Budget & Taxes (Property Tax)

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 The bill was withdrawn on March 29, 2025, after committee hearings.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 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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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

died · Montana · Legislature May 26, 2025

LC 1397: Creating a homestead exemption

LC 1397, titled "Creating a homestead exemption," was a proposed bill that never advanced beyond the drafting stage. It was assigned to a drafter in November 2024 but placed on hold, and ultimately died in process in May 2025. The bill's intended purpose was to establish a homestead exemption (a property tax relief for primary residences), but no specific provisions or affected groups were defined as it was never introduced or voted on. Since the bill died in the drafting phase, no concrete policy changes were enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill proposes property tax relief for primary residences via homestead exemption, directly aligning with tax reduction support indicators.90% confidence

Sub-Topics Property Tax Tax Incentives

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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 · 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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