# Mont. Code Ann. § 15-6-202: 15-6-202 Freeport merchandise and business inventories exemption -- definitions > Montana · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-202 ## Section - **Citation:** Mont. Code Ann. § 15-6-202 - **Heading:** 15-6-202 Freeport merchandise and business inventories exemption -- definitions - **Jurisdiction:** Montana - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** MT Code / Title 15 / Chapter 6 / Part 2 / Section 15-6-202 ## Text 15-6-202 . Freeport merchandise and business inventories exemption -- definitions. (1) Freeport merchandise and business inventories are exempt from taxation. (2) (a) "Freeport merchandise" means stocks of merchandise manufactured or produced outside this state that are in transit through this state and consigned to a warehouse or other storage facility, public or private, within this state for storage in transit prior to shipment to a final destination outside the state and that have acquired a taxable situs within the state. (b) Stocks of merchandise do not lose their status as freeport merchandise because while in the storage facility they are assembled, bound, joined, processed, disassembled, divided, cut, broken in bulk, relabeled, or repackaged. (c) A person seeking to qualify the person's property as freeport merchandise shall make application to the department in the manner prescribed by the department. (3) (a) "Business inventories" include goods primarily intended for sale and not for lease in the ordinary course of business and raw materials and work in progress with respect to those goods. Except for farm implements and construction equipment described in subsection (3)(b), business inventories do not include goods that are leased or rented. (b) Business inventories include farm implements as defined in 30-11-801 or construction equipment as defined in 30-11-901 that are held pursuant to a purchase incentive rental program. (4) (a) For the purpose of subsection (3)(b), "purchase incentive rental program" means a program operated by a dealer of farm implements as defined in 30-11-801 or a dealer of construction equipment as defined in 30-11-901 under which the farm implement or construction equipment is owned by the dealership, held for sale, and rented to a single user of the farm implement or construction equipment as an incentive for the purchase of the property. (b) A purchase incentive rental program does not include a farm implement or construction equipment that is: (i) rented to a person for more than 9 months; (ii) rented more than once to the same person; or (iii) not owned by a farm implement dealership or construction equipment dealership. (c) All farm implements and construction equipment in a purchase incentive rental program must be reported to the department no later than March 31 of each year on a form provided by the department. ## Nearby sections - [Mont. Code Ann. § 15-6-201 15-6-201 Governmental, charitable, and educational categories -- exempt property](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-201.md) - [Mont. Code Ann. § 15-6-202 15-6-202 Freeport merchandise and business inventories exemption -- definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-202.md) - [Mont. Code Ann. § 15-6-203 15-6-203 Veterans' exemptions -- clubhouse -- land -- incompetent veterans' trusts](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-203.md) - [Mont. Code Ann. § 15-6-204 15-6-204 Money and credits exemption](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-204.md) - [Mont. Code Ann. § 15-6-205 15-6-205 State water conservation projects exempt](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-205.md) - [Mont. Code Ann. § 15-6-206 15-6-206 Irrigation and drainage facilities -- when exempt](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-206.md) - [Mont. Code Ann. § 15-6-207 15-6-207 Agricultural producer exemptions -- products -- unused beet equipment -- low-value buildings, implements, and machinery](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-207.md) - [Mont. Code Ann. § 15-6-208 15-6-208 Mineral exemptions -- small coal or metal mines producer -- travertine -- bentonite](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-208.md) - [Mont. Code Ann. § 15-6-209 15-6-209 Community services buildings exempt](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-209.md) - [Mont. Code Ann. § 15-6-213 15-6-213 Down-hole equipment in oil and gas wells exempt](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-213.md) - [Mont. Code Ann. § 15-6-214 15-6-214 Terminated](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-214.md) - [Mont. Code Ann. § 15-6-215 15-6-215 Exemption for motion picture and television commercial property](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-215.md) - [Mont. Code Ann. § 15-6-216 15-6-216 Exemption of improvements made to commercial buildings to remove barriers to persons with disabilities](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-216.md) - [Mont. Code Ann. § 15-6-217 15-6-217 Exemption for vehicle of certain health care professionals](https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-217.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MT_T15_C6_P2_S15-6-202. Check the current official text before relying on it. Not legal advice.