Montana Title 15. Taxation § 15-6-506. Temporary exemption for senior care and housing development project--rulemaking

(1) If the governing body approves a petition for a senior care and housing development project pursuant to 15-6-504, the board of the tax-exempt senior care and housing sponsor may submit a property tax exemption application to the department.  The application must include the petition that was submitted to the governing body and the resolution approving the petition.  After the department has approved the exemption application, the property of the senior care and housing development project is temporarily exempt from all property taxation at the start of the property tax year beginning January 1 after the approval.

(2) At the time the exemption is granted, the department shall provide a notice to the clerk and recorder in the county where the property is located, and the clerk shall file the notice.  The notice must indicate that an exemption pursuant to this section has been granted on a form prescribed by the department.

(3) Subject to subsection (5), the temporary exemption applies to all real property owned by a property owner-operator or a tax-exempt senior care and housing sponsor within the senior care and housing development project, including new construction, for a period equal to the lesser of 5 years or until the development is final and operational.  A tax-exempt property owner-operator or tax-exempt senior care and housing sponsor may rent homes and multifamily projects for senior care facilities and housing without loss of the temporary exemption.

(4) During the year in which the exemption provided for in subsection (3) expires, a tax-exempt property owner-operator or the board of a tax-exempt senior care and housing sponsor may submit a renewal application to the department for an additional 5-year exemption.  The exemption applies to all property owned by the tax-exempt property owner-operator or tax-exempt senior care and housing sponsor that is used for senior care facilities and senior housing facilities.

(5) The exemptions in subsections (3) and (4) expire at the start of the property tax year beginning on January 1 for a lot or structure that is leased or sold by the tax-exempt senior care and housing sponsor to anyone other than a tax-exempt property owner-operator.

(6) Subject to subsection (7), the donor of property to a tax-exempt senior care and housing sponsor may retain a portion of land within the senior care and housing development project and receive a property tax exemption until the earliest of:

(7) The senior care and housing development project may not be composed of more than 20% of land that is used for complementary ancillary commercial businesses other than senior care facilities and senior housing, including but not limited to doctor's offices, rehabilitation facilities, grocery or convenience stores, neighborhood restaurants, pharmacies, and workforce housing related to employment at senior care facilities.