Budget & Taxes

SB 172 allows Montana resort communities and areas (designated under state law with populations under 3,500 that rely heavily on tourism) to use an additional 1% resort tax - previously restricted to infrastructure - specifically for workforce housing. The bill amends tax code sections to explicitly permit this new allocation, alongside existing infrastructure uses, for communities that qualify under the defined criteria. It does not create new taxes but changes how existing resort tax revenue may be spent, directly affecting designated resort districts and communities. The policy shift aims to address housing needs for local workers in tourism-dependent areas.

HB 15 updates Montana's K-12 school funding formula to adjust for inflation by increasing specific dollar amounts annually. It directly affects all public school districts in Montana by raising base funding rates for high schools, elementary schools, and K-12 programs, including per-pupil payments for American Indian students and other targeted programs. Key provisions include annual increases for basic entitlements (e.g., $343,483 to $375,333 for high school districts by 2026) and adjustments to payments like the American Indian achievement gap ($235 to $256 per student). The bill amends existing law to ensure funding keeps pace with rising costs, effective starting with the 2024 fiscal year. The legislation was signed into law by the Governor on April 1, 2025.

HB 13 revises pay and benefits for all Montana state employees, including a $1.00 hourly or 2.5% base salary increase (whichever is greater) effective July 1, 2025, plus one-time lump-sum payments based on work hours: $1,040 for full-time employees, $780 for 20-40 hours/week, and $520 for under 20 hours/week. It also adjusts per diem rates for travel, increasing daily meal allowances to $8.25 (breakfast), $9.25 (lunch), and $16.00 (dinner) for in-state travel. The bill applies broadly to all state employees and was enacted into law on March 27, 2025.