HB 831 increases Montana's elderly homeowner and renter income tax credit to help low-to-moderate-income seniors. It raises the maximum credit from $1,150 to $1,400 and increases the household income threshold for eligibility from $35,000 to $50,000 before the credit phases out. The bill also requires annual inflation adjustments to maintain the credit's value and applies retroactively to tax years beginning after December 31, 2024. This directly benefits Montanans aged 65+ who own or rent homes and meet the updated income limits.
SB 424 would have expanded Montana's disabled veteran property tax assistance program to include veterans rated 60% to 90% disabled (previously only 100% or 80%+). It updated tax rate reductions based on income, adding new multipliers for 80-90% disabled veterans (e.g., 70% reduction for $0-$45,803 income) while maintaining existing rates for 100% disabled veterans. The bill directly affected disabled veterans with 60-90% service-connected disabilities (or surviving spouses) who own and occupy their primary residence as a qualifying property. The proposed changes were not enacted, as the bill was vetoed by the governor on June 9, 2025, and the veto override failed on July 14.
HB 511 creates a $5 million grant program to fund firefighting training facility projects for local fire departments in Montana. The bill provides grants for building, upgrading, or repairing training facilities and purchasing equipment, with limits of $250,000 per project and $500,000 per county. Applicants must provide a 1% cash or service match for grants over $25,000 and follow safety standards, while the Department of Military Affairs administers the program. Funding is authorized for the 2025-2029 biennium and expires June 30, 2031.
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.
HB 339 would change Montana's school funding formula to provide 6th graders in accredited middle schools with the same per-pupil funding rate as 7th and 8th graders - currently, 6th graders receive lower elementary school funding. The bill amends Montana Code Sections 20-9-306 and 20-9-311 to eliminate this disparity, directly affecting school districts operating middle schools with 6th graders. It aims to align funding with accreditation standards, enabling middle schools to offer expanded programs like career and technical education. The policy change would adjust state education funding calculations for these districts without altering school structures.
SB 547 revises Montana's disabled parking permit rules to add eligibility for pregnant women. It allows pregnant individuals certified by a physician, certified midwife, or nurse to receive a temporary disability parking permit valid for up to one year. The bill also establishes a $10 fee for this permit, with the collected funds deposited into the state general fund. These changes specifically affect pregnant residents needing short-term parking accommodations due to medical conditions, while maintaining existing eligibility criteria for other disabilities.
SB 205 would have revised Montana's voter approval requirements for local property tax levies and bond elections. It would have increased the minimum voter turnout threshold for county bond elections from 30% to 40% (requiring 50%+ of votes cast to approve), and raised the threshold for city/town bond elections from 40% to 50% turnout (also requiring 50%+ of votes cast). These changes directly affected counties and municipalities seeking voter approval for bond measures or mill levies. The bill died in process in May 2025 and did not become law.
SB 32 revises Montana's property tax structure by adjusting tax rates for multiple property classes. It lowers the tax rate for mining property (Class 2) from 3% to 1.65% of gross proceeds, sets agricultural land (Class 3) at 1.65% of productive value, and modifies residential/commercial rates (Class 4), including a reduced 1% rate for owner-occupied homes and a 1.4x multiplier for properties over $1.5 million. The bill also adds an inflation adjustment for local government tax levies and clarifies definitions for properties like nonproductive mining claims and owner-occupied residences. These changes directly affect property owners across Montana, particularly in agriculture, mining, and residential real estate.
SB 203 would increase Montana's income tax thresholds, meaning more income would be taxed at the lower 4.7% rate instead of the higher 5.9% rate. Specifically, it raises the income level before the higher rate applies to $200,000 for joint filers, $150,000 for heads of household, and $100,000 for single filers. This change affects all Montana individual income taxpayers, potentially reducing their tax burden for income falling within the new, higher thresholds. The bill also includes retroactive application to tax years beginning after December 31, 2024.
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.
