Budget & Taxes (Sales Tax)

signed · Montana · Senate May 16, 2025

SB 409: Generally revise laws related to the department of commerce

SB 409 revises laws related to the Department of Commerce and changes how revenues from the lodging facility use tax are distributed. The bill modifies the allocation of these tax proceeds among various state programs and entities, including the Montana historical society, state parks, and regional tourism corporations. A key provision expands and permanently establishes the program providing emergency lodging for victims of domestic violence or human trafficking, funded by a portion of these tax revenues. It also adjusts specific uses for funds allocated directly to the Department of Commerce, such as for the renovation of the Miles City train depot.

Topics ✓ Budget & TaxesSupports Budget & TaxesFunds emergency lodging program for victims via lodging tax revenue allocation, expanding permanent funding for essential services.95% confidence

Sub-Topics Sales Tax

died · Montana · House May 22, 2025

HB 848: Provide funding for regional rail authorities

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates dedicated tax-funded account (rental car sales tax) for rail authorities, directly allocating existing revenue to a new program under appropriations.95% confidence ✓ TransportationSupports TransportationBill creates dedicated funding for regional rail authorities via rental car tax revenue, directly advancing public transit infrastructure and transportation planning as specified in subjects and summary.95% confidence

Sub-Topics Sales Tax Rail Transportation Funding

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died · Montana · Senate May 23, 2025

SB 554: Generally revise laws related to hospitals operating as nonprofit care facilities

SB 554 (Montana) limits nonprofit hospitals (excluding critical access/rural emergency hospitals) to charging no more than 300% of the Medicare reimbursement rate for Medicare-eligible services. Hospitals exceeding this rate face an escalating excise tax (starting at 25% in 2027 and rising to 50% after 2030) and risk losing nonprofit status. The bill also requires hospitals to maintain written financial assistance and community benefit policies, submit annual reports including IRS Form 990, and comply with new reporting rules. This bill died in process in May 2025 and was never enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes escalating excise tax (25-50%) on hospitals exceeding Medicare rate, generating state revenue through new tax mechanism.95% confidence ✓ HealthcareSupports HealthcareCaps hospital charges for Medicare services at 300% of Medicare rate, reducing patient costs and enforcing community benefit requirements to improve access.95% confidence

Sub-Topics Sales Tax Hospitals Medicare

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died · Montana · House May 20, 2025

HB 842: Legislative referendum on sales tax to fund education

HB 842 proposed a legislative referendum for Montana voters to decide on establishing a statewide sales tax. If approved by voters, this bill would allow the legislature to enact a sales tax not exceeding 4%. The revenue generated from this sales tax would be exclusively used to reduce property taxes that fund public schools and the Montana university system. The proposed sales tax would apply to final goods and services but include exemptions for necessities such as housing, groceries, fuel, health care, and utilities. The bill was to be submitted to qualified electors at the November 2026 general election for approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes sales tax to fund education, reducing property taxes on schools/universities, providing tax relief for homeowners and supporting public education funding.95% confidence ✓ EducationSupports EducationBill creates sales tax revenue to fund public schools/university system by reducing property taxes, directly advancing school finance through new dedicated funding.95% confidence

Sub-Topics Business Taxes Sales Tax

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died · Montana · House May 20, 2025

HB 326: Establish a tax on electrical energy not produced by coal to match coal severance tax rate

HB 326, titled the "State Energy Resource Severance Act," would establish a new 10% tax on the sale price of electrical energy produced in the state. This tax would apply to electricity generated from sources such as water, wind, and solar, but specifically exempts coal-fired electrical generation. The bill also reduces the existing coal severance tax rate to match this new electrical energy production tax rate. Revenue from this new tax would be allocated to special accounts, primarily for local government infrastructure projects traditionally funded by coal.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new 10% tax on non-coal energy (wind/solar), reallocates revenue to local accounts for public services, strengthening tax base and fiscal management per bill's explicit tax structure.95% confidence ✗ EnergyOpposes EnergyBill taxes renewable energy (wind/solar/hydro) at 10% while exempting coal and reducing coal's severance tax, directly favoring fossil fuels over renewables.95% confidence ✗ EnvironmentOpposes EnvironmentTaxes renewable energy sources while exempting coal, disincentivizing clean energy adoption and favoring fossil fuels over environmental protection.95% confidence

