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HB 25

Require exempt entities to report beneficial use of property

2025 Regular Session Introduced by Sherry Essmann

Montana bill requiring tax-exempt entities to report property use for state oversight; died in committee without passage.

(H) Died in Process
#revenue #local #state #taxation--property #taxation
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Bill Summary · HB 25

Legislative bill overview

HB 25 would require Montana entities exempt from property taxation (such as nonprofits, government agencies, and charitable organizations) to report their beneficial use of property to state tax authorities. The bill aims to create transparency and documentation regarding how tax-exempt entities are utilizing their properties across the state.

Why is this important

Tax-exempt entities represent significant property holdings that generate no tax revenue for local governments and schools. Requiring beneficial use reporting could help policymakers understand the scope of tax-exempt properties, identify potential misuse, and inform future policy decisions about tax-exempt status. However, this also reflects ongoing tension between tax-exempt organizations and local governments over lost revenue.

Potential points of contention

  • Administrative burden: Exempt entities may view reporting requirements as costly paperwork with unclear benefit, particularly for smaller nonprofits
  • Privacy concerns: Detailed property use reporting could expose sensitive information about charitable operations or government activities
  • Purpose and enforcement: The bill lacks detail on what constitutes "beneficial use," how violations would be addressed, or whether non-compliance carries penalties
  • Revenue motivation: Some tax-exempt organizations may view this as preliminary to eliminating or restricting exemptions, affecting their operations

Compiled from official sources — confirm details with the bill’s official record.

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