MT SB117

Cities, counties, and consolidated city-counties may establish a "large taxpayer reserve account" funded by 10% of annual revenue from newly taxable non-residential property to protect against revenue loss when major taxpayers cease operations or experience 25%+ decreases in taxable value

Increases the inflation adjustment cap for governmental property tax levies from one-half the average rate of inflation for the prior 3 years to the full average rate, with a maximum cap of 4%

Requires 75% of newly taxable class four (residential) property value and 50-60% of other newly taxable property value to be excluded from mill levy calculations, limiting how much local governments can increase revenue from new development

Local governments that create a large taxpayer reserve account may include 50% of newly taxable non-residential property in mill levy calculations; those without such accounts may only include 40%

Applies to property tax years beginning after December 31, 2025