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 827 aimed to revise the taxation of Social Security benefits at the state level in Montana. The bill proposed to modify how the federal calculation for taxing Social Security benefits is applied when determining an individual's state income tax. This change would have directly affected Montana residents receiving Social Security benefits by potentially altering the portion of those benefits subject to state income tax. The bill included provisions for a delayed effective and applicability date.
HB 228 revises how the Office of Budget and Program Planning reports on the actual costs of certain legislation to the Legislative Finance Committee. It lowers the threshold for tracking from $1 million to $500,000 in projected general fund expenditures. The bill requires reports to be submitted biannually, in February and October, detailing actual spending for the preceding six months and comparing it to the original projected costs. This legislation also repeals a termination date, making this cost reporting requirement permanent.
House Bill 864 implements provisions related to education funding and administration across various institutions. It expands the use of the School Facility and Technology Account, allowing excess funds to be transferred to the School Major Maintenance Aid Account to prevent aid reductions for schools. For community colleges, the bill revises definitions and mechanisms for calculating state general fund appropriations, incorporating inflationary adjustments and changes in full-time equivalent (FTE) student numbers. It also increases payments for resident nonbeneficiary students at tribal colleges and mandates a study on interlibrary resource sharing programs and the Office of Public Instruction.
HB 920 establishes a temporary property tax exemption for new senior care facilities and housing development projects. Tax-exempt non-profit organizations sponsoring these projects must first petition a local government, which determines if there is a "compelling need" for the project through a public hearing. If approved by the local government, the sponsor can then apply to the department of revenue for the exemption. This bill aims to encourage the development of various affordable housing and care options for seniors aged 55 or 62 and older.
