Budget & Taxes

died · Montana · Senate May 23, 2025

SB 32: Generally revise property taxes

SB 32 revises Montana's property tax structure by adjusting tax rates for multiple property classes. It lowers the tax rate for mining property (Class 2) from 3% to 1.65% of gross proceeds, sets agricultural land (Class 3) at 1.65% of productive value, and modifies residential/commercial rates (Class 4), including a reduced 1% rate for owner-occupied homes and a 1.4x multiplier for properties over $1.5 million. The bill also adds an inflation adjustment for local government tax levies and clarifies definitions for properties like nonproductive mining claims and owner-occupied residences. These changes directly affect property owners across Montana, particularly in agriculture, mining, and residential real estate.

Topics ✓ Budget & TaxesSupports Budget & TaxesLowers rates for mining (3%→1.65%), agriculture (1.65%), and owner-occupied homes (1%), providing tax relief.90% confidence

Sub-Topics Business Taxes Property Tax

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died · Montana · House Feb 27, 2025

HB 507: Constitutional amendment for sales tax to fund K-12 education

HB 507 is a proposed constitutional amendment that would allow Montana to implement a 4% statewide sales tax (and use tax) specifically to reduce property taxes funding K-12 public schools. If approved by voters, this tax revenue would replace some local property tax funding for schools, directly affecting Montana taxpayers and public school districts. The bill requires a two-thirds legislative vote for passage and voter approval in the November 2026 election, with an effective date of July 1, 2027 if adopted. The bill was withdrawn by the House on February 27, 2025, per procedural rules, and did not advance further.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes 4% sales tax to fund K-12 education, increasing state revenue allocation for public schools while reducing property tax reliance on school funding.95% confidence ✓ EducationSupports EducationBill establishes 4% sales tax to fund K-12 schools, replacing property taxes, directly increasing school funding and reducing reliance on local property taxes.95% confidence

Sub-Topics Revenue Sales Tax

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signed · Montana · House Apr 7, 2025

HB 18: Deposit non-levy revenue in school equalization and property tax relief account

HB 18 redirects all revenue from bentonite mining taxes (collected after December 31, 2014) to a dedicated "school equalization and property tax relief account" instead of previous distribution rules. Specifically, 20.75% of this tax revenue must now fund school districts and reduce local property taxes, as amended in sections 15-39-110 and 20-9-331 of Montana law. The bill directly affects mineral producers who pay the tax and school districts that receive funding through the new account. This change applies to all bentonite mining revenue collected after 2014, shifting funds from prior county and state allocations to the equalization account.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects mining tax revenue to fund schools and reduce property taxes, directly providing tax relief and increasing school funding per bill's title and summary.95% confidence ✓ EducationSupports EducationRedirects 20.75% of bentonite mining tax revenue to school districts for funding and property tax relief, directly increasing school district resources per Montana law amendments.95% confidence

Sub-Topics Revenue

died · Montana · House May 22, 2025

HB 451: Revise tax increment financing districts to exclude debt service and certain school levies

HB 451 revises how tax increment financing (TIF) is calculated for newly established targeted economic development districts and urban renewal areas. For districts created after the bill's effective date, it excludes several specific mill levies from the tax increment calculation. These exclusions include certain university system mills, a portion of elementary, high school, and state equalization mills, new voter-approved levies, and mills for general obligation bond debt service. This means that a larger share of the new property tax revenue generated in these areas would directly go to the affected taxing jurisdictions, rather than into the TIF fund.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExcludes school levies and debt service from TIF calculations, reducing available revenue for economic development districts.95% confidence ✗ EducationOpposes EducationExcludes school levies from TIF calculations, reducing potential school funding streams by removing these revenues from tax increment calculations.95% confidence

Sub-Topics Business Taxes Debt & Bonds Tax Incentives

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died · Montana · Senate May 23, 2025

