MontanaExempt corporations would pay tax on certain rent and lodging income
If enacted, exempt corporations receiving certain farm rent or income from taxed accommodations would count it as taxable business income.
What it does
Exempt corporations would count rent from certain agricultural property and income from accommodations subject to named state taxes as taxable business income.
Argument forCounting this income as taxable could help treat exempt organizations that earn it more like other businesses earning taxable income.
Argument againstOrganizations earning this income could owe state tax and have less money available for the religious, charitable, or other work that qualifies them for tax-exempt status.
More detail
The proposed law would count certain rent and accommodation income as unrelated business income subject to state tax. The provisions cover exempt corporations receiving rent from agricultural land or improvements in the listed property classes, and income from covered accommodations. Accommodation income must come from a place subject to one of the two named state taxes. The provisions would apply to income tax years beginning after December 31, 2025.
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Where it stands
- Introduced
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 23(H) Died in CommitteeDied
- Feb 27(S) Committee Executive Action - (S) Local Government
- Feb 18(H) Tabled in Committee - (H) TaxationMinor
- Vote recorded to_table. Result: pass.Lower
- Feb 5(H) Hearing - (H) Taxation
- Feb 3(H) 1st Reading
- Feb 3(H) Referred to Committee - (H) TaxationMinor
- Jan 31(S) Transmitted to House
- Vote recorded Do Pass. Result: pass.Upper
- Jan 31(S) 3rd Reading
- Jan 31(S) Scheduled for 3rd ReadingMinor
- Jan 30(S) 2nd ReadingMinor
- Vote recorded Do Pass. Result: pass.Upper
- Jan 30(S) Scheduled for 2nd ReadingMinor
- Jan 28(S) Committee Report - (S) Local Government
- Jan 28(S) Committee Executive Action - (S) Local Government
- Jan 27
- Vote recorded do_pass_as_amended. Result: pass.Upper
- Jan 16(S) Hearing - (S) Local Government
- Jan 15(S) Fiscal Note Printed
- Jan 15(S) Fiscal Note Unsigned
- Jan 14(S) Fiscal Note ReceivedMinor
- Jan 13(S) Referred to Committee - (S) Local GovernmentMinor
- Jan 7(S) 1st Reading
- Jan 6(S) Fiscal Note Requested
- Jan 6(S) Introduced
- Jan 6(LC) Draft Delivered to Requester
- 2024
- Dec 20(LC) Draft Ready for Delivery
- Dec 16(LC) Draft in Assembly
- Dec 13(LC) Draft in Final Drafter Review
- Dec 13(LC) Draft in Input/Proofing
- Dec 6(LC) Draft in Edit
- Dec 6(LC) Draft in Legal Review
- Dec 5(LC) Draft Taken Off Hold
- Nov 15(LC) Draft On Hold
- Nov 11(LC) Drafter AssignedIntroduced
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