Audit‑driven bill would require eight‑year review of tax‑exempt properties and public database

Lawmakers on the House Taxation Committee heard that House Bill 29 implements a legislative audit recommendation to periodically re‑evaluate property tax exemptions and publish information about exempt parcels.

Sponsor Sherry Usman said HB29 stems from the legislative audit division's review of real property tax exemptions and recommends that the Department of Revenue review exempt properties every eight years and maintain a public database of parcels and related information. She told the committee that prior to recent audits, "if you got a tax exemption on property a 100 years ago you were probably still getting it as of 2015 whether you actually deserved it," and that the bill will help identify properties that no longer qualify.

David Singer of the Legislative Audit Division summarized the performance audit that recommended a periodic reapplication or review process and noted the costs and benefits of a targeted approach. Robin Rude, deputy administrator in the DOR's Property Assessment Division, said the department plans to streamline renewal with an online application and reuse previously submitted documentation; where records exist from HB389 reapplications, owners who previously provided articles of incorporation and supporting documents will not have to resubmit those items.

Proponents including the Montana Taxpayers Association said the initial review found many small nonprofit owners hard to contact and that recurring reviews would improve accountability. Committee members asked about appeal rights and whether new documentation could be submitted during the review; Rude said owners may provide additional material and there is an appeals process if a property is determined taxable. The sponsor closed urging a do‑pass recommendation.