SB 323: Revise individual income tax rates and earned income credit

SB 323 would reduce Montana's top individual income tax rate from 5.9% to 4.9% for most taxpayers, including married couples filing jointly, heads of household, and single filers. It also increases the state's Earned Income Tax Credit, providing greater tax relief for low-to-moderate income workers. The bill amends Montana's tax code (sections 15-30-2103 and 15-30-2318) to adjust tax brackets and credit amounts, with changes applying to income above specific thresholds ($41,000 for joint filers, $30,750 for heads of household, and $20,500 for others). The bill was tabled in committee and died in process without becoming law.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces top tax rate and increases EITC for low-to-moderate income workers, providing targeted tax relief per bill summary.95% confidence

Sub-Topics Business Taxes Income Tax

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signed · Montana · House Apr 7, 2025

HB 16: Revise infrastructure loan program and tax credit

HB 16 revises Montana's infrastructure loan program and tax credit rules. It removes eligibility for businesses to qualify for loans based on increasing wages or incomes of existing employees or employers. The bill also prohibits claiming infrastructure use fees as both a tax credit and a tax deduction, preventing double benefits. These changes apply to infrastructure loans made on or after the effective date and tax credits claimed after December 31, 2025, affecting businesses receiving loans and local governments building infrastructure.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents double tax benefits for infrastructure fees, closing a loophole to promote fiscal responsibility in tax administration.95% confidence

Sub-Topics Business Taxes

signed · Montana · House Jun 20, 2025

HB 2: General Appropriations Act

HB 2, the General Appropriations Act of 2025, allocates $30.8 million in state funding for Montana's agencies during the 2025-2027 biennium. It directly affects all state agencies receiving funds, including the Legislative Services Division, Governor's Office, and Consumer Counsel, by specifying how money can be spent (e.g., "Biennial" funds for two years, "Restricted" funds for specific purposes). Key mechanisms include categorizing appropriations to control spending, requiring separate budget tracking for different fund types, and mandating clear reporting of personal services funding. The bill does not create new policies but establishes the financial framework for state operations during the biennium.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates $30.8M in state funding for agencies, directly supporting budget appropriations and fiscal management per its summary.95% confidence

Sub-Topics Appropriations State Budget

died · Montana · House May 20, 2025

HB 472: Revise laws related to state settlement money

HB 472 revises how the state manages money received from legal settlements. It generally requires that funds obtained from claims or litigation on behalf of the state or its citizens, after covering attorney fees and costs, be deposited into the state's general fund. The bill includes exceptions for specific funds like victim restitution, natural resource damages for restoration, and existing tobacco settlement money. It also grants the Governor authority to approve alternative uses for settlement funds, requiring a report to the legislative finance committee if this authority is utilized.

Topics ✓ Budget & TaxesSupports Budget & TaxesDirects settlement funds to general fund, increasing state budget revenue without tax changes, aligning with fiscal responsibility and fund allocation indicators.92% confidence

Sub-Topics State Budget

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died · Montana · House May 20, 2025

HB 652: Eliminate state taxes on veterans retirement

HB 652 aimed to revise state income taxation by providing a full income tax exemption for military pensions, retirement, and survivor benefits. This bill would have directly affected veterans, military retirees, and their survivors by eliminating state income taxes on these specific forms of income. The proposed changes included amending sections of the Montana Code Annotated related to income definitions and tax provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state income tax on veterans' retirement income, providing direct tax relief to military retirees and survivors per bill's explicit tax exemption provision.95% confidence ✓ VeteransSupports VeteransEliminates state income tax on veterans' retirement benefits, directly expanding financial benefits for veterans and survivors.95% confidence

Sub-Topics Income Tax Tax Incentives Veteran Benefits

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died · Montana · Senate May 23, 2025

SB 4: Revise taxation of homesite on certain agricultural property

SB 4 changes how Montana taxes the land beneath a home on qualifying agricultural property. It requires the first acre of land under a residence on eligible farm property to be valued at market rate but exempts it from tax up to the statewide average value for similar homesites. This primarily affects homeowners living on agricultural land who qualify for special farm tax treatment under Montana law. The exemption reduces their property tax burden specifically on that 1-acre parcel, rather than the entire farm.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first acre of farm home property from tax up to statewide average, reducing tax burden for qualifying homeowners.85% confidence

Sub-Topics Property Tax

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