Budget & Taxes (Property Tax)

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 · 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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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 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 24, 2025

LC 1208: Require minimum voter turnout required for approving property tax levies

This bill (LC 1208) proposed requiring a minimum voter turnout threshold for local property tax levies to be approved by voters. It would have directly affected local governments and school districts needing voter approval for new or increased property taxes. The bill, which died in process in May 2025, never advanced beyond the drafting stage and did not establish any specific turnout percentage or implementation details. As a procedural proposal that never became law, it did not change any existing policy.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill requires minimum voter turnout for property tax levies, restricting local governments' ability to approve tax increases and limiting tax revenue collection.90% confidence

Sub-Topics Business Taxes Property Tax

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died · Montana · Legislature May 24, 2025

LC 1175: Require super majority to pass voted mill levies

This proposed bill would have required a super majority (e.g., 60% or higher) of voters to approve local mill levies - taxes funding schools, roads, or services - instead of a simple majority. It would directly affect local governments and voters in communities seeking to raise funds through voter-approved levies. The bill never advanced beyond drafting, as its draft died in process on May 24, 2025, meaning no vote or enactment occurred. No concrete policy changes were implemented.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRequires 60%+ voter approval for mill levies, restricting local tax increases and limiting funding options for schools/roads, directly restricting tax approval process.95% confidence ✗ EducationOpposes EducationRequires super majority for school levies, increasing barriers to funding approval and restricting local education budget access.85% confidence ✗ TransportationOpposes TransportationBill requires super majority for mill levies funding roads (transportation infrastructure), making it harder to secure funding for road projects. Thus restricts transportation funding access.80% confidence

Sub-Topics Business Taxes Property Tax School Funding

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