HB 461 proposes a property tax exemption for certain owner-occupied residential properties. It directly affects homeowners aged 65 or older who have continuously used the property as their primary residence for at least five years. The exemption amount is calculated based on the increase in market value compared to a "base year" when the exemption was first approved. Homeowners must apply annually by March 1, and the exemption can terminate if the property is sold, undergoes new construction or significant remodeling, or is reclassified.
House Bill 895 (HB 895) proposed to allow individuals and businesses to subtract a portion of the income earned from the sale of a newly constructed residence when calculating their Montana state taxable income. This means that a part of the profit from selling these homes would be exempt from state income tax. The bill aimed to adjust Montana's tax code by creating this specific income exclusion. It would directly affect sellers of newly built homes by potentially reducing their state income tax liability.
HB 894 proposes to revise the method for appraising property for tax purposes in Montana. For most taxable property, its market value would be determined by calculating an average of its market value over a 10-year period. This calculation would specifically exclude the highest and lowest yearly values from that decade. This change directly affects property owners by altering the valuation method used for their property tax assessments.
This bill creates a new property tax classification for manufacturing facilities in Montana, affecting land and improvements used to transform materials into new products or assemble components for non-construction purposes. The legislation establishes that manufacturing property will be taxed at 1.47% of its market value, with specific rules for determining classification when a parcel contains mixed uses. The changes apply to property tax years beginning on or after January 1, 2026, and would impact businesses operating manufacturing operations in the state.
HB 373 aimed to revise the allocation of excess state lottery revenue, dedicating it to education funding instead of the state general fund. The Office of Public Instruction would distribute these funds quarterly to school districts based on a per-quality-educator formula. Districts would deposit these funds into their school flexibility funds, which could be used for various expenditures, including teacher salaries, benefits, housing, technology enhancements, and facility improvements.
HB 412 proposed a new property tax exemption for homeowners who modify their existing residential properties to add living space. This exemption would apply to the increase in market value due to the modification, up to a limit of 15% of the property's market value before the modification. However, it would not apply to modifications made within three years of new construction, and only one exemption could be granted every six years, terminating upon the sale of the property. The Department of Revenue would automatically grant this exemption, which was set to begin in tax years after December 31, 2025.
This bill would have established an income tax credit for individuals and corporations in Montana who make cash contributions to qualified community improvement organizations. These organizations are defined as tax-exempt groups with no paid staff that raise or distribute funds to support public facilities owned by the state or local government. The credit amount would be equal to the contribution, capped at the lesser of 10% of taxable income or $3,000, and could be carried forward for three years. An aggregate statewide limit on the total amount of credits claimed annually would have been set, starting at $2 million in 2026 and potentially increasing in subsequent years, requiring preapproval from the Department.
House Bill 34 creates a permanent Disaster Resiliency Fund within the state special revenue fund, managed by the Department of Military Affairs. This fund is intended to support state and local mitigation projects, provide matching funds for hazardous material equipment and training, and develop emergency management resources. Annually, $4 million from the general fund is transferred into this account, which has a maximum balance of $12 million. Any funds exceeding this cap are returned to the general fund. The money in the account is statutorily appropriated, allowing for ongoing use without further biennial legislative approval, directly affecting state and local disaster preparedness efforts.
House Bill 892 proposed to redirect a portion of the state's insurance premium tax revenue to help fund property tax relief. The bill would have mandated the transfer of $10 million annually from insurance tax collections to a new state property tax assistance account. This change aimed to reallocate state funds to provide financial assistance related to property taxes, indirectly affecting taxpayers. The bill's implementation was dependent on the passage of Senate Bill No. 90, which would establish the property tax assistance account.
HB 951 proposed a one-time transfer of $30 million from the state's general fund to the local road and bridge account. This action would have directed the state treasurer to complete the transfer by July 15, 2025. The funds were intended to support local road and bridge projects throughout the state, benefiting communities and their infrastructure.
