Montana Code Annotated
Part 1. Corporate Income Tax Rate and Return
15-31-163. Capital gain exclusion from sale of mobile home park

15-31-163. (Temporary) Capital gain exclusion from sale of mobile home park. (1) Any capital gains income realized from the sale or exchange of a mobile home park as defined in 70-33-103 is excluded from adjusted gross income or gross income under chapter 30 or 31.
(2) To qualify for the exclusion under this section, the sale must be made to:
(a) a tenants' association or a mobile home park residents' association;
(b) a nonprofit organization under section 501(c)(3) of the Internal Revenue Code that purchases a mobile home park on behalf of tenants' association or mobile home park residents' association;
(c) a county housing authority created under Title 7, chapter 15, part 21; or
(d) a municipal housing authority created under Title 7, chapter 15, parts 44 and 45.
(3) A corporation, an individual, a partnership, an S. corporation, or a disregarded entity qualifies for the exclusion under this section. If the exclusion allowed under this section is taken by a partnership, an S. corporation, or a disregarded entity, the exclusion must be attributed to shareholders, partners, or other owners using the same proportion used to report the partnership's, S. corporation's, or disregarded entity's income or loss for Montana income tax purposes.
(4) For the purpose of this section, "tenants' association" or "mobile home park residents' association" means a group of six or more tenants who reside in a mobile home park, have organized for the purpose of eventual purchase of the mobile home park, have established bylaws of the association, and have obtained the approval by vote of at least 51% of the residents of the mobile home park to purchase the mobile home park.
(5) Property subject to an income or corporate tax exclusion under this section is not eligible for a property tax exemption under Title 15, chapter 6, part 2, while the property is used as a mobile home park.
15-31-163. (Effective January 1, 2024) Capital gain exclusion from sale of mobile home park. (1) Any capital gains income realized from the sale or exchange of a mobile home park as defined in 70-33-103 is excluded from Montana taxable income or gross income under chapter 30 or 31.
(2) To qualify for the exclusion under this section, the sale must be made to:
(a) a tenants' association or a mobile home park residents' association;
(b) a nonprofit organization under section 501(c)(3) of the Internal Revenue Code that purchases a mobile home park on behalf of tenants' association or mobile home park residents' association;
(c) a county housing authority created under Title 7, chapter 15, part 21; or
(d) a municipal housing authority created under Title 7, chapter 15, parts 44 and 45.
(3) A corporation, an individual, a partnership, an S. corporation, or a disregarded entity qualifies for the exclusion under this section. If the exclusion allowed under this section is taken by a partnership, an S. corporation, or a disregarded entity, the exclusion must be attributed to shareholders, partners, or other owners using the same proportion used to report the partnership's, S. corporation's, or disregarded entity's income or loss for Montana income tax purposes.
(4) For the purpose of this section, "tenants' association" or "mobile home park residents' association" means a group of six or more tenants who reside in a mobile home park, have organized for the purpose of eventual purchase of the mobile home park, have established bylaws of the association, and have obtained the approval by vote of at least 51% of the residents of the mobile home park to purchase the mobile home park.
(5) Property subject to an income or corporate tax exclusion under this section is not eligible for a property tax exemption under Title 15, chapter 6, part 2, while the property is used as a mobile home park.
History: En. Sec. 1, Ch. 389, L. 2009; amd. Sec. 3, Ch. 437, L. 2021; amd. Sec. 29, Ch. 503, L. 2021.

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