HB 861 allocates $1.1 million annually to Montana's Office of Public Instruction and $750,000 to the Department of Labor and Industry for fiscal years 2026 and 2027. The funds will provide statewide access to a K-12 digital toolkit containing state standards-aligned instructional materials across all subjects, including career and technical education resources aligned with Montana industry needs. This bill directly affects Montana public schools and students by expanding access to digital learning tools. It establishes a permanent funding base for these resources, effective July 1, 2025, though it was vetoed and not enacted.
SB 537 revises Montana's marijuana tax revenue distribution, directing funds from the marijuana state special revenue account to new and existing state accounts. It requires transferring excess funds annually to specific accounts, including 12% to the HEART account for addiction treatment and mental health programs, 20% to wildlife habitat projects, and 14% to behavioral health initiatives. The bill also allocates funds for law enforcement canine training, sexual assault evidence kits, and homeless shelter support, while modifying existing transfer rules for agencies like the Department of Fish, Wildlife, and Parks. These changes apply to all state agencies receiving marijuana tax revenue under Montana law.
HB 4 is a procedural budget amendment bill that allows unspent funds from Montana’s fiscal year 2025 appropriations to continue into future fiscal years (2026-2027) for specific programs. It directly affects state agencies like the Judiciary, Department of Justice, Public Instruction, and Fish/Wildlife/Parks by extending authority for existing initiatives, such as treatment courts, election security grants, school relief funds, and wildlife monitoring projects. The bill’s key mechanism is permitting carryover of unused budget authority without new legislative action, ensuring continuity for ongoing programs. As a procedural budget measure, it does not create new spending but adjusts timing for existing allocations.
SB 536 revises Montana's contractor gross receipts tax by creating an exemption for certain individuals and businesses in good standing, requiring them to apply for the exemption. It specifically allows employee stock ownership plan (ESOP) companies to claim a credit against real property taxes, extending the timeframe to claim this credit from 5 to 7 years. The bill also clarifies that this credit can offset property taxes paid in Montana for business-related property. These changes apply to contractors with public contracts exceeding $80,000 and take effect January 1, 2026.
SB 150 creates a new "cigar bar room" license endorsement for existing alcohol licensees that also hold gambling licenses (e.g., casinos or gaming venues). It allows premium cigar smoking only in a designated, enclosed area with strict requirements: cigars must meet specific handmade criteria (no filters, 100% tobacco), the venue must generate at least 10% of annual revenue from cigar sales, and no other tobacco/vaping products may be smoked or sold there. The designated area must have proper ventilation, be separate from nonsmoking zones, and exclude minors under 21. The bill also exempts these cigar rooms from standard clean indoor air laws and requires a 2026 study on Montana’s gaming industry.
SB 2 clarifies how local governments calculate property tax levies when a tax increment financing (TIF) district ends. It specifies that the value previously held in the TIF district (the "increment") must be treated as "newly taxable property" for tax calculations in the year of termination or the following year. This directly affects Montana local governments, as it ensures they can include this value when determining property tax revenues under existing levy formulas, without treating it as new construction or annexation. The bill amends Montana Code Annotated sections 15-10-420 and 20-9-336 to define these rules clearly.
SB 322 increases Montana's tax exemption for business equipment by setting a $500 threshold, meaning equipment costing under $500 would be automatically exempt from taxation. It also requires annual inflation adjustments to the exemption amount and modifies tax code sections to clarify definitions and eligibility. Local governments and tax increment financing districts would receive reimbursements for lost property tax revenue due to these changes. The bill directly affects Montana businesses purchasing equipment under $500 and local governments managing property tax revenue.
SB 90 would provide property tax relief to Montana homeowners with primary residences by using lodging and rental car tax revenue. Homeowners would need to apply for certification by March 1, proving they live in the home at least 7 months yearly and that the property value is under $1 million. Counties would apply the credit directly to property tax bills using annual funding based on certified residences, with penalties for false applications. The bill specifies that assistance won’t affect local mill rates and requires Department of Revenue certification of eligible primary residences.
HB 560 would have established a Montana Hunters' and Anglers' Community Fund, allowing donors to contribute $1 or more above the cost of wildlife conservation licenses. Funds collected would support grants for small rural communities (under 7,500 people) through the Department of Commerce, including projects like school improvements, food banks, or student programs. Grants would be limited to $2,000 (small) or $20,000 (large), with eligibility restrictions barring political activities and entities involved in lawsuits. The bill created a review board appointed by legislative leaders and the governor, and it died in committee in May 2025 without becoming law.
HB 528 revises Montana property tax rates for agricultural, residential, and commercial property. It lowers the tax rate for class three agricultural land from 2.16% to 1.7% of its productive capacity value, and reduces the tax rate for class four residential property from 1.35% to 0.76% of market value. Commercial property rates remain at 1.35% of market value but include specific adjustments for properties over $1.5 million in value. The bill applies retroactively to tax years beginning after December 31, 2024, and the 2025 reappraisal cycle.
