This bill modifies Montana's property tax and school funding laws to lower property taxes while maintaining the current 95 school equalization mills. It establishes fixed amounts for state and county school equalization mills and vocational-technical education mills, and exempts school levies from certain tax rate limitations. The legislation also increases guaranteed tax base multipliers for 2026, adjusts reimbursement rates for school transportation, and requires the Department of Revenue and Office of Public Instruction to report on how property reappraisals affect school funding. Additionally, it updates reappraisal schedules for certain property classes and mandates that taxpayers receive information about property tax trends in annual notices.
This bill prevents certain state-mandated property tax levies from being carried forward to future years if local governments do not use their full authorized tax authority in the current year. It directly affects Montana counties, school districts, and other governmental entities that impose property taxes, specifically limiting how they can bank unused tax mill authority for later use. The key provision amends existing property tax law to exclude specific state-mandated levies - such as those for school districts, regional resource authorities, and certain special assessments - from the ability to carry forward unused tax authority. Local governments will still be able to carry forward unused tax authority for their own discretionary levies, but they cannot do so for taxes required by state law for specific purposes.
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.
This bill exempts agricultural property from open space property tax levies in Montana, directly affecting landowners who classify their property for agricultural use. The key provision amends state law to remove agricultural land from the list of properties subject to these levies, which fund various county services like parks, roads, and fire control. If a county had already collected payments from exempt agricultural property, the bill allows counties to reduce those payments to refund the overcharged amount. The law takes effect immediately upon passage and applies retroactively to tax years beginning on or after January 1, 2025.
This bill modifies Montana laws governing voter-approved property tax levies by establishing time limits on their duration and requiring periodic voter reapproval. It directly affects local governments, school districts, and taxing entities that have previously approved property tax increases through elections. The key provision limits most new or extended mill levies to a maximum of 10 years without requiring voters to reapprove them before the expiration date. Additionally, the bill clarifies how tax increment calculations work for targeted economic development districts and urban renewal areas, specifying which mill rates should be excluded from those calculations based on when the districts were created.
This bill requires voter approval before Montana counties, cities, or school districts can use new property tax levies or issue bonds to pay court judgments, settlements, or property taxes paid under protest. The law amends multiple state statutes to ensure that any special tax increases or debt issued for these financial obligations must be submitted to registered voters for approval. Local governments can still pay these costs from existing funds or insurance, but cannot raise new taxes without a public vote. The changes apply to all political subdivisions and take effect on the bill's applicability date.
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.
This bill updates Montana's property tax rates for agricultural, residential, and commercial properties, directly affecting landowners and property owners across the state. It amends existing state statutes to change the tax percentage for agricultural land from 1.7% to 2.16% of productive capacity value and adjusts residential and commercial tax rates from 0.76% to 1.35% of market value, while also modifying how certain mixed-use properties are classified and taxed. The legislation includes specific provisions for nonqualified agricultural land, mining claims, and residential properties over $1.5 million in value, with tax rates applied differently based on property use and size. The changes take effect immediately upon passage and apply retroactively to tax years beginning after December 31, 2024, and the reappraisal cycle starting January 1, 2025.
This Montana bill creates a one-time property tax rebate of up to $400 for homeowners who paid property taxes on their principal residence in 2024. The rebate is limited to the actual amount of taxes paid and applies to single-family homes, apartments, and manufactured homes where the taxpayer lived for at least seven months during the year. Eligible homeowners must submit claims between August 15 and October 1, 2025, by mail or online, and the rebate is not subject to Montana income tax. The bill also establishes penalties for false claims and allows appeals if a rebate application is denied.
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.
