Budget & Taxes

introduced · Montana · Legislature Dec 18, 2024

LC 2036: Provide for a child tax credit

This bill establishes a Montana child tax credit for resident taxpayers with qualifying children aged 5 or younger, providing a maximum refundable credit of $1,200 per child. The credit is reduced by $90 for every $1,000 of federal adjusted gross income exceeding $50,000, and it is not available if income surpasses a $56,000 threshold regardless of filing status. The legislation also adds this child tax credit to a list of tax credits that must be reviewed by the revenue interim committee every eight years to evaluate their effectiveness and impact. These policy changes apply to Montana income tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit relief for families with young children, reducing tax burden for middle/lower income households and supporting family financial stability.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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introduced · Montana · Legislature Jan 23, 2025

LC 3243: Provide tax credit to landlords that rent for below market rate

This bill creates a Montana income tax credit for landlords who rent residential properties at rates below the local fair market value. Landlords can claim $2 for every $100 their rent is under 110% of the county's fair market rent, with a maximum credit limited to their annual tax liability. To qualify, properties must have lease terms of at least one year, meet federal housing quality standards, and not already participate in other rent-limiting programs. The credit can be carried forward for up to three years if not fully used, and the bill requires landlords to submit proof of rent amounts and lease agreements when claiming the benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits to landlords for below-market rent, promoting affordable housing and fiscal incentives for community benefit.85% confidence ✓ HousingSupports HousingBill provides tax credits to landlords for below-market rent, directly increasing affordable housing availability and protecting tenant access to affordable units.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Affordable Housing Landlords Tenant Rights

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introduced · Montana · Legislature Jan 24, 2025

LC 137: Modify tax classification of shooting ranges

This bill reclassifies shooting ranges as Class Four commercial property for Montana state tax purposes, directly affecting shooting range operators and their property assessments. The legislation amends existing tax law to include shooting ranges operated by nonprofit organizations in the commercial property category, which is then taxed at half the standard commercial property tax rate. This change applies to tax years beginning after December 31, 2025, and modifies the Montana Code Annotated to formalize this classification within the state's property tax system.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces tax burden on shooting ranges by lowering their property tax rate, promoting fiscal relief for business operators and potentially increasing local revenue through economic activity.85% confidence

Sub-Topics Business Taxes

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introduced · Montana · Legislature Jan 25, 2025

LC 1974: Create a county road maintenance district

This bill creates a new type of county road maintenance district in Montana that allows local property owners to organize and fund road upkeep for roads previously maintained by the county. The district can be established when at least 66% of property owners in an area sign a petition requesting the district, after which the county must hold a public hearing and create the district if the petition meets requirements. Costs for road maintenance within the district are assessed against benefited properties based on the benefits received, and the county must reduce its general property tax levy by the amount the district collects to avoid double taxation. The bill also defines maintenance activities to include snow removal, graveling, sealing, and traffic system repairs, and allows the district to contract with public or private entities to perform maintenance work.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates new funding mechanism for road maintenance through local property assessments, strengthening local infrastructure financing and fiscal management.75% confidence ✓ TransportationSupports TransportationBill creates new funding mechanism for road maintenance, directly supporting transportation infrastructure by allowing property owners to organize and fund upkeep of roads previously maintained by county.90% confidence

Sub-Topics Roads & Highways

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introduced · Montana · Legislature Jan 13, 2025

LC 3553: Provide for increase in total MEDIA act film tax credits

This bill increases the annual limit on Montana film production tax credits from $12 million to $350 million, allowing more movie and TV projects to qualify for state tax incentives. The change directly affects film production companies and other businesses seeking tax credits under the Montana Economic Development Industry Advancement Act. The bill also maintains a first-come, first-served allocation system and requires state departments to publicly post available credit amounts online. If a project misses the annual limit, it can apply for credits in the following year without extending the standard carry-forward period for unused credits. The legislation takes effect immediately upon passage and applies to income tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases film production tax credits to attract businesses and investment, promoting economic development through state tax incentives.85% confidence

Sub-Topics Business Taxes Income Tax

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died · Montana · Legislature Jan 15, 2025

