Budget & Taxes

HB 18 redirects all revenue from bentonite mining taxes (collected after December 31, 2014) to a dedicated "school equalization and property tax relief account" instead of previous distribution rules. Specifically, 20.75% of this tax revenue must now fund school districts and reduce local property taxes, as amended in sections 15-39-110 and 20-9-331 of Montana law. The bill directly affects mineral producers who pay the tax and school districts that receive funding through the new account. This change applies to all bentonite mining revenue collected after 2014, shifting funds from prior county and state allocations to the equalization account.

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.