Montana's Senate Bill 540, introduced on March 25, 2025, aims to reform the assessment process for various types of property, particularly focusing on telecommunications and energy infrastructure. The bill mandates that the state’s Department of Revenue centrally assess specific properties annually or biennially, depending on the category, starting January 1, 2024. This includes telecommunication services, electric power lines, and dedicated communications infrastructure, which will now be classified under a new tax category.

The legislation seeks to streamline property tax assessments, ensuring that properties such as data centers and communication infrastructure are evaluated consistently and fairly. By establishing a clear framework for assessment frequency—annual for some properties and biennial for others—the bill addresses concerns about discrepancies in property tax evaluations that could lead to inequities in taxation.

Debate surrounding SB 540 has highlighted the balance between fostering economic growth in the tech and energy sectors and ensuring fair taxation practices. Proponents argue that a standardized assessment process will attract more investment in Montana’s growing tech industry, while opponents express concerns about potential tax burdens on smaller telecommunications companies that may struggle to comply with the new regulations.

The bill's retroactive applicability to property tax years beginning after December 31, 2024, adds another layer of complexity, as it could impact financial planning for businesses affected by these changes. Experts suggest that while the bill may enhance the state's revenue from property taxes, it could also lead to increased operational costs for certain companies, potentially affecting their competitiveness.

As SB 540 moves through the legislative process, its implications for Montana's economy and the tech sector will be closely monitored. The outcome could set a precedent for how property taxes are assessed in the future, influencing both local businesses and state revenue streams.