Budget & 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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died · Montana · Senate May 23, 2025

SB 558: Provide a general statewide sales tax to replace school property taxes

SB 558 proposed replacing school property taxes with a statewide sales tax to fund public schools. It would create a new general sales tax, redirect all revenue to a dedicated school funding account, and repeal existing statewide property tax levies for schools. The bill would directly affect school districts and property taxpayers by shifting funding responsibility from local property taxes to a statewide sales tax, with certain exemptions (like agricultural sales) specified. However, the bill was tabled in committee and died in the legislative process in 2025, so it never became law.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill replaces property taxes with statewide sales tax to fund schools, creating dedicated revenue stream for public education via new tax structure.95% confidence ✓ EducationSupports EducationBill redirects sales tax revenue to dedicated school funding account, ensuring stable funding without reducing education budgets per summary.90% confidence

Sub-Topics Business Taxes Property Tax Sales Tax School Funding

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died · Montana · House May 22, 2025

HB 155: Revise class four residential and commercial property taxes

HB 155 revises property tax laws for Class Four residential and commercial properties. For residential properties, it introduces a graduated tax rate for single-family homes above $1.5 million in market value and sets specific rates for vacant residential lots under $50,000 and certain rental multifamily units over $2 million. For commercial and industrial properties, the bill exempts the first $200,000 of market value from taxation and establishes specific tax rates for the remaining value, with a different rate for golf courses. The bill would have taken effect immediately and applied retroactively to property tax years beginning after December 31, 2024.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts first $200k commercial property value, creating tax break for businesses (wealthy entities), aligning with oppose indicators85% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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died · Montana · House May 20, 2025

HB 928: Revise tax rate for agricultural property owned by certain nonprofits

House Bill 928 sought to revise the property tax calculation for agricultural land owned by specific nonprofit corporations. It proposed creating a new subcategory of Class three property for agricultural land acquired by nonprofits after the bill's effective date, excluding entities like churches, schools, and hospitals. For this particular land, its taxable value would have been determined by multiplying its productive capacity value by 10 times the standard agricultural land taxable percentage rate. This mechanism aimed to increase the taxable value of agricultural property held by certain nonprofits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax relief for nonprofits by lowering agricultural property tax rate through revised calculation method.95% confidence

Sub-Topics Business Taxes Property Tax

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died · Montana · House May 20, 2025

HB 412: Provide exemption for certain modifications to residential property

HB 412 proposed a new property tax exemption for homeowners who modify their existing residential properties to add living space. This exemption would apply to the increase in market value due to the modification, up to a limit of 15% of the property's market value before the modification. However, it would not apply to modifications made within three years of new construction, and only one exemption could be granted every six years, terminating upon the sale of the property. The Department of Revenue would automatically grant this exemption, which was set to begin in tax years after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for home modifications, reducing taxable value increase for homeowners, aligning with tax relief support.90% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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died · Montana · Senate May 23, 2025

SB 351: Limit the state's ability to bank statewide mills

SB 351 limits Montana local governments' ability to save ("bank") property tax authority for certain state-mandated tax programs. It specifically amends property tax law to prevent local entities from carrying forward unused mill authority (tax rate allowances) for taxes imposed under statutes 20-9-331, 20-9-333, 20-9-360, and 20-25-439. This change directly affects counties, cities, and school districts that rely on these specific state tax programs, requiring them to use their full annual tax authority each year rather than saving it for future use. The bill’s key provision removes these programs from the existing rule that allows governments to carry forward unused tax authority to future years.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts local governments' ability to bank unused property tax authority, limiting fiscal flexibility under state tax programs per bill's amendment to property tax law.92% confidence ✗ EducationOpposes EducationRestricts school districts' ability to bank property tax authority, limiting their financial flexibility for education funding under state-mandated tax programs.92% confidence

Sub-Topics Business Taxes Property Tax

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