Budget & Taxes (Business Taxes)

signed · Montana · Senate May 16, 2025

SB 550: Revise taxation of of certain telecommunications property

SB 550 revises property tax laws by expanding the definition of "Class five property" to include certain telecommunications property. This change directly affects telecommunications companies that provide services exclusively to rural areas, smaller cities and towns with populations of 1,200 or less, or those operating in three or fewer counties. Their property will now be classified under Class five, which is taxed at 3% of its market value. The bill takes immediate effect and applies retroactively.

Topics ✓ Budget & TaxesSupports Budget & TaxesClassifies telecom property under 3% tax rate, reducing burden for rural telecom companies, providing tax relief.90% confidence

Sub-Topics Business Taxes Property Tax

died · Montana · House May 20, 2025

HB 874: Provide property tax rebate for entity that did not receive past rebates

HB 874 aimed to provide property tax rebates for certain residential properties owned by entities, such as trusts, that did not receive past rebates. The bill allowed these entities to claim up to $500 for property taxes paid in 2022 and up to $500 for property taxes paid in 2023. To qualify, the property must have been a principal residence, and claims needed to be submitted by October 1, 2025. The bill also extended the program's termination date to June 30, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax rebates up to $500 annually for qualifying residential properties, reducing tax burden for eligible owners under Taxation--Property.95% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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died · Montana · House May 20, 2025

HB 916: Revise lodging tax allocation related to property tax relief

HB 916 aimed to provide property tax assistance specifically for primary residences. The bill proposed to fund this relief by revising the allocation of revenue generated from the state's lodging tax. This mechanism would have redirected a portion of the lodging tax proceeds, which are currently distributed to various state programs supporting tourism, historical preservation, and state parks, towards property tax relief for homeowners.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects lodging tax revenue to fund property tax relief for homeowners, directly providing tax assistance to middle-income residents.90% confidence ✓ HousingSupports HousingBill provides property tax relief for primary residence homeowners, directly increasing housing affordability for this group through redirected lodging tax revenue.95% confidence

Sub-Topics Business Taxes Property Tax Property Taxes

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died · Montana · Senate May 23, 2025

SB 173: Provide income tax relief for property taxes paid

SB 173 proposes two main tax relief measures: a new "workforce renter's tax credit" for Montana renters under 62 with household income under $45,000 who pay rent equivalent to property taxes (with rent at least 30% of earned income), offering credits up to $1,750 based on rent-to-income ratio; and an increased residential property tax credit for elderly homeowners, including inflation adjustments to prevent the credit from losing value over time. The bill specifically allows qualifying teachers to exclude certain non-teaching income when calculating the renter credit. It directly affects low-to-moderate-income renters and elderly homeowners, providing them direct tax relief through refundable credits. The bill was introduced but died in committee in May 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits for lower-income renters ($45k income cap) and elderly homeowners, reducing tax burden per support indicators for middle/lower income relief.90% confidence ✓ HousingSupports HousingProvides direct tax relief to low-income renters (under $45k) via renter's credit, increasing housing affordability for vulnerable populations.90% confidence

Sub-Topics Business Taxes Income Tax Affordable Housing Property Taxes Renters

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died · Montana · House May 20, 2025

HB 942: Establish a child income tax credit

HB 942 proposes to establish a new child income tax credit for resident taxpayers. This bill would provide a refundable credit of $1,000 for each qualifying child aged 5 or younger. To claim the credit, taxpayers must have proof of earned income and a valid social security number for each child. The credit amount would be reduced for taxpayers with federal adjusted gross income exceeding $35,000 for single filers or $65,000 for married couples filing jointly. Both the credit amount and the income thresholds would be adjusted annually for inflation, applying to income tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable $1,000 credit per child under 5 for qualifying lower-income families, reducing tax burden for households with earned income below $35k/$65k thresholds.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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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 · House May 20, 2025

HB 213: Revise residential and commercial property tax rate

HB 213 proposed to revise the property tax rates for Class Four residential and commercial properties. These properties include most residential homes, rental units, and commercial buildings. The bill would lower the tax rate for most residential properties from 1.35% to 0.76% of their market value. It also adjusted the tax rate calculation for single-family homes valued over $1.5 million and for commercial properties, changing their multiplier from 1.4 to 1.35 times the standard residential rate. If passed, these changes would have applied retroactively to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesLowers property tax rates for most residential properties, providing tax relief to middle-income homeowners per bill's explicit rate reduction from 1.35% to 0.76%.95% confidence ✓ HousingSupports HousingLowers property tax rate for residential properties (1.35% to 0.76%), reducing costs for homeowners and rental units, advancing housing affordability.85% confidence

Sub-Topics Business Taxes Property Tax Property Taxes

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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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died · Montana · House May 20, 2025

HB 922: Generally revise education tax credit laws

HB 922 proposes to establish a new education tax credit for resident taxpayers who are parents or legal guardians of children attending nonpublic schools. This bill would allow a $250 credit per eligible student each year, applied against the taxpayer's income tax liability. Any unused credit could be carried forward for up to three years. The legislation also revises the review schedule for existing tax credits and aims to provide parity in aggregate limits for educational programs in public and nonpublic school settings.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit reducing income tax liability for education expenses, providing tax relief per bill's tax credit provisions.85% confidence ✓ EducationSupports EducationCreates $250 tax credit per nonpublic school student, expanding educational access and financial support for families using private schools.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives School Choice

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died · Montana · House May 20, 2025

HB 489: Revise sales tax laws to provide for local option tax

HB 489, titled the "Local Option Property Tax Relief Act," would have allowed consolidated city-counties or counties to implement a local sales tax. This tax, requiring voter approval and capped at 4%, would apply to specific goods and services, excluding items like medical supplies and SNAP-eligible food products. The revenue generated from this local option tax would be specifically used to provide property tax relief for primary residences and long-term rental properties. A portion of the revenue would also be distributed to local governments that do not levy the tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates local sales tax (max 4%) to fund property tax relief for primary residences/rentals, directly reducing tax burden on homeowners per summary.95% confidence ✓ HousingSupports HousingProvides property tax relief for primary residences and long-term rentals, reducing housing costs and supporting affordability through targeted tax relief.85% confidence

Sub-Topics Business Taxes Sales Tax Property Taxes

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