Revise subdivision family transfer laws

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69th Legislature 2025 SB 477.1
- 1 - Authorized Print Version – SB 477
1 SENATE BILL NO. 477
2 INTRODUCED BY T. MANZELLA
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING LAWS RELATED TO DIVISIONS OF LAND EXEMPT
5 FROM SUBDIVISION REVIEW; REQUIRING A PUBLIC HEARING; REQUIRING AN AFFIDAVIT; AND
6 AMENDING SECTION 76-3-207, MCA.”
7
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
9
10Section 1. Section 76-3-207, MCA, is amended to read:
11 "76-3-207. Divisions or aggregations of land exempted from review but subject to survey
12requirements and zoning regulations -- exceptions -- fees for examination of division. (1) Except as
13 provided in subsection (2), unless the method of disposition is adopted for the purpose of evading this chapter,
14 the following divisions or aggregations of tracts of record of any size, regardless of the resulting size of any lot
15 created by the division or aggregation, are not subdivisions under this chapter but are subject to the surveying
16 requirements of 76-3-401 for divisions or aggregations of land other than subdivisions and are subject to
17 applicable zoning regulations adopted under Title 76, chapter 2:
18 (a) divisions made outside of platted subdivisions for the purpose of relocating common boundary
19 lines between adjoining properties;
20 (b) divisions made outside of platted subdivisions for the purpose of a single gift or sale in each
21 county to each member of the landowner's immediate family;
22 (c) divisions made outside of platted subdivisions by gift, sale, or agreement to buy and sell in
23 which the landowner enters into a covenant for the purposes of this chapter with the governing body that runs
24 with the land and provides that the divided land will be used exclusively for agricultural purposes, subject to the
25 provisions of 76-3-211;
26 (d) for five or fewer lots within a platted subdivision, the relocation of common boundaries;
27 (e) divisions made for the purpose of relocating a common boundary line between a single lot
28 within a platted subdivision and adjoining land outside a platted subdivision. A restriction or requirement on the
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69th Legislature 2025 SB 477.1
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1 original platted lot or original unplatted parcel continues to apply to those areas.
2 (f) aggregation of parcels or lots when a certificate of survey or subdivision plat shows that the
3 boundaries of the original parcels have been eliminated and the boundaries of a larger aggregate parcel are
4 established. A restriction or requirement on the original platted lot or original unplatted parcel continues to apply
5 to those areas.
6 (2) Notwithstanding the provisions of subsection (1):
7 (a) within a platted subdivision filed with the county clerk and recorder, a division, redesign, or
8 rearrangement of lots that results in an increase in the number of lots or that redesigns or rearranges six or
9 more lots must be reviewed and approved by the governing body before an amended plat may be filed with the
10 county clerk and recorder;
11 (b) (i) a division within a platted subdivision is exempt from additional subdivision reviews and is
12 subject to applicable zoning regulations adopted under Title 76, chapter 2, unless the method of disposition is
13 adopted for the purpose of evading this chapter, if the division:
14 (A) is within a subdivision that has been approved by a local governing body;
15 (B) creates parcels of a size allowed within the subdivision; and
16 (C) is gifted or sold to a member of the landowner's immediate family;
17 (ii) an amended plat must be filed with the county clerk and recorder after a division provided in
18 subsection (2)(b)(i) occurs; and
19 (iii) except as otherwise provided in this subsection (2)(b), a restriction or requirement on the
20 platted subdivision continues to apply to a division allowed in subsection (2)(b)(i);
21 (c) a division of land exempted under subsection (1)(b) that is also located in a zoning district is
22 allowed if each family transfer parcel created by the division is at least 5 acres, unless the zoning district allows
23 for smaller lot sizes; and
24 (d) a division of land transferred to an immediate family member pursuant to subsection (1)(b) or
25 (1)(c) may be transferred regardless of age and may be owned jointly with that immediate family member's
26 spouse.
27 (3) (a) Subject to subsection (3)(b), a division of land may not be made under this section unless
28 the county treasurer has certified that all real property taxes and special assessments assessed and levied on
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1 the land to be divided have been paid.
2 (b) (i) If a division of land includes centrally assessed property and the property taxes applicable to
3 the division of land are not specifically identified in the tax assessment, the department of revenue shall prorate
4 the taxes applicable to the land being divided on a reasonable basis. The owner of the centrally assessed
5 property shall ensure that the prorated real property taxes and special assessments are paid on the land being
6 sold before the division of land is made.
7 (ii) The county treasurer may accept the amount of the tax prorated pursuant to this subsection
8 (3)(b) as a partial payment of the total tax that is due.
9 (4) The governing body:
10 (a) shall hold a public meeting and provide notice by registered or certified mail not less than 15
11 days prior to the date of the hearing to each property owner of record whose property is immediately adjoining
12 the division of land and to each water user from the same source of water supply in the same subbasin;
13 (a)(b) may shall examine a division or aggregation of land to determine whether or not the
14 requirements of this chapter apply to the division or aggregation;
15 (b)(c) may establish reasonable fees, not to exceed $400, for the examination;
16 (c)(d) shall complete the examination and approve or deny the application for a division or
17 aggregation of land under this section within 20 working days of the receipt of an application containing all
18 materials and information required by the governing body to conduct its review under regulations adopted
19 pursuant to 76-3-504(1)(p); and
20 (d)(e) may not impose conditions on the approval of a division or aggregation of land under this
21 section except for conditions necessary to ensure compliance with the survey requirements of Title 76, chapter
22 3, part 4.
23 (5) The person seeking to divide land under this section shall sign an affidavit that the proposed
24 use of an exemption under this section is not for the purpose of evading subdivision regulations under this
25 chapter.
26 (5)(6) An immediate family member or the spouse of an immediate family member who receives a
27 division of land pursuant to subsection (1)(b) or (2)(b) may not transfer or otherwise convey the division of land
28 for a period of up to 2 years after the date of the division unless the governing body sets a period of less than 2
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1 years. A governing body may authorize variances from these requirements to address hardship situations.
2 (6)(7) If a governing body can prove by documented evidence in a court of competent jurisdiction that
3 a person has knowingly evaded subdivision regulations through the use of a division of land pursuant to
4 subsection (1)(b) or (2)(b), that person is subject to a civil penalty of $5,000 for each division of land, payable to
5 the governing body, and the governing body may subject the division of land to the requirements of this chapter
6 for reviewing subdivisions."
7 - END -