, only the added value is exempt. The Department of Environmental Quality sets certification rules, tracks compliance, and reports ongoing noncompliance, while the Department of Revenue sets valuation rules. Casual or isolated noncompliance does not end certification.

Fiber cable tax break, reinvestment required

Fiber or coaxial cable placed in service on or after July 1, 2021 is fully exempt from property tax for five years. After year five, the exemption drops by 20 percentage points each year and ends after ten years. To keep the break, owners must reinvest the tax savings in new Montana cable within two years of first claiming it, and the install cost must at least match the savings; these costs cannot be charged to customers. Cable installed with American Rescue Plan Act section 9901 funds is not eligible. Owners must keep records, and if they fail the rules, the state can end the break and local governments can recapture taxes with interest and penalties within ten years after the year first claimed.

Appeals process for tax certifications and valuations

You can appeal certification, classification, or valuation decisions to the Montana Tax Appeal Board. Name the Department of Environmental Quality for certification appeals and the Department of Revenue for classification or valuation appeals. This process applies starting January 1, 2025.

3% tax on class five property

The law defines which property is class five, including co‑op electric and phone assets, research and development firm property, ethanol‑production property during construction and the first three years, electrolytic reduction equipment, and some rural telecom property. Class five property is taxed at 3% of market value each year unless an exemption applies. These rules apply beginning January 1, 2025.

Sponsors & Cosponsors

Sponsor

Dave Fern
Democrat • Senate

Cosponsors

Courtenay Sprunger
Republican • House

Roll Call Votes

All Roll Calls

Yes: 285 • No: 10

Senate vote • 4/23/2025

Do Concur

Yes: 99 • No: 0

Senate vote • 4/22/2025

Do Concur

Yes: 99 • No: 0

Senate vote • 4/4/2025

Do Pass

Yes: 44 • No: 5

Senate vote • 4/3/2025