A proposed bill aimed at reforming the tax classification for centrally assessed properties took center stage during the Montana Senate Taxation Committee meeting on March 31, 2025. The bill seeks to address the tax burden faced by small businesses operating across multiple counties, which currently face a steep tax rate increase from 3% to 6% as they expand their operations.

Senator Beard, the bill's sponsor, highlighted the complexities involved in appraising centralized properties, which include large corporations and utilities. He noted that the existing tax system is convoluted and disproportionately affects smaller entities, particularly those that operate in two or more counties. Beard proposed a solution that would limit the number of counties a business could operate in before facing a higher tax rate, effectively reducing the tax burden for smaller providers.

"This shift would be pretty minor," Beard stated, emphasizing that the goal is to prevent small businesses from being placed at a competitive disadvantage while also acknowledging their need to invest in technology and resources. He urged the committee to support the bill, which he believes would create a fairer tax environment.

The meeting also featured testimony from Rose Bender of the Montana Budget and Policy Center, who expressed concerns about the implications of the bill. However, no opponents were registered online, and the discussion remained focused on the potential benefits of the proposed changes.

As the committee deliberates, the outcome of this bill could significantly impact how small businesses are taxed in Montana, potentially easing their financial burdens and fostering a more equitable economic landscape. The next steps will involve further discussions and potential amendments before a final vote is taken.