Sub-Topics Business Taxes Sales Tax Coal Solar

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died · Montana · House May 20, 2025

HB 841: Constitutional amendment to use sales tax revenue for education

HB 841 proposed a constitutional amendment in Montana to change the allocation of state sales or use tax revenue. It would have required that revenue from a statewide sales tax, capped at 4%, be used primarily to reduce property taxes funding public schools and the Montana University System. The bill allowed for this revenue to be appropriated for other purposes if three-fourths of the legislature voted to do so. If approved by voters in November 2026, the amendment would have taken effect on July 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects sales tax revenue to fund public schools and university system, reducing property tax burden for education, aligning with funding essential programs.95% confidence ✓ EducationSupports EducationBill mandates sales tax revenue (capped at 4%) to fund public schools and university system, directly increasing education funding through constitutional amendment.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax

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died · Montana · House May 20, 2025

HB 461: Provide exemption for certain owner-occupied residential property owned by persons 67 or older

HB 461 proposes a property tax exemption for certain owner-occupied residential properties. It directly affects homeowners aged 65 or older who have continuously used the property as their primary residence for at least five years. The exemption amount is calculated based on the increase in market value compared to a "base year" when the exemption was first approved. Homeowners must apply annually by March 1, and the exemption can terminate if the property is sold, undergoes new construction or significant remodeling, or is reclassified.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors (67+), offering direct tax relief to lower-income homeowners and aligning with fiscal support indicators for vulnerable groups.95% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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died · Montana · House Feb 27, 2025

HB 507: Constitutional amendment for sales tax to fund K-12 education

HB 507 is a proposed constitutional amendment that would allow Montana to implement a 4% statewide sales tax (and use tax) specifically to reduce property taxes funding K-12 public schools. If approved by voters, this tax revenue would replace some local property tax funding for schools, directly affecting Montana taxpayers and public school districts. The bill requires a two-thirds legislative vote for passage and voter approval in the November 2026 election, with an effective date of July 1, 2027 if adopted. The bill was withdrawn by the House on February 27, 2025, per procedural rules, and did not advance further.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes 4% sales tax to fund K-12 education, increasing state revenue allocation for public schools while reducing property tax reliance on school funding.95% confidence ✓ EducationSupports EducationBill establishes 4% sales tax to fund K-12 schools, replacing property taxes, directly increasing school funding and reducing reliance on local property taxes.95% confidence

Sub-Topics Revenue Sales Tax

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died · Montana · House May 20, 2025

HB 25: Require exempt entities to report beneficial use of property

HB 25 proposed that entities typically exempt from property taxes, such as government bodies or charities, would need to report annually to the Department of Revenue. This report would be required if they lease their property to a non-exempt entity or for a non-exempt use, and would include a description of the leased property and a copy of the lease agreement. If the beneficial use of the property was not properly reported, it would become subject to property taxation. The bill aimed to ensure that properties used for non-exempt purposes are appropriately taxed, even if owned by an exempt organization.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole for exempt entities by requiring reporting of leased property, ensuring proper tax compliance and preventing tax avoidance on non-exempt uses.90% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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died · Montana · Senate May 23, 2025

SB 558: Provide a general statewide sales tax to replace school property taxes

SB 558 proposed replacing school property taxes with a statewide sales tax to fund public schools. It would create a new general sales tax, redirect all revenue to a dedicated school funding account, and repeal existing statewide property tax levies for schools. The bill would directly affect school districts and property taxpayers by shifting funding responsibility from local property taxes to a statewide sales tax, with certain exemptions (like agricultural sales) specified. However, the bill was tabled in committee and died in the legislative process in 2025, so it never became law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill replaces property taxes with statewide sales tax to fund schools, creating dedicated revenue stream for public education via new tax structure.95% confidence ✓ EducationSupports EducationBill redirects sales tax revenue to dedicated school funding account, ensuring stable funding without reducing education budgets per summary.90% confidence

Sub-Topics Business Taxes Property Tax Sales Tax School Funding

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