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Committee debates SB99: lawmakers weigh whether to treat certain nonprofit rental and lodging income as taxable
Summary
Senate Bill 99 would classify rental income from agricultural leases and short-term accommodations as unrelated business taxable income for nonprofits; proponents said the change would level the playing field with for-profits and cited a specific landowner’s tax filings, while nonprofit advocates warned the categorical change could sweep in mission-related activity and create confusion.
Senator Becky Beard opened the hearing on Senate Bill 99, explaining the bill would treat rental income from certain agricultural leases and short-term accommodations as unrelated business taxable income (UBTI) for tax-exempt organizations. Senator Beard told the committee the provision would take effect for the 2026 tax year with collections likely in fiscal year 2027 and that the Department of Revenue may need rule and form changes to implement it.
Charles (name as recorded), speaking for United Property Owners of Montana, said his organization was prompted by members worried that a wealthy nonprofit buying ranch land was 'rewilding' and earning substantial…
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