The 2021 Legislature passed House Bill 303, changing how Montana taxes business equipment. The new law increases the business equipment tax exemption from $100,000 to $300,000 for tax year 2022.
Businesses whose statewide market value of equipment is $300,000 or less are exempt from the business equipment tax. These businesses will not have a reporting requirement in 2022 unless: (1) they have acquired new personal property that would increase their equipment’s aggregate market value above the exemption amount; or, (2) the department requests a personal property reporting form be completed.
Individuals and businesses with an aggregate market value of business equipment more than $300,000 statewide must report the equipment they owned as of Jan. 1 by March 1 to avoid a 20% penalty.
The department recently sent email notifications to business owners with a reporting requirement, letting them know it is time to report their business equipment online using the department’s TransAction Portal (TAP) at https://tap.dor.mt.gov.
All business equipment reported for 2021 is prepopulated to a business owner’s 2022 report. Businesses can use the sort and filter functions to quickly locate assets that need to be updated or deleted. After the report is submitted, the department will send an immediate confirmation receipt.