Local Economic Development Organizations Property Tax Exemptions
Overview
Local economic development organizations may qualify for property tax exemptions for business incubators, commercial buildings and land, and industrial parks.
Business Incubators
A business incubator owned or leased and operated by a local economic development organization is eligible for a property tax exemption.
The local economic development organization must be a private, nonprofit organization exempt from taxation under section 501(c)(3) or 501 (c)(6) of the Internal Revenue Code and is engaged in economic development and business assistance work in the local area.
Business incubator is defined in 15-24-1801, MCA, as a facility in which space is leased to new small businesses and that provides shared services and business assistance to the new businesses in order to improve their chances of success.
The services provided my include but not limited to receptionist, copying, computer, telephone, secretarial, and meeting services.
The assistance provided may include but is not limited to advice concerning marketing plans, business plans, accounting, and administration.
- Apply to the local governing body by March 1 to be considered for the current tax year.
- The local governing body must hold a public hearing.
100% tax exemption applies to the number of mills levied and assessed by the local governing body approving the exemption.
Commercial Buildings and Land
Commercial buildings and land owned by a local economic development organization that it intends to sell or lease to a profit-oriented, employment-stimulation business are eligible for a property tax exemption.
The local economic development organization must be a private, nonprofit organization exempt from taxation under section 501(c)(3) or 501(c)(6) of the Internal Revenue Code and is engaged in economic development and business assistance work in the local area.
Building and land is defined in 15-24-2001, MCA, as commercial improvements and land sold or donated to a local economic development organization for subsequent sale or lease to a profit-oriented, employment-stimulating business. The term includes commercial property that has not been used in business for 6 months immediately preceding the sale or donation of the building and land to the local economic development organization.
Commercial buildings and land must meet the requirements in 15-24-2002, MCA.
- Apply to the local governing body by March 1 to be considered for the current tax year.
- The local governing body must hold a public hearing.
100% tax exemption applies to the number of mills levied and assessed by the local governing body approving the exemption.
Exemption terminates on January 1 of the taxable year immediately following the sale or lease of the property to an entity other than a local economic development organization or a unit of local, state, or federal government.
Industrial Parks
An industrial park owned and operated by a local economic development organization or port authority is eligible for a property tax exemption.
The local economic development organization must be a private, nonprofit organization exempt from taxation under section 501(c)(3) or 501 (c)(6) of the Internal Revenue Code and is engaged in economic development and business assistance work in the local area.
Port authority means a port authority created under 7-14-1101 or 7-14-1102, MCA.
An industrial park is defined in 15-24-1901, MCA, as property zoned for light and heavy industry and includes fully developed or partially developed land and improvements and undeveloped land.
An industrial park must meet the requirements in 15-24-1902, MCA.
- Apply to the local governing body by March 1 to be considered for the current tax year.
- The local governing body must hold a public hearing.
100% tax exemption applies to the number of mills levied and assessed by the local governing body approving the exemption.
Exemption terminates on January 1 of the taxable year immediately following the sale or lease of the property to an entity other than a local economic development organization or a unit of local, state, or federal government.