MT SB539

Establishes legal criteria distinguishing special assessments from taxes: charges must compensate government for services to the specific property, benefits must be commensurate with the assessment amount, and benefits must be realized in a reasonable timeframe

Creates presumption that property assessments are taxes (based on taxable value) unless they meet special assessment criteria, while assessments from petition-created districts are presumed to be special assessments

Exempts class three agricultural property from rural improvement district assessments when the parcel contains no residential structures, is not contiguous to the district, and has legal road access outside the district

Adds property tax exemption decisions to matters eligible for direct appeal to the Montana Tax Appeal Board, bypassing county-level appeals

Effective October 1, 2025, with assessment distinction criteria applying to assessments imposed after December 31, 2026, and rural district exemptions applying retroactively to assessments after December 31, 2025