The Montana Legislature has introduced House Bill 928, aimed at amending property tax exemptions for land adjacent to transmission line right-of-way easements. The bill, introduced on March 29, 2025, seeks to clarify and update the existing tax exemption provisions under Section 15-6-229 of the Montana Code Annotated.

The primary purpose of House Bill 928 is to provide a property tax exemption for land located within 660 feet of the midpoint of a transmission line right-of-way. This exemption is intended to support the development and maintenance of electric transmission infrastructure, which is crucial for meeting the state's energy needs. The bill outlines specific application requirements for landowners or operators of transmission lines, including the submission of a legal description and a digitized survey of the property.

Key provisions of the bill include the stipulation that applications for the exemption must be filed by March 1 of the tax year in which the exemption is sought. Additionally, the bill mandates that any changes in land ownership or circumstances affecting eligibility must be reported to the department overseeing the exemptions.

Notably, the bill specifies that the exemption does not apply to land within incorporated cities or towns, platted subdivisions, or land used for residential, commercial, or industrial purposes. This limitation aims to ensure that the tax benefits are directed toward areas that genuinely support transmission infrastructure rather than urban developments.

The introduction of House Bill 928 has sparked discussions among lawmakers and stakeholders, particularly regarding its potential economic implications. Proponents argue that the bill will encourage investment in energy infrastructure, which could lead to job creation and improved energy reliability. However, some critics express concerns that the exemption may disproportionately benefit large energy companies at the expense of local tax revenues.

As the legislative process unfolds, the bill's future remains uncertain. If passed, House Bill 928 could significantly impact property tax structures related to energy infrastructure in Montana, shaping the landscape for both energy development and local government funding. The next steps will involve committee reviews and potential amendments as lawmakers weigh the bill's benefits against its implications for communities across the state.