HOUSE BILL NO. 386

INTRODUCED BY R. JORE

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR A REDUCTION IN INCOME TAXES BY PROVIDING A CREDIT EQUAL TO 4 PERCENT OF THE PROPERTY TAXES PAID ON RESIDENTIAL PROPERTY ; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Tax credit for residential property -- definition. (1) A taxpayer is allowed a refundable credit against taxes otherwise due under this chapter in an amount equal to 4% of the amount of property taxes actually paid by the taxpayer on the taxpayer's residential property. The credit is in addition to any deduction claimed for the property taxes paid.

(2) For purposes of this section, "residential property" means:

(a) a single-family residence or a rental multifamily dwelling unit, including a trailer, manufactured home, or mobile home;

(b) appurtenant improvements to the residence or dwelling;

(c) the parcel of land upon which the single-family residence or rental multifamily dwelling unit and the appurtenant improvements to the residence or dwelling unit are located; and

(d) leasehold improvements.

NEW SECTION. Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 15, chapter 30, part 1, and the provisions of Title 15, chapter 30, part 1, apply to [section 1].

NEW SECTION. Section 3. Effective date. [This act] is effective on passage and approval.

NEW SECTION. Section 4. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to tax years beginning after December 31, 1998.

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