House Bill 29, presented to the House Taxation Committee, would require the Department of Revenue (DOR) to review locally tax-exempt properties on an eight-year cycle and to maintain a public database listing exempt parcels and specified information. Proponents said periodic review will update records and recapture properties no longer qualifying for exemptions.

Sponsor Sherry Essman said the bill stems from a legislative-audit recommendation and prior work, including a state reapplication requirement after the 2015 Legislature. Essman said the proposal would require DOR to review tax-exempt parcels every eight years and publish a public database that lists the information specified in the bill. David Singer, a management and program analyst with the Legislative Audit Division, said the recommendation resulted from a performance audit of property tax exemptions and that the analysis considered costs and benefits of periodic reapplication.

Bob Story of the Montana Taxpayers Association supported the bill and described a practical challenge: small nonprofit organizations and volunteer-run entities frequently lack up-to-date contact information, making ongoing administration difficult. Robin Rude, deputy administrator of the DOR Property Assessment Division, described efforts to streamline the renewal process, including an online application and reusing documentation previously submitted in response to House Bill 389 reapplications. Rude said the department previously denied just under 400 properties after the 2015 reapplication process.

Committee members pressed for specifics about the review and public database. Rude said the database is already online at property.mt.gov (under exemptions) and in another, harder-to-find location that can display exempt parcels on a map integrated with cadastral mapping. She said the department plans to make the mapped resource easier to find.

Representative Minor asked what happens if an owner fails to complete an application; Rude said failure to provide required documentation will result in the property becoming taxable, with notice sent to the owner and an administrative appeal process available. Committee members also asked whether owners could provide new documentation during the review; Rude confirmed they may. The hearing record contains informational testimony from Department of Revenue staff and the legislative audit division; no opponents were recorded.