Property may be eligible if:

• The property couldn't be used in any business for at least six months before applying for the exemption;
• The remodeled, reconstructed, or expanded property value is at leat 5% higher than before the remodel; and
• The exemption is approved by the local government.

Benefit

A property tax exemption on the increased property value during construction and for five years after construction, then phased-out:

Construction Period (Up to 12 Months)	100% reduction
First Five Years	100% reduction
Sixth Year	80% reduction
Seventh Year	60% reduction
Eight Year	40% reduction
Ninth Year	20% reduction

The exemption only applies to the increase in property value.

Related Laws

15-24-1502, MCA