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Bill

HB 424

Revise taxes for class 17 data center property

2025 Regular Session Introduced by Katie Zolnikov

Montana law now revises tax treatment of Class 17 data center property to adjust state revenue and economic competitiveness in hosting digital infrastructure operations.

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Bill Summary · HB 424

Legislative bill overview

HB 424 revises the tax treatment of Class 17 data center property in Montana, modifying how these facilities are assessed and taxed by the state. The bill has been signed into law as of May 13, 2025. The specific changes to tax rates, assessment methods, or incentives are not detailed in the action summary provided.

Why is this important

Data centers represent significant economic investment and employment in states, making their tax treatment a key policy lever for economic development. How Montana taxes these facilities affects both state revenue and the competitiveness of the state in attracting or retaining data center operations, which increasingly power cloud computing, AI infrastructure, and digital services.

Potential points of contention

  • Tax competitiveness vs. state revenue: Changes that reduce data center taxes may attract investment but could decrease state revenue needed for schools, infrastructure, and services
  • Fairness across property classes: Preferential treatment for data centers raises questions about whether other businesses and property owners face relatively higher tax burdens
  • Long-term fiscal impact: Tax incentives or rate reductions may create baseline expectations that limit future revenue options or require subsidies to other sectors

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

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