LC 1859: Transfer a portion of ending fund balance into the coal trust fund

This bill directs Montana state officials to transfer excess funds from the general fund into the Montana Coal Severance Tax Permanent Fund beginning in 2025. The law establishes specific thresholds for when these transfers occur, requiring that once certain reserve levels are met, additional surplus money must be distributed to various accounts including the coal trust fund. The mechanism calculates excess revenue by comparing current fiscal year income against a historical growth rate, then applies a distribution formula that sends 10% of any remaining surplus to the coal trust after other funds reach their designated limits. This change affects the state treasurer and department of administration, who will be responsible for calculating and executing the transfers according to the new statutory requirements. The bill takes effect on July 1, 2025, and modifies existing Montana Code Annotated provisions regarding budget stabilization and fund transfers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directs transfer of excess funds into coal trust fund, strengthening state fiscal management and funding reserves for future coal-related programs.90% confidence

Sub-Topics State Budget

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introduced · Montana · Legislature Jan 24, 2025

LC 964: Revise the definition of public school system and requirements of school funding formula

This bill updates Montana's school funding laws by revising the definition of a basic system of free quality public schools and establishing new requirements for how state funding is calculated and distributed. It directly affects Montana public school districts, the state legislature, and all students by mandating that funding formulas account for specific factors such as student needs, open enrollment transfers, and student achievement growth relative to funding increases. Key provisions require the legislature to consider elements like special needs students, American Indian cultural integration, teacher retention, and transparent reporting on how additional funding improves outcomes, while also ensuring the formula includes automatic annual inflation adjustments and equitable distribution across districts. The bill aims to create a more structured and accountable approach to school funding that reflects constitutional requirements for educational equality throughout the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill strengthens school funding formulas and ensures adequate state funding for public education, directly advancing the budget and taxation topic by protecting essential public services.85% confidence ✓ EducationSupports EducationBill updates school funding laws to account for student needs and achievement growth, strengthening financial support for public education.85% confidence

Sub-Topics School Choice School Funding Teachers

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introduced · Montana · Legislature Jan 30, 2025

LC 1103: Revise school funding laws to clarify the legislature's authority related to inflationary adjustments

This bill clarifies the Montana Legislature's authority to adjust school funding amounts for inflation in ways that differ from the standard calculation currently required by law. It directly affects the state's public school funding system by amending existing statutes to allow lawmakers to set inflationary adjustments above the standard 3% cap or use alternative calculation methods. The key provision permits the legislature to exercise its lawmaking power to provide funding increases beyond the automatic formula based on consumer price index data, while the superintendent of public instruction continues to calculate the standard inflation factor for baseline entitlements. This change ensures that the state retains flexibility in determining school funding adjustments without removing the existing automatic calculation method for baseline amounts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies authority to increase school funding beyond standard caps, strengthening public education financing and expanding budget flexibility for schools.85% confidence ✓ EducationSupports EducationBill clarifies legislative authority to increase school funding beyond standard caps, directly supporting public school finance and educational access.85% confidence

Sub-Topics School Funding

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introduced · Montana · Legislature Feb 13, 2025

LC 1507: Repeal sunset on coal washing credit

This bill removes the expiration date for a tax credit that coal companies in Montana can claim for coal washing operations. By repealing previous sections of state law, the measure ensures the credit remains available indefinitely rather than ending on a set date. The legislation also requires the secretary of state to send copies of the act to federally recognized tribal governments in Montana. It takes effect immediately upon passage and approval by the legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill extends a tax credit for coal companies, reducing their tax burden and providing economic relief to the mining industry.85% confidence ✗ EnergyOpposes EnergyBill extends tax credit for coal washing operations, supporting fossil fuel extraction and opposing renewable energy transition.90% confidence

Sub-Topics Coal

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introduced · Montana · Legislature Jan 8, 2025

LC 6: Revise class four residential and commercial property taxes

This bill revises Montana's property tax rates for Class Four residential and commercial properties, directly affecting homeowners, landlords, and business owners. It establishes a graduated tax rate for residential properties, exempting the first $50,000 of market value and applying higher rates to values above $1.5 million, while also creating an exemption for the first $200,000 of commercial and industrial property value. The legislation includes specific provisions for vacant residential lots, rental multifamily units, and mixed-use properties, with tax rates generally set at 1.35% for residential properties and 1.89% for commercial properties, subject to certain exemptions and multipliers. The bill takes effect immediately upon passage and applies retroactively to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill revises property tax rates with exemptions for lower values, promoting fiscal responsibility and providing tax relief for homeowners and businesses.85% confidence

Sub-Topics Business Taxes Property Tax

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