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.
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 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 321 proposes three tax credits to support Montana families and child-care providers. It would provide a $1,200 annual credit per child under age 5 for eligible residents (with income limits of $40,000 single/$80,000 married filing jointly), a $1,000 credit for child-care workers employed at least 6 months (20+ hours weekly), and a $2,500 employer credit for businesses offering dependent care assistance. All credits adjust annually for inflation and require filing a Montana tax return. The bill directly affects low-to-moderate-income families, child-care workers, and employers who provide on-site or subsidized care. (Note: The bill died in committee on May 23, 2025, and did not become law.)
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.
House Resolution 7 (HR 7) requests that members of the Montana State Legislature, when introducing or amending bills to include new spending, also identify existing programs from which funds would be reallocated to cover those new appropriations. This means any bill proposing new expenditures would need to specify how those funds would be offset within the state budget.
HB 154 would have created a new tax credit for Montana renters and homeowners with household incomes under $150,000. The credit would equal 75% of either property taxes paid (for homeowners) or 15% of rent paid (for renters), minus an income-based percentage (ranging from 1% to 9.5%). To qualify, residents needed to have lived in Montana for at least 9 months and occupied a home or rental for 6 months during the tax year. The bill died in committee in May 2025 without becoming law.
HB 451 revises how tax increment financing (TIF) is calculated for newly established targeted economic development districts and urban renewal areas. For districts created after the bill's effective date, it excludes several specific mill levies from the tax increment calculation. These exclusions include certain university system mills, a portion of elementary, high school, and state equalization mills, new voter-approved levies, and mills for general obligation bond debt service. This means that a larger share of the new property tax revenue generated in these areas would directly go to the affected taxing jurisdictions, rather than into the TIF fund.
HB 320 establishes Montana's Academic Prosperity Program for Scholars (MAPPS) to offer educational options for eligible students aged 5-19. The program provides state income tax credits to individuals and corporations who donate to educational assistance accounts for participating students, and also to parents for their qualified education expenses. A program manager oversees these funds and their distribution for educational assistance, with guidance from a new MAPPS council. Students participating in MAPPS are exempt from public school compulsory enrollment requirements.
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.
