Budget & Taxes

died · Montana · Senate May 23, 2025

SB 2: Revise treatment of tax increment upon expiration of tax increment financing provision

SB 2 clarifies how local governments calculate property tax levies when a tax increment financing (TIF) district ends. It specifies that the value previously held in the TIF district (the "increment") must be treated as "newly taxable property" for tax calculations in the year of termination or the following year. This directly affects Montana local governments, as it ensures they can include this value when determining property tax revenues under existing levy formulas, without treating it as new construction or annexation. The bill amends Montana Code Annotated sections 15-10-420 and 20-9-336 to define these rules clearly.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies tax calculation for TIF expiration, ensuring local governments include increment value in property tax levies, promoting fiscal accuracy and revenue stability for local budgets.95% confidence

Sub-Topics Property Tax

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died · Montana · House Mar 29, 2025

HB 865: Revise government entity limitations on property tax increases

HB 865 allows Montana cities and counties to create a "large taxpayer reserve account" by depositing 10% of revenue from newly taxable property (excluding class four) into the fund. This money can only be used if a major taxpayer (top 20% by value) leaves or experiences a 25%+ drop in property value, to pay for capital projects, reduce mill levies for affected areas, attract new businesses, or fund infrastructure. The bill also adjusts how local governments calculate property tax levies by changing the percentage of new property value that counts toward tax limits. The bill was withdrawn on March 29, 2025, after committee hearings.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates reserve fund to stabilize property tax revenue, allowing tax reductions when major taxpayers leave, promoting fiscal responsibility and preventing levy increases.90% confidence

Sub-Topics Business Taxes Property Tax

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died · Montana · Senate May 23, 2025

SB 108: Require levies or bonds for judgments, settlements, or protested taxes to be submitted to voters

SB 108 requires Montana local governments (counties, cities, school districts) to get voter approval before raising property taxes or issuing bonds to pay court judgments, settlements, or tax protest refunds that exceed existing tax limits. Specifically, if a government needs to collect more tax revenue than permitted under current law (2-9-108) to cover these costs, voters must approve the levy or bond issuance. The bill amends multiple statutes to enforce this voter approval step for such "excess" tax increases. It does not change how governments pay routine expenses but adds a new voting requirement for specific, larger financial obligations tied to legal disputes. This affects local budgets when resolving court cases or tax disputes that require funding beyond standard tax allowances.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRequires voter approval for tax increases beyond limits, restricting local government fiscal flexibility on levies/bonds for judgments/settlements.95% confidence

Sub-Topics Debt & Bonds Revenue

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died · Montana · Senate May 23, 2025

SB 307: Reallocate Montana marijuana tax revenue

SB 307 redirects Montana's marijuana tax revenue to fund prevention programs, law enforcement, and local grants. It creates a new marijuana prevention account to support primary substance misuse prevention and youth suicide prevention programs through community-based services. The bill establishes a marijuana tax revenue accountability council to advise on fund allocation and requires annual impact reports on public health metrics like youth access and hospitalizations. These funds, previously distributed differently, will now specifically target prevention services and law enforcement operations under new reporting rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects existing marijuana tax revenue to fund prevention programs and accountability measures, advancing fiscal use of tax funds for public health priorities.90% confidence

Sub-Topics Revenue

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died · Montana · Senate May 23, 2025

SB 90: Redistribute certain state tax revenue to primary residence property tax relief

SB 90 would provide property tax relief to Montana homeowners with primary residences by using lodging and rental car tax revenue. Homeowners would need to apply for certification by March 1, proving they live in the home at least 7 months yearly and that the property value is under $1 million. Counties would apply the credit directly to property tax bills using annual funding based on certified residences, with penalties for false applications. The bill specifies that assistance won’t affect local mill rates and requires Department of Revenue certification of eligible primary residences.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects lodging/rental tax revenue to property tax relief for homeowners, reducing tax burden on primary residences under $1M.95% confidence

