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

introduced · Montana · Legislature Mar 27, 2025

LC 3704: Generally revise allocation of lodging facility use taxes

This bill revises how Montana's lodging facility use tax revenue is distributed to local governments. It creates two new accounts: one for county roads and infrastructure (funded by lodging taxes) and another for municipal roads and infrastructure. County funds are distributed based on each county's share of the previous year's tax collection, with a minimum of 0.5% and maximum of 8% per county. Municipal funds are distributed based on population (with small towns counted as having 200 residents), capped at 8% per city or town. The bill directly affects all Montana counties and cities/towns that collect lodging taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesReallocates existing lodging tax revenue to fund county/municipal road infrastructure, directly supporting public infrastructure funding through tax distribution.95% confidence ✓ TransportationSupports TransportationBill allocates lodging tax revenue to county/municipal road infrastructure via new accounts, directly funding transportation projects as indicated by Highway Revenue Diversion and Highways and Roads subjects.95% confidence

Sub-Topics Revenue Sales Tax

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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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introduced · Montana · Legislature Mar 30, 2025

LC 3297: Provide a general statewide sales tax to replace school property taxes

This bill proposes replacing school property taxes with a statewide sales tax. It would create a general sales tax across Montana, with all revenue directed to the School Equalization and Property Tax Reduction Account to fund public schools. The bill repeals existing property tax mill levies for schools and allows certain sales tax exemptions while requiring out-of-state retailers to collect the tax. Homeowners would no longer pay school property taxes, and schools would receive funding through this new sales tax system instead of local property levies.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill replaces property taxes with statewide sales tax to fund schools via dedicated account, directly advancing school finance through tax structure reform and revenue redirection.95% confidence ✓ EducationSupports EducationBill redirects all sales tax revenue to fund public schools via School Equalization Account, replacing property taxes without reducing school funding, directly supporting education finance.95% confidence

Sub-Topics Business Taxes Sales Tax State Budget School Funding

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introduced · Montana · Legislature Mar 30, 2025

LC 4257: Revise selective sales taxes to provide ongoing property tax relief

This bill creates a $400 property tax credit for Montana homeowners who lived in their primary residence for at least 7 months in 2024, capped at the actual 2024 property taxes paid. The credit will be applied directly to the 2025 property tax bill as a reduction, funded by increased lodging and rental car taxes. Homeowners must apply electronically (July 15-August 15, 2025) or by mail with proof of ownership and residency, and the credit is limited to single-family homes, condos, or mobile homes within 1 acre of land. Counties will distribute the credit through property tax bills, with penalties for false applications.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct property tax relief to homeowners via $400 credit, funded by increased lodging/tax, advancing tax relief for middle-income residents.95% confidence

Sub-Topics Sales Tax

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died · Montana · Legislature May 22, 2025

LC 4241: Voter referendum on a state wide general sales tax

LC 4241 proposed a voter referendum to decide on implementing a statewide general sales tax. If approved by voters, it would have directly affected all state residents and businesses by requiring a new statewide sales tax. The bill's key mechanism was to place the tax question on the ballot for public vote, rather than setting the tax rate itself. The bill was drafted in January 2025 but died in committee in May 2025 without advancing further. This was a procedural bill seeking voter approval for a policy change, not an enacted tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill proposes referendum for statewide sales tax, aiming to implement new tax revenue source that would increase state budget funding, directly advancing taxation policy.90% confidence

Sub-Topics Business Taxes Sales Tax

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died · Montana · Legislature May 27, 2025

LC 3072: Eliminate state tax on social security income

LC 3072 would have eliminated the state tax on Social Security income for residents. This change would have directly affected individuals receiving Social Security benefits, including retirees and disabled persons, by removing a tax burden on that income. The bill's key mechanism was amending the state tax code to exclude Social Security payments from taxable income. The bill died in committee in May 2025 and did not become law.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates tax on Social Security income, providing tax relief for retirees and disabled persons, aligning with tax relief indicators for middle/lower income.90% confidence

Sub-Topics Business Taxes Sales Tax

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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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