Budget & Taxes (Business Taxes)

introduced · Montana · Legislature Mar 17, 2025

LC 3590: Constitutional amendment to use sales tax revenue for education

This bill proposes amending the Montana Constitution to require that sales tax and use tax revenue be used to reduce property taxes for public schools and the Montana University System. The amendment would only allow the legislature to redirect these funds to other purposes if it receives a three-fourths vote from each house. If approved by voters, the change would take effect on July 1, 2027, and would limit the statewide sales tax rate to 4%. The measure requires a two-thirds legislative vote to pass and would be placed on the November 2026 ballot for public approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates sales tax revenue for education funding and limits property taxes, directly supporting education budget and tax relief for schools.95% confidence ✓ EducationSupports EducationBill mandates using sales tax revenue to fund public schools and universities, explicitly strengthening education financing.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax

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introduced · Montana · Legislature Feb 6, 2025

LC 1380: Provide exemption for certain modifications to residential property

This bill creates a property tax exemption for homeowners who modify their existing residential structures to add living space. It directly affects owners of class four residential property who make changes like expanding a building or altering its form. The exemption allows owners to exclude the lesser of the increase in market value caused by the modification or 15% of the property's prior year market value from their property tax calculation. The exemption is automatically granted by the department of revenue, but it cannot be claimed for properties built within the last three years, is limited to once every six years per property, and ends when the property is sold. The changes apply to tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax exemption for homeowners modifying residential structures, reducing tax burden and supporting homeownership.85% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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introduced · Montana · Legislature Mar 18, 2025

LC 1714: Revise the taxation of class eight business equipment

This bill revises Montana's property tax rules for business equipment classified as Class Eight, which includes agricultural, mining, manufacturing, and oil and gas machinery and equipment. It increases the exemption threshold so that business equipment costing less than $250 is no longer taxed, and it establishes an annual inflation adjustment mechanism to update the exemption amount each year. To compensate local governments, tax increment financing districts, and the Montana University System for lost tax revenue from these changes, the state will provide reimbursements calculated based on historical tax collections. The bill amends existing state statutes to implement these tax adjustments and reimbursement procedures effective from its passage date.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for small business equipment by increasing exemption threshold and establishing inflation adjustments, promoting fiscal responsibility for businesses.85% confidence

Sub-Topics Business Taxes Revenue

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introduced · Montana · Legislature Jan 15, 2025

LC 173: Revise property tax rates for certain property

This bill revises Montana's property tax laws to create lower tax rates for owner-occupied residential properties and long-term rentals, while also adjusting rates for certain commercial properties. It establishes specific eligibility requirements, such as requiring owners to live in a principal residence for at least seven months annually and rent out properties for at least 28 days per month over nine months of the year. The legislation includes an automatic qualification process for 2025 and 2026 for properties that previously received tax rebates, with a transition to a formal application system starting in 2027. Property owners must meet current tax payment requirements and can appeal decisions through a designated process outlined in the bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill lowers property tax rates for owner-occupied homes and long-term rentals, providing tax relief to homeowners and renters while adjusting commercial rates.85% confidence ✓ HousingSupports HousingBill lowers property taxes for owner-occupied homes and long-term rentals, making housing more affordable and protecting residential property owners.75% confidence

Sub-Topics Business Taxes Property Tax Homeownership Property Taxes Renters

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introduced · Montana · Legislature Jan 23, 2025

LC 17: Maintain the county distribution level of metal mines license tax

This bill extends the deadline for distributing metal mines license tax revenue to Montana counties from 2019 to 2037. It directly affects county governments by ensuring they continue to receive a portion of these tax collections for a longer period. The legislation amends three existing state laws to update the termination dates, changing them from 2019 to 2027 and then to 2037. This change allows counties to maintain their current level of funding from metal mines licensing fees for an additional 18 years. The bill does not alter the tax rate or collection process, only the timeline for distributing the collected funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill extends county funding from metal mines license tax, strengthening local government revenue and supporting county budgets.90% confidence

Sub-Topics Business Taxes Revenue

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introduced · Montana · Legislature Jan 10, 2025

