Revise intangible personal property exemption

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69th Legislature 2025 SB 169.1
- 1 - Authorized Print Version – SB 169
1 SENATE BILL NO. 169
2 INTRODUCED BY M. DUNWELL, C. NEUMANN, W. CURDY, J. ELLIS, J. MORIGEAU, S. WEBBER, D.
3 FERN, J. WINDY BOY, P. FLOWERS, D. HAYMAN, A. OLSEN, C. POPE
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING THAT CERTAIN PERSONAL PROPERTY IS NOT
6 EXEMPT FROM PROPERTY TAXATION; REVISING THE DEFINITION OF "INTANGIBLE PERSONAL
7 PROPERTY"; AMENDING SECTION 15-6-218, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE AND
8 AN APPLICABILITY DATE.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12Section 1. Section 15-6-218, MCA, is amended to read:
13 "15-6-218. Intangible personal property exemption -- definition. (1) Intangible personal property is
14 exempt from taxation.
15 (2) (a) For the purposes of this section, "intangible personal property" means the following property
16 if it is not integral to the operation of a business or an operating unit of a centrally assessed utility: personal
17 property that is not tangible personal property and that:
18 (a) has no intrinsic value but is the representative or evidence of value, including but not limited to
19 (i) certificates of stock, ;
20 (ii) bonds, ;
21 (iii) promissory notes, ;
22 (iv) licenses, ;
23 (v) copyrights, ;
24 (vi) patents, ;
25 (vii) trademarks, ;
26 (viii) contracts, ;
27 (ix) software, ; and
28 (x) franchises; or
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69th Legislature 2025 SB 169.1
- 2 - Authorized Print Version – SB 169
1 (b) lacks physical existence, including but not limited to goodwill.
2 (3) To the extent that the unit value of centrally assessed property includes intangible personal
3 property, that value must be removed from the unit value.
4 (b) The term does not include property used as an integral part of:
5 (i) the operation of a business; or
6 (ii) an operating unit of centrally assessed property."
7
8 NEW SECTION. Section 2. Effective date. [This act] is effective January 1, 2026.
9
10 NEW SECTION. Section 3. Applicability. [This act] applies to tax years beginning after December
11 31, 2025.
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