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 848 aimed to provide dedicated funding for regional rail authorities in the state. The bill proposed creating a "Big Sky Rail Account" within the state special revenue fund, which would receive a portion of rental car sales and use tax proceeds. The Department of Transportation would then annually distribute these funds to eligible regional rail authorities. These authorities could use the money for administrative costs, matching federal grants, fostering partnerships, and planning, developing, and operating rail projects and services, such as enhancing safety, improving stations, and exploring new train routes.
HB 313 aimed to establish a grant program to provide funding for public swimming pools operated by local governments and nonprofit organizations. It would have created a "public swimming pool infrastructure account" and appropriated $5 million from the state general fund, to be administered by the Department of Commerce. These grants were intended to support capital construction, maintenance, repair projects, and equipment purchases for eligible aquatic facilities. Grants of $25,000 or more would have required a 1:5 match, and funding was limited to $1 million per county and $500,000 per project.
HB 851 proposes to create a new state agency called the Department of Health Services. This new department would take over specific human services functions currently managed by the Department of Public Health and Human Services. These transferred responsibilities include the administration of developmental disabilities services, mental health services (like the Montana State Hospital), chemical dependency services, and veterans' long-term care facilities. The bill also provides an appropriation for the new department, grants it rulemaking authority, and requires its contracts to include dispute resolution clauses.
HB 119 sought to establish the Montana Cattle Committee, a new entity composed of seven Montana cattle producers appointed by the governor. The committee would be responsible for planning and conducting research, promotion, and educational programs to benefit the state's cattle industry. To fund these activities, the bill proposed a cattle assessment to be collected from cattle sellers, which would first require approval through a referendum of those sellers. Funds from this assessment would be deposited into a dedicated cattle special revenue account for the committee's use.
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.
