SB 434 provides a property tax rebate of up to $400 for Montana homeowners who lived in their principal residence for at least 7 months during tax year 2024. It directly affects individual homeowners (not businesses or multiple properties) who paid Montana property taxes on their primary residence, with the rebate amount capped at $400 or the actual taxes paid, whichever is lower. To claim the rebate, homeowners must submit an application electronically (August 15-October 1, 2025) or by mail (postmarked by October 1), including proof of residency and property ownership. The rebate is not subject to Montana income tax, and false claims may result in penalties of 300% of the rebate plus 12% annual interest.
SB 324 revises vehicle registration fees for high-end vehicles, adding a 1% fee based on the vehicle's manufacturer's suggested retail price (MSRP) for the first year of registration after January 1, 2026, for cars over $150,000 and motorhomes over $300,000. It directly affects owners of these high-value vehicles, replacing a flat annual add-on fee with the percentage-based assessment. Revenue from these fees will fund two specific programs: grants for bridge projects through the Department of Transportation and services for crime victims via the Board of Crime Control. The bill also updates related sections of Montana law governing registration fees and special revenue accounts.
SB 546 would have created an income-based tax credit for Montana taxpayers with low-to-moderate income, reducing their state tax liability. The credit would have been calculated as 4.7% of taxable income up to specific thresholds ($2,000 for joint filers, $1,500 for heads of household, and $1,000 for other filers), phasing out by 0.094% for each additional $1,000-$2,000 of income depending on filing status. It would not have applied to income above phaseout limits, and the credit could not exceed the taxpayer’s total tax liability. The bill died in committee on May 23, 2025, and was never enacted.
SB 405 proposed transferring $50 million from Montana's general fund to the Housing Montana Fund within 15 days of enactment, directly supporting state housing programs and affordable housing initiatives. It required the Department of Commerce to update administrative rules related to housing by the start of the 70th legislative session. The bill would have taken effect July 1, 2025, but died in committee on May 23, 2025, after being tabled in April 2025. This was a substantive funding bill, not a procedural measure, with no further legislative action taken.
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.
House Bill 361 sought to establish state funding for school districts serving English language learners and provide professional stipends for their teachers. It proposed state matching funds for public school districts that receive federal subgrants for programs supporting students with limited English proficiency. The bill also aimed to provide annual stipends of up to $500 for qualified teachers holding specific certifications in English as a Second Language or culturally and linguistically diverse education. Teachers meeting these qualifications and working in high-poverty or impacted schools could receive an enhanced stipend of up to $1,000, with both the state and school districts contributing to these payments.
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.
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 220 would establish a refundable child tax credit for Montana resident taxpayers with children under age 5. It provides a $1,200 credit per qualifying child, phasing out for taxpayers with federal adjusted gross income over $56,000 (with a $50,000 phaseout threshold). The credit is refundable, meaning eligible families could receive it as a payment even if they owed no state income tax. The bill also adds the child tax credit to Montana’s required periodic review schedule for tax credits. The bill died in committee on May 22, 2025, and did not become law.
HB 334 sought to revise laws concerning disaster and emergency funding. The bill proposed to increase the statutory appropriation available to the Governor's office for declared emergencies from $16 million to $22 million per two-year period, effective July 1, 2025. It also would have allowed the Department of Military Affairs to use up to $3 million annually from this fund for disaster and emergency services activities, such as planning, training, and response, without a formal governor's declaration. Unspent funds at the end of each biennium would continue to be transferred to the fire suppression account.