Sub-Topics Business Taxes Property Tax Revenue

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died · Montana · Senate May 23, 2025

SB 189: Lower residential, commercial, and agricultural property tax rates

SB 189 lowers property tax rates for specific categories in Montana. It reduces the tax rate for Class Three agricultural land from 2.16% to 1.85% of its agricultural value, and cuts the standard residential tax rate from 1.35% to 0.76% of market value (with a reduced rate for homes over $1.5 million). Commercial property tax rates also decrease, from a previous 1.4x multiplier to 1.35% of market value. The bill applies retroactively to 2025 tax years, meaning affected property owners may receive refunds for past taxes paid under the higher rates. It directly impacts Montana landowners with agricultural properties, residential homes (especially higher-value ones), and commercial properties.

Topics ✓ Budget & TaxesSupports Budget & TaxesLowers property tax rates for residential, agricultural, and commercial properties, providing tax relief and aligning with fiscal responsibility in taxation policy.95% confidence

Sub-Topics Business Taxes Property Tax

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died · Montana · Senate May 23, 2025

SB 549: Provide income tax credit for K-12 education expenses

SB 549 would have provided Montana taxpayers with a $1,250 annual income tax credit for eligible K-12 education expenses paid for children in public schools. It directly affected parents, guardians, and teachers of public school students by covering costs like tuition, textbooks, online learning programs, educational therapies, and school supplies. The credit would apply to expenses paid to public schools or specific accredited/non-accredited providers (with disclosure), but could not exceed a taxpayer’s total tax liability. The bill aimed to offset rising education costs for families in Montana’s public education system. (Note: This bill died in committee in May 2025 and did not become law.)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax relief via $1,250 annual credit for K-12 education expenses, reducing taxable income for middle-income families and aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationProvides $1,250 annual tax credit for K-12 expenses, reducing family costs and increasing access to education through direct financial support.95% confidence

Sub-Topics Income Tax

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died · Montana · Senate May 23, 2025

SB 343: Revert revenue from coal tax to coal trust

SB 343 would change how Montana allocates remaining coal severance tax revenue after other specified uses. Currently, until 2027, interest income from the coal trust fund is sent to the general fund for specific programs like agriculture development, small business centers, and library services. This bill amends the law to redirect all remaining coal tax revenue (after other allocations) directly to the coal severance tax permanent fund starting July 1, 2027, instead of the general fund. The policy change would shift funding away from current general fund programs toward the coal trust fund, which supports coal-dependent communities and projects.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRedirects coal tax revenue from general fund programs (agriculture, small business, libraries) to coal trust fund, reducing funding for these services.90% confidence ✓ EnergySupports EnergyRedirects coal tax revenue to coal trust fund, supporting fossil fuel energy production infrastructure and revenue allocation.90% confidence

Sub-Topics Business Taxes Revenue Coal

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signed · Montana · House May 16, 2025

HB 483: Revise laws to reduce property taxes while preserving the current 95 school equalization mills

HB 483 aims to reduce property taxes by revising school funding laws, while preserving the existing 95 school equalization mills. The bill fixes state and county school equalization mills and vocational-technical education mills, and exempts school levies from general property tax increase limits. It also increases guaranteed tax base multipliers for fiscal year 2026 and raises state reimbursement rates for school transportation, which helps lower local property tax burdens. Additionally, the bill requires reports from the Office of Public Instruction and Department of Revenue on the impacts of property reappraisal on school funding and property taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly reduces property taxes through revised school funding laws, exempts school levies from tax limits, and raises state reimbursement rates to lower local property tax burdens while preserving school funding.95% confidence ✓ EducationSupports EducationPreserves 95 school equalization mills and raises state reimbursement rates for school transportation, reducing local property tax burden while maintaining school funding stability.95% confidence ✓ TransportationSupports TransportationBill explicitly increases state reimbursement rates for school transportation, directly funding this transportation infrastructure component.90% confidence

Sub-Topics Business Taxes Property Tax State Budget School Funding School Transportation

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