This Montana bill allows property owners to request a refund of property taxes if their local government fails to address public nuisances like illegal camping, loitering, or substance use on their property. Property owners must document expenses they incurred to mitigate these issues, and the refund amount cannot exceed the taxes they paid for the prior year. Local governments have 30 days to accept or reject refund applications, and if they reject the request, property owners can sue in court with the government bearing the burden of proof. The state treasurer will withhold refund amounts from local government entitlement payments, and the bill includes rules to prevent abuse while allowing property owners to apply annually as long as the nuisance persists.
HB 826 proposes to revise Montana's tobacco tax laws by increasing the state tax on cigarettes. The bill would raise the tax from $1.70 to $2.70 for each package containing 20 cigarettes. This tax is precollected by wholesalers and applies to individuals who purchase cigarettes for consumption. The bill also retains existing provisions regarding tax exemptions for sales to tribal members on Indian reservations.
HB 537 proposed creating a new "birth day" tax credit for resident taxpayers in Montana upon the birth of a child. The credit would be up to $3,000, or the total of the taxpayer's Montana income taxes, federal income taxes, and FICA contributions, whichever is less. This credit would be refundable, allowing taxpayers to receive a refund even if they have no state tax liability. The credit amount would be reduced for higher-income taxpayers and capped at $1,500 in certain situations, such as for parents filing separately or unmarried parents sharing custody. If passed, it would have applied to income tax years beginning after December 31, 2025.
HB 213 proposed to revise the property tax rates for Class Four residential and commercial properties. These properties include most residential homes, rental units, and commercial buildings. The bill would lower the tax rate for most residential properties from 1.35% to 0.76% of their market value. It also adjusted the tax rate calculation for single-family homes valued over $1.5 million and for commercial properties, changing their multiplier from 1.4 to 1.35 times the standard residential rate. If passed, these changes would have applied retroactively to tax years beginning after December 31, 2024.
HB 429, titled the "Inflation Protection Act of 2025," proposed creating a new state special revenue account within the state special revenue fund. This account would be initially funded by a $50 million transfer from the state's general fund by July 15, 2025, with additional funding from future legislative transfers. The bill authorized the Board of Investments to invest the funds in this account in precious metals, digital assets, and stablecoins. Any proceeds generated from these investments would remain within the account, affecting the state's financial management and investment strategies.
HB 910 is a legislative bill that aims to provide for the taxation of vapor products. It does this by amending the existing definition of "tobacco products" in state law (Section 16-11-102, MCA) to include substances consumed with devices like e-cigarettes, vape pens, and e-hookahs, regardless of nicotine content. This change would subject vapor products to the same tax regulations as other tobacco products. The provisions of this act would apply to products sold by wholesalers after June 30, 2025.
House Bill 950 sought to establish and maintain a Montana trade office in Israel, staffed by the Department of Commerce. The office's primary goal was to promote trade, tourism, and cultural exchange between Montana and Israel. It aimed to strengthen ties and expand opportunities in areas such as agriculture, technology, security, and educational programs. The bill proposed appropriating $500,000 from the general fund for the biennium beginning July 1, 2025, to fund the office. This act was intended to be effective July 1, 2025, and terminate on June 30, 2033.
HB 326, titled the "State Energy Resource Severance Act," would establish a new 10% tax on the sale price of electrical energy produced in the state. This tax would apply to electricity generated from sources such as water, wind, and solar, but specifically exempts coal-fired electrical generation. The bill also reduces the existing coal severance tax rate to match this new electrical energy production tax rate. Revenue from this new tax would be allocated to special accounts, primarily for local government infrastructure projects traditionally funded by coal.
HB 841 proposed a constitutional amendment in Montana to change the allocation of state sales or use tax revenue. It would have required that revenue from a statewide sales tax, capped at 4%, be used primarily to reduce property taxes funding public schools and the Montana University System. The bill allowed for this revenue to be appropriated for other purposes if three-fourths of the legislature voted to do so. If approved by voters in November 2026, the amendment would have taken effect on July 1, 2027.
HB 385 proposed establishing the School Mental Health Promotion Pilot Program, administered by the Office of Public Instruction. This program would have provided grants to Montana school districts to implement innovative, student-led, and locally determined initiatives aimed at improving student mental health. Districts applying for grants would have needed to demonstrate specific needs, broad community support in their application development, and plans for mental health promotion activities and program evaluation. The bill proposed annual grants ranging from $10,000 to $50,000 for a two-year period, with $250,000 appropriated annually from the general fund. The program was set to terminate on June 30, 2029.
