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Audit-driven bill would require building-permit reports to Department of Revenue to reduce missed appraisals
Summary
Senate Bill 404 would require local governments or the Department of Labor & Industry to send building and electrical permits to the Department of Revenue within 60 days (sponsor said 90 days is possible). Supporters said the step would address audit findings that new construction is being missed in appraisal rolls.
Senator Dave Fearn presented Senate Bill 404 to address a gap identified in a Legislative Audit Division report that found new-construction appraisals were sometimes missed, leading to property-tax inequities. SB 404 would require local governments or the Department of Labor & Industry to electronically send copies of building or electrical permits for new construction to the Department of Revenue within 60 days; the sponsor signaled openness to extending that to 90 days.
Supporters said the change is a practical, low-cost way to ensure appraisal records are current, citing audit findings that suggested roughly 15% of new construction was not captured. The Montana Environmental Information Center endorsed the bill as an efficient remedy. The League of Cities & Towns registered soft opposition focused on the 30‑day timeframe — asking for 90 days to accommodate staffing and technical capacity in small, rural jurisdictions.
Officials from the Department of Revenue and the Legislative Audit Division participated as informational witnesses and said the measure addresses a recommendation from the audit. The Department of Labor & Industry also offered informational support about permitting processes.
What’s next: Sponsors suggested 90‑day language as a friendly amendment option to address municipal capacity concerns. Committee discussion ended with sponsor expressing willingness to consider a 90‑day window.
