Budget & Taxes

introduced · Montana · Legislature Mar 24, 2025

LC 3864: Revise capital gains taxation

This bill revises Montana's capital gains tax by eliminating a preferential lower rate (3.0%) for net long-term capital gains once taxable income exceeds $1 million for married couples filing jointly or surviving spouses, or $500,000 for all other filers. It redefines "net long-term capital gains" to exclude income above these thresholds, meaning all capital gains above the limits will be taxed at the higher rate of 4.1% instead of the lower rate for the portion below the threshold. The bill also requires annual inflation adjustments to tax brackets and takes effect for tax years beginning after December 31, 2025. It directly affects high-income Montana taxpayers with significant capital gains income who exceed these income thresholds.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates preferential 3.0% capital gains tax for high earners above $500k/$1M thresholds, closing a tax loophole to increase revenue from wealthy filers.90% confidence

Sub-Topics Business Taxes

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introduced · Montana · Legislature Mar 25, 2025

LC 3799: Establish a stabilization fund for medicaid

This bill (LC 3799) establishes a Medicaid Stabilization Reserve Account within Montana's state special revenue fund. It requires transferring unused state Medicaid funding at year-end to this reserve, which can only be used to maintain Medicaid matching funds during projected general fund budget shortfalls (as defined by 17-7-140). The account cannot fund other state programs, and any interest earned must be reinvested. This directly affects Montana's Medicaid program and state budget management by creating a dedicated buffer to prevent cuts to Medicaid services during revenue shortfalls, effective for fiscal year 2025 and beyond.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates Medicaid Stabilization Reserve to maintain funding during budget shortfalls, promoting fiscal responsibility in state budget management without altering tax structure.92% confidence ✓ HealthcareSupports HealthcareCreates Medicaid Stabilization Reserve to maintain funding during budget shortfalls, preventing defunding of healthcare program per bill language.95% confidence

Sub-Topics State Budget Medicaid

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introduced · Montana · Legislature Mar 26, 2025

LC 1975: Establish a behavioral health trust fund

This bill creates the Montana Behavioral Health Trust Fund to provide dedicated funding for mental health and substance use services. It establishes a seven-member board (appointed by the governor, legislative leaders, and tribal representatives) to manage the fund, which receives quarterly interest from a permanent endowment (preserving the principal). Funds will support specific services like school-based mental health programs, crisis care, counselors in homeless shelters, transitional housing, and facility expansions - directly benefiting community organizations and public health services. The bill mandates that funds cannot replace existing state funding and requires the board to develop a state plan and monitor program effectiveness.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates dedicated funding via trust fund for mental health services, aligns with appropriations subject and supports public service funding.95% confidence ✓ EducationSupports EducationFunds school-based mental health programs, directly supporting student well-being and access to educational services within K-12 schools.95% confidence ✓ HealthcareSupports HealthcareCreates dedicated funding via trust fund for mental health/substance use services, supporting access through school programs, crisis care, and shelter counselors.95% confidence ✓ HousingSupports HousingFunds counselors in homeless shelters and transitional housing, directly supporting housing stability for vulnerable populations through mental health services.85% confidence

Sub-Topics Mental Health Public Health Homelessness

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introduced · Montana · Legislature Mar 26, 2025

LC 4205: Provide for a hospital community benefit fee

This bill requires nonprofit hospitals in Montana to report their community benefit spending (like charity care and health programs) to the state health department. If a hospital's reported community benefits don't cover its potential property tax liability (the tax it would owe if not exempt), it must pay a fee equal to the difference. The fee funds a special account that provides annual funding to critical access hospitals based on bed count. This directly affects nonprofit hospitals that currently qualify for property tax exemptions but may not meet the new community benefit threshold.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates mandatory fee on hospitals to fund critical access hospitals via special account, directly allocating revenue to essential healthcare services.95% confidence ✓ HealthcareSupports HealthcareBill funds critical access hospitals via fees from nonprofit hospitals, increasing healthcare funding for rural providers and improving access to essential services.95% confidence

Sub-Topics Hospitals

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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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introduced · Montana · Legislature Mar 27, 2025

