Revise taxation of certain wind generation facilities
Summary
HB 915 revises how certain wind generation facilities are classified for Montana property tax purposes. The bill moves wind generation facilities out of class fourteen and into class thirteen, while also making conforming changes to related property tax classification statutes. Under the bill, wind generation facilities would no longer be taxed at the class fourteen rate of 3% of market value; instead, they would be taxed at the class thirteen rate of 6% of market value. The bill also updates statutory definitions and cross-references so that wind facilities are expressly excluded from other property classes where applicable.
In addition to the wind-specific changes, the bill restates and reorganizes portions of Montana’s property tax classification framework for electric generation, biomass, energy storage, communications infrastructure, and transmission lines. It preserves existing exclusions for certain facilities, clarifies the definition of “wind generation facilities,” and maintains special rules for certification, recapture, and tax treatment of other energy-related property. The bill provides an immediate effective date and applies retroactively to property tax years beginning after December 31, 2024.
Impact
The bill would increase the property tax classification rate for wind generation facilities by moving them from class fourteen to class thirteen, which would generally raise the taxable value assessment rate from 3% to 6% of market value. It would amend sections 15-6-137, 15-6-156, and 15-6-157, MCA, to remove wind facilities from class seven and class fourteen where necessary and to place them in class thirteen. The measure would affect wind project owners, electric utilities, exempt wholesale generators, and local governments that receive property tax revenue from these facilities.
Sentiment
The available voting history suggests the bill did not advance, despite unanimous support for a procedural motion to table it in committee. The recorded vote on the motion to table was 21-0, indicating no opposition at that stage, but the bill ultimately died in process. With no committee transcript available, the broader discussion record is limited, but the outcome suggests the proposal did not generate sufficient support to move forward.
Contention
The central point of contention is the tax burden on wind generation facilities. Supporters of the bill appear to have sought to increase property tax treatment for wind projects by reclassifying them into a higher-taxed class, while opponents or non-supporters likely viewed the change as unfavorable to renewable energy development or existing project economics. Because the bill died in process and no transcript is available, specific arguments are not documented here, but the classification shift from class fourteen to class thirteen is the key disputed issue.