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Montana Changes Personal Property Tax Laws

by Doug Thacker, Dallas, February 2014


Two major property tax law changes went into effect this year in Montana. One offers more businesses an exemption from personal property taxes. The other changes the date when property tax renditions are due.


Exemption Increased


Senate Bill 96 increases the statewide aggregate business personal property exemption from $20,000 to $100,000. As a result, the vast majority of the 17,000 companies in the state are now exempt.


Montana Governor Steve Bullock said, "The firms exempted from the tax will be able to do things like put it back into their businesses, take a little bit more money home, pay their employees a little more."


The total savings to businesses under the new law will amount to $11 million a year.


Forms Due March 1


Montana businesses are required to annually report all personal property owned as of January 1. Previously, the tax statements were due February 15, with no penalty if received by March 15.


Montana Administrative Rule change 42.21.158 makes all forms due March 1 with no opportunity to request a filing extension.


Taxpayers owning exempt business equipment are subject to limited reporting requirements. However, all new businesses must report their class eight property in order for its market value to be determined.