SB 351 limits Montana local governments' ability to save ("bank") property tax authority for certain state-mandated tax programs. It specifically amends property tax law to prevent local entities from carrying forward unused mill authority (tax rate allowances) for taxes imposed under statutes 20-9-331, 20-9-333, 20-9-360, and 20-25-439. This change directly affects counties, cities, and school districts that rely on these specific state tax programs, requiring them to use their full annual tax authority each year rather than saving it for future use. The bill’s key provision removes these programs from the existing rule that allows governments to carry forward unused tax authority to future years.
SB 159 would create an "Educational Opportunity Fund" within Montana's coal severance tax trust. It increases the annual cap on educational tax credits from $2 million to $5 million starting in 2024, with automatic annual increases of 20% plus 50% of fund earnings. This bill directly affects taxpayers who donate to school districts for innovative programs or to scholarship organizations, allowing them to claim larger tax credits. It also removes the previous sunset provision, making the credit program permanent. The bill amends existing tax code sections to implement these changes to educational funding.
SB 323 would reduce Montana's top individual income tax rate from 5.9% to 4.9% for most taxpayers, including married couples filing jointly, heads of household, and single filers. It also increases the state's Earned Income Tax Credit, providing greater tax relief for low-to-moderate income workers. The bill amends Montana's tax code (sections 15-30-2103 and 15-30-2318) to adjust tax brackets and credit amounts, with changes applying to income above specific thresholds ($41,000 for joint filers, $30,750 for heads of household, and $20,500 for others). The bill was tabled in committee and died in process without becoming law.
SB 169 would revise Montana's property tax law by removing the tax exemption for certain intangible personal property, such as stocks, bonds, patents, software, and licenses, unless they are directly used in business operations. This change would affect businesses and property owners holding these assets, requiring them to pay property taxes on previously exempt items. The bill clarifies that intangible property lacking physical existence (like goodwill) or representing value (like financial instruments) is no longer exempt, while property integral to business operations remains exempt. The law would take effect for tax years beginning after December 31, 2025, with implementation starting January 1, 2026.
SB 287 creates the Montana Growth and Opportunity Trust to manage volatile state revenues, including transferring funds to new specialized accounts like Montana Water Development, Better Local Bridges, and Early Childhood. It modifies property tax assistance by requiring homeowners to certify primary residences (with penalties for false claims) and directing county credits to eligible homeowners. The bill establishes rules for distributing trust interest income to state accounts, limits volatile revenue transfers during budget deficits, and revises pension fund transfers. These changes directly affect state finance agencies, local governments, and homeowners applying for property tax credits. The bill also creates a Montana Housing Trust and updates reporting requirements for state funds.
SB 267 (Montana Senate Bill 267) creates a 50% tax credit for Montana taxpayers who make charitable donations to certified public infrastructure projects, capped at $500,000 annually. The credit applies to donations for government-owned facilities like health clinics, senior centers, libraries, and museums that serve public educational, health, or civic needs. Taxpayers must receive certification from the state for the project, and any unused credit can be carried forward for up to three years. The bill died in the legislative process on May 23, 2025, after being tabled in committee and missing a deadline.
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 4 changes how Montana taxes the land beneath a home on qualifying agricultural property. It requires the first acre of land under a residence on eligible farm property to be valued at market rate but exempts it from tax up to the statewide average value for similar homesites. This primarily affects homeowners living on agricultural land who qualify for special farm tax treatment under Montana law. The exemption reduces their property tax burden specifically on that 1-acre parcel, rather than the entire farm.
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 108 requires Montana local governments (counties, cities, school districts) to get voter approval before raising property taxes or issuing bonds to pay court judgments, settlements, or tax protest refunds that exceed existing tax limits. Specifically, if a government needs to collect more tax revenue than permitted under current law (2-9-108) to cover these costs, voters must approve the levy or bond issuance. The bill amends multiple statutes to enforce this voter approval step for such "excess" tax increases. It does not change how governments pay routine expenses but adds a new voting requirement for specific, larger financial obligations tied to legal disputes. This affects local budgets when resolving court cases or tax disputes that require funding beyond standard tax allowances.
