SENATE BILL NO. 165
INTRODUCED BY M. MACDONALD, D. SANDS
AN ACT REVISING PROPERTY TAXES ON CERTAIN DESTROYED PROPERTY AND ABANDONED MOVABLE HOUSING; PROVIDING AN EXEMPTION FOR UNINHABITABLE MOVABLE HOUSING; PROVIDING DEFINITIONS; AMENDING SECTION 15-6-219, MCA; AND PROVIDING AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
"15-6-219. Personal and other property exemptions. The following categories of property are exempt from taxation:
(1) harness, saddlery, and other tack equipment;
(2) the first $15,000 or less of market value of tools owned by the taxpayer that are customarily hand-held and that are used to:
(a) construct, repair, and maintain improvements to real property; or
(b) repair and maintain machinery, equipment, appliances, or other personal property;
(3) all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or equipping the family residence;
(4) a bicycle or a moped, as defined in 61-8-102, used by the owner for personal transportation purposes;
(5) items of personal property intended for rent or lease in the ordinary course of business if each item of personal property satisfies all of the following:
(a) the acquired cost of the personal property is less than $15,000;
(b) the personal property is owned by a business whose primary business income is from rental or lease of personal property to individuals and no one customer of the business accounts for more than 10% of the total rentals or leases during a calendar year; and
(c) the lease of the personal property is generally on an hourly, daily, weekly, semimonthly, or monthly basis;
(6) space vehicles and all machinery, fixtures, equipment, and tools used in the design, manufacture, launch, repair, and maintenance of space vehicles that are owned by businesses engaged in manufacturing and launching space vehicles in the state or that are owned by a contractor or subcontractor of that business and that are directly used for space vehicle design, manufacture, launch, repair, and maintenance;
(7) a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;
(8) air and water pollution control and carbon capture equipment, as defined in 15-6-135, placed in service after January 1, 2014; and
(9) a housetrailer, manufactured home, or mobile home that receives an exemption from the department based on abandonment, as provided in [section 2]; and
(9)(10) personal property used in the manufacture of ammunition components as provided in 30-20-204. (Subsection (9) (10) terminates December 31, 2024--sec. 16, Ch. 440, L. 2015.)"
Section 2. Exemption -- abandoned housetrailer, manufactured home, or mobile home. (1) There is a property tax exemption for movable housing that is uninhabitated because it is no longer fit for human habitation. To be eligible for the exemption, an applicant must meet the requirements of this section. This section does not apply to movable housing that receives an abatement for a natural disaster as provided in 15-16-611.
(2) If the movable housing has a productive use other than human habitation, the department shall assess a value to the property based on the productive use.
(3) (a) A claim for an exemption must be filed by March 1 of the tax year for which the exemption is sought on an application form provided by the department. An applicant that does not apply for an exemption during the first year of the valuation cycle may apply during the second year of the cycle.
(b) The exemption application form must contain an affirmation that the movable housing satisfies the provisions of this section and any other information required by the department that is relevant to the applicant's eligibility.
(c) When providing information to the department for qualification under this section, an applicant is subject to the false swearing penalties established in 45-7-202.
(d) The department shall investigate the information provided in an application and any information provided by a third party or local government. A local government may assist an owner of movable housing to submit an application for an exemption.
(4) After an exemption is approved, the applicant remains eligible for the exemption as long as the property continues to satisfy the provisions of this section.
(5) As used in this section, the following definitions apply:
(a) "Movable housing" means a housetrailer, manufactured home, or mobile home that is not treated as an improvement to real property as defined in 15-1-101.
(b) "Productive use" means used for livestock or storage of personal property.
Section 3. Codification instruction. [Section 2] is intended to be codified as an integral part of Title 15, chapter 6, part 2, and the provisions of Title 15, chapter 6, part 2, apply to [section 2].
Section 4. Applicability. [This act] applies to property tax years beginning after December 31, 2019.
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Prepared by Montana Legislative Services