LC 2039: Lower residential, commercial, and agricultural property tax rates

This bill lowers property tax rates for agricultural land, residential properties, and commercial buildings in Montana to reduce the financial impact of recent property value reassessments. It directly affects farmers, homeowners, and business owners by reducing the percentage of their property's value that must be paid in taxes. The key changes include lowering the tax rate for agricultural land to 1.85% of its productive capacity value and reducing residential and commercial tax rates to 0.76% and 1.07% of market value, respectively. The legislation also clarifies how mixed-use properties are classified and taxed, ensuring that improvements on agricultural land are assessed separately from the land itself. These tax rate adjustments apply retroactively to tax years beginning after December 31, 2024, and the reappraisal cycle starting January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directly lowers property tax rates for residential, commercial, and agricultural properties, providing tax relief and reducing financial burden on taxpayers.95% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Mar 17, 2025

LC 3589: Legislative referendum on sales tax to fund education

This bill proposes a legislative referendum to let Montana voters decide whether to create a new sales tax of up to 4% to reduce property taxes for public schools and the Montana university system. The proposed tax would exempt essential items like groceries, housing, utilities, fuel, healthcare, and financial services to minimize the burden on consumers. If approved by voters in the November 2026 general election, the sales tax would be implemented to fund education while lowering property tax amounts for school districts and universities. The bill requires the full text and title of the measure to appear on the ballot for voters to consider.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill proposes new sales tax to fund education and reduce property taxes, directly advancing budget and taxation goals for public services.95% confidence ✓ EducationSupports EducationBill proposes new sales tax specifically to fund public schools and university system, directly increasing education funding95% confidence

Sub-Topics Business Taxes Sales Tax

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introduced · Montana · Legislature Feb 6, 2025

LC 3338: Providing tax incentives to put Montana-produced food first

This bill proposes tax incentives for businesses and individuals who sell food produced in Montana by creating a state income tax subtraction for income derived from such sales. The legislation would amend existing state tax code sections to allow taxpayers to reduce their Montana taxable income when they earn revenue from locally produced food items. It directly affects Montana-based food producers, retailers, and consumers who purchase local products, aiming to support the state's agricultural economy through preferential tax treatment. The bill includes a delayed effective date and specifies when the provisions will apply to taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax incentives for local food producers through income tax subtraction, supporting state agriculture and economic development while reducing tax burden on qualifying businesses.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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introduced · Montana · Legislature Dec 31, 2024

LC 4: Revise government entity limitations on property tax increases

This bill amends Montana's property tax laws to revise how government entities can increase property tax levies. It directly affects state and local taxing units such as school districts, counties, and municipalities that impose property taxes. The key provision allows entities to increase taxes by the prior year's assessed amount plus half of the average inflation rate over the previous three years, capped at 4% total growth. The bill also clarifies how newly taxable property is treated in calculations and establishes specific rules for tax increment financing districts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes property tax increase limits to promote fiscal responsibility and prevent excessive tax growth, protecting taxpayers from uncontrolled levies while allowing necessary inflation adjustments.85% confidence ✓ EducationSupports EducationBill allows school districts to increase property tax levies, which directly impacts school funding capacity and financial stability for K-12 education.75% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Jan 15, 2025

LC 4314: Revise resort tax eligibility and allow use for workforce housing

This bill updates Montana's resort tax laws to allow an additional 1% tax rate on goods and services in designated resort areas, with the revenue specifically designated for infrastructure projects or workforce housing. It directly affects resort communities and areas that rely on tourism, requiring voter approval before any resort tax can be imposed or changed. The legislation also clarifies definitions for key terms like "workforce housing," which must have at least 20% of units available to renters earning between 60% and 120% of the area median income, and expands the population threshold for certain resort areas from 2,500 to 3,500 people.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases funding for workforce housing and infrastructure through designated resort tax revenue, advancing budget priorities for essential community needs.85% confidence ✓ HousingSupports HousingBill designates resort tax revenue specifically for workforce housing infrastructure, directly funding affordable housing initiatives and expanding housing availability.85% confidence

Sub-Topics Business Taxes Affordable Housing

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