Tax Abatement Applications

Let us know your thoughts or questions on property tax abatement applications for manufacturing machinery, fixtures and equipment or new and expanding industries.

Manufacturing Machinery, Fixtures, and Equipment Property Tax Abatement Applications (MCA 15-6-138)

Montana Code Annotated 15-6-138 allows for a tax reduction on certain types of equipment defined as class eight property, such as machinery used in agriculture, mining and oil and gas production. To qualify for the reduction, companies that own this equipment must receive project pre-approval by the county commissioners prior to starting construction or apply to the County by March 1 of the year the property is first taxable. Equipment is taxable if it is in service as of Jan. 1. Meaning, equipment in service on Jan. 1 is taxable for that year and must file an abatement by March of the following year.

Within 120 days of receiving the application, the Missoula County commissioners must hold a public hearing to determine the impact the proposed reduction would have on County services and whether an 80%, 90% or 100% reduction is appropriate. The minimum allowable tax reduction is 80%. The County cannot deny qualifying abatement requests in their entirety.

On May 9, 2024, Missoula County commissioners adopted a policy regarding these tax abatement applications to give applicants relative consistency and certainty regarding their requests. View the policy under consideration under "documents" on the right-hand side.

New or Expanding Industry Property Tax Abatement Applications (MCA 15-24-1402)

Montana Code Annotated 15-24-1402 allows for a tax reduction on certain types of construction for new or expanding industries, such mineral extraction, renewable energy production, data centers, or operations that earn 50% or more of its income from out-of-state sales. To qualify for the reduction, companies must receive approval for an abatement prior to commencement of construction or apply by March 1 of the year the property is first taxable.

Within 120 days of receiving the application, the Missoula County commissioners must hold a public hearing to approve or deny the tax reduction.

If the tax reduction is approved, the improvements must be taxed at 25% or 50% of their taxable value for the first benefit year. That percentage then increases until the full taxable value is attained in the 10th year. In subsequent years, the property must be taxed at 100% of its taxable value.

Below are applications that are currently being considered by the commissioners for business equipment tax abatement. Let us know your comments on each open application, and ask us any questions you have under the “questions” tab.