LC 1418: Provide for taxation of vapor products

This bill (LC 1418) amends Montana's definition of "tobacco products" to explicitly include vapor products, such as e-cigarettes and vape pens, that deliver nicotine through vaporization. It revises Section 16-11-102, MCA, to define "tobacco product" as any device or substance consumed via vaporization for nicotine delivery. This change brings vapor products under Montana's existing tobacco taxation framework, affecting manufacturers, retailers, and distributors of these products. The bill does not establish tax rates but enables future tax implementation for vapor products. It directly affects businesses selling vapor products by subjecting them to the same tax rules as traditional tobacco products.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly extends Montana's tobacco tax framework to vapor products, generating additional state revenue through taxation of new products under existing tax structure.95% confidence

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introduced · Montana · Legislature Mar 27, 2025

LC 3186: Transferring funds to local road and bridge account

This bill directs the state treasurer to transfer $30 million from the general fund to Montana's local road and bridge account by July 15, 2025. The funds are intended to support local road and bridge maintenance and improvement projects managed by counties and municipalities. The transfer is a one-time action, not an ongoing funding source, and applies specifically to the account designated under state law (15-70-132). The bill takes effect on July 1, 2025, with the transfer deadline set for July 15.

Topics ✓ Budget & TaxesSupports Budget & TaxesTransfers $30M from general fund to road maintenance account, directly allocating state budget resources for infrastructure. Aligns with appropriations focus under State Finance.95% confidence ✓ TransportationSupports TransportationBill allocates $30M from general fund to local road/bridge maintenance account, directly funding transportation infrastructure projects per state law 15-70-132.95% confidence

Sub-Topics State Budget Bridges Roads & Highways Transportation Funding

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introduced · Montana · Legislature Mar 28, 2025

LC 4457: Revise state finance laws related to the debt free account and the coal trust fund

This bill requires Montana's state treasurer to transfer all unspent funds from the state's "debt and liability free account" into the "coal severance tax permanent fund" within 10 days of the bill's effective date. The transfer applies only to unobligated and unexpended money in the debt-free account, as defined in existing law. If another bill (SB 90) fails to pass, the transfer would instead go to the "Montana school facilities fund" instead. The bill appropriates $100 from the general fund to cover implementation costs for the 2025-2027 biennium. It takes effect immediately upon approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesTransfers unspent funds to coal trust/school facilities funds, promoting fiscal responsibility and funding public infrastructure per state finance laws.95% confidence ✓ EducationSupports EducationBill directs unspent funds to Montana school facilities fund if SB 90 fails, explicitly advancing school infrastructure funding.85% confidence

Sub-Topics State Budget

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introduced · Montana · Legislature Mar 30, 2025

LC 1608: Generally revise conservation financing laws

Montana's LC 1608 establishes a Habitat Legacy Account funded by marijuana revenue to support wildlife conservation. It allocates 75% of annual funds to the Land and Wildlife Stewardship Account for habitat acquisition, 20% to the Wildlife Habitat Improvement Account for projects, and 5% to the Big Game Highway Crossings Account for wildlife crossing infrastructure. If the Stewardship Account exceeds $50 million in unused funds, allocations shift to 80% for improvement projects and 20% for crossings. The Department of Fish, Wildlife, and Parks administers all accounts, with funds restricted to specific conservation purposes like habitat protection, wildlife projects, and highway crossing design.

Topics ✓ Budget & TaxesSupports Budget & TaxesFunds wildlife conservation via dedicated marijuana tax revenue, creating new appropriations for environmental programs per bill's allocation structure.90% confidence ✓ EnvironmentSupports EnvironmentFunds wildlife conservation via dedicated accounts for habitat acquisition, improvement, and infrastructure, directly advancing environmental protection through specific allocations.95% confidence ✓ TransportationSupports TransportationAllocates 5% of funds to Big Game Highway Crossings Account for wildlife crossing infrastructure, directly funding transportation safety projects.85% confidence

Sub-Topics Conservation Wildlife Roads & Highways

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died · Montana · Legislature May 20, 2025

LC 2366: Increase property tax rates on forest lands

This bill increases property tax rates for forest lands classified as "class ten property" in Montana. It changes the tax rate from 0.27% in 2024 to 0.37% for all tax years after 2024, applying to landowners with forest properties meeting specific size and ownership criteria under Montana law. The rate change takes effect January 1, 2026, applying to property tax years beginning after December 31, 2025. This directly affects owners of qualifying forest lands, increasing their annual property tax burden based on forest productivity value.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax revenue for state budget by raising rates from 0.27% to 0.37% on qualifying forest lands.95% confidence

Sub-Topics Property Tax

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