The 2023 Legislature passed House Bill 212, changing how business equipment is taxed in Montana. The new law increases the business equipment tax exemption from $300,000 to $1 million for tax year 2024.
Businesses whose statewide market value of equipment is $1 million or less are exempt from the business equipment tax. These businesses do not have a reporting requirement in 2024 unless: (1) they have acquired new personal property that would increase their equipment’s aggregate market value above the exemption amount; or (2) the department requests a personal property reporting form be completed.
Individuals and businesses owning business equipment (as of January 1, 2024) with an aggregate market value of more than $1 million statewide must report the equipment owned by March 1, 2024, to avoid a 20 percent penalty.
The department recently mailed letters to business owners with a known reporting requirement in 2024, letting them know it is time to report their business equipment online using the department’s TransAction Portal (TAP) at https://tap.dor.mt.gov. Online reporting forms are pre-populated with the business equipment reported in 2023. Owners will review the previously reported assets and make any needed additions and deletions. An immediate confirmation receipt will be sent after the report is submitted.
For more information, visit MTRevenue.gov or contact us at (406) 444-6900 or DORCustomerAssistance@mt.gov.