SB 177 authorizes the Community Choice School Commission to seek and receive public funding. The bill also clarifies the commission's existing ability to accept and spend gifts and donations from private individuals and entities. These changes directly impact the financial operations of the Community Choice School Commission, which is responsible for approving authorizers for choice schools across the state. This allows the commission to broaden its sources of financial support.
SB 253 revises the administrative and certification processes for student scholarship organizations (SSOs) in Montana. The bill requires SSOs to apply for certification from the Department of Revenue and outlines specific requirements they must meet to be certified and accept tax-credit eligible donations. It mandates that SSOs allocate at least 90% of their annual revenue from eligible donations for scholarships and ensures a parent's right to select an education provider. The legislation aims to increase transparency and accountability for these organizations.
SB 534 provides a property tax exemption for specific wireless infrastructure in Montana. This bill exempts qualifying wireless infrastructure, placed into service on or after the act's effective date, from property taxes for an initial period of five years. Following this, the exemption gradually phases out over the next five years, after which the property becomes fully taxable. To maintain the exemption, owners must reinvest the tax savings into new communication infrastructure within Montana, without charging those costs to consumers.
House Bill 140 establishes a property tax assistance program for certain first responders and their surviving spouses. It provides a reduction in residential property taxes for law enforcement officers and firefighters who were injured in the line of duty. Unmarried surviving spouses of first responders killed in the line of duty are also eligible for this assistance. The amount of the tax reduction is determined by the applicant's income, with lower incomes receiving a greater benefit. Eligibility requires the property to be the primary residence and the first responder to meet specific criteria related to their line-of-duty injury or death.
SB 560 requires nonprofit hospitals to report their annual charity care and community benefit spending to the state. The bill mandates that a nonprofit hospital's total community benefit must exceed the amount of property taxes it would have paid if it were not tax-exempt. If a hospital's reported community benefit does not meet this threshold, a fee equal to the difference will be assessed. These collected fees are then deposited into a new Critical Access Health Care Special Revenue Account, which provides funding to critical access hospitals not affiliated with other hospitals.
HB 231 revises property tax laws by establishing reduced tax rates for certain class four residential and commercial properties. It provides a lower tax rate for qualifying owner-occupied principal residences and long-term rental properties, as well as for a portion of commercial property value. For principal residences, some owners will automatically qualify for the reduced rate for tax years 2025 and 2026 based on prior tax rebates or assistance programs. Beginning in tax year 2027, all owners seeking these reduced rates must apply to the department and meet specific eligibility criteria, such as demonstrating occupancy for a principal residence or rental periods for long-term rentals.
This bill creates an income tax credit for Montana taxpayers who donate cash to qualifying community improvement organizations. Taxpayers can claim a credit equal to 10% of their Montana taxable income or $3,000 (whichever is lower), with a total annual limit of $2 million in 2026 and $5 million in 2027 onward. The credit can be carried forward up to three years if not fully used in the donation year. To qualify, organizations must be 501(c)(3) nonprofits focused on public facilities (not including those with paid staff), and donations cannot overlap with existing charitable deduction benefits.
This bill (LC 1002) allows Montana taxpayers who claim the federal qualified business income deduction (Section 199A of the Internal Revenue Code) to also deduct that same amount from their Montana state taxable income. It directly affects Montana residents and businesses operating as pass-through entities (like S-corps, partnerships, and sole proprietorships) that qualify for the federal deduction. The key provision amends Montana’s tax code to add a specific subtraction for the federal 199A deduction amount, aligning state tax calculations with federal treatment. This reduces Montana taxable income by the amount claimed under the federal deduction, with immediate effective and retroactive application.
This bill revises how Montana allocates marijuana tax revenue, directing funds to specific state accounts after covering department operating costs. It requires 10% of excess funds to support addiction treatment programs (HEART account), 20% for wildlife habitat projects, 4% each to state parks/trails, and 31% for law enforcement grants to local police departments. Additional allocations include $300,000 for drug detection canines (ending 2025), 1.5% for sexual assault evidence kits, and 0.25% to homeless shelter support. These changes amend existing tax distribution rules under Montana law, affecting state agencies including wildlife, public health, and law enforcement. The bill does not change marijuana taxation rates but specifies new spending priorities for existing revenue.
This bill creates a Montana income tax credit for parents, guardians, or teachers paying K-12 education expenses. It allows a credit of up to $1,250 per year, covering costs like tuition, textbooks, online learning programs, tutoring, therapies, and school supplies. The credit can be claimed even without taxable income, with any excess refunded. It applies to expenses paid for children in public schools, accredited private schools, non-accredited tutors (with written disclosure), or compliant homeschools. The bill aims to help offset rising K-12 education costs for families and educators.
