HB 924 creates the Montana Growth and Opportunity Trust, funded by half of the state's unpredictable revenue (like capital gains or oil royalties) starting in 2027. Interest income from the trust is split: half distributes $15 million annually to five specific programs (disaster resiliency, property tax relief, water development, bridge repairs, and early childhood care), while the other half reinvests in pension funds and housing infrastructure. The bill establishes new accounts for these programs and sets rules for calculating volatile revenue using historical data to stabilize budgeting. It directly affects state budgeting, early childhood services, infrastructure projects, and pension systems through mandatory funding allocations.
SB 424 would have expanded Montana's disabled veteran property tax assistance program to include veterans rated 60% to 90% disabled (previously only 100% or 80%+). It updated tax rate reductions based on income, adding new multipliers for 80-90% disabled veterans (e.g., 70% reduction for $0-$45,803 income) while maintaining existing rates for 100% disabled veterans. The bill directly affected disabled veterans with 60-90% service-connected disabilities (or surviving spouses) who own and occupy their primary residence as a qualifying property. The proposed changes were not enacted, as the bill was vetoed by the governor on June 9, 2025, and the veto override failed on July 14.
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.
HB 489, titled the "Local Option Property Tax Relief Act," would have allowed consolidated city-counties or counties to implement a local sales tax. This tax, requiring voter approval and capped at 4%, would apply to specific goods and services, excluding items like medical supplies and SNAP-eligible food products. The revenue generated from this local option tax would be specifically used to provide property tax relief for primary residences and long-term rental properties. A portion of the revenue would also be distributed to local governments that do not levy the tax.
HB 839 proposes a new $500 income tax credit for certain long-time residents of the state. To qualify, a taxpayer must have resided in the state for the prior 10 years, defined as at least 7 months per year, and have an income less than $100,000. This credit is non-refundable and cannot be carried forward to other tax years. If enacted, it would apply to income tax years beginning after December 31, 2025.
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.
HB 836 proposed creating a property tax deferral loan program for eligible senior citizens and active-duty military personnel in Montana. This program would allow qualifying homeowners to defer paying the portion of their property taxes that exceeds their 2022 property tax amount. The state's Board of Housing would provide these loans, which would accrue simple interest and become a lien on the primary residence. The loan, including interest, would generally be repaid when the property is sold or transferred, or upon the death of the homeowner, though a surviving spouse might be able to assume the loan.
HB 713 revises municipal zoning laws, outlining procedures for cities and towns to establish, amend, or repeal zoning regulations, restrictions, and boundaries. It requires public hearings with notice for most zoning changes, but allows for immediate adoption of zone map boundary changes by resolution. The bill also permits municipalities to conduct joint hearings for annexation and zoning under specific conditions, streamlining the process for newly annexed properties. Additionally, it repeals a previous method that allowed for citizen protest of zoning alterations.
SB 458 expands the types of projects eligible for financing through Commercial Property-Assessed Capital Enhancements (CPACE) programs. It allows commercial, industrial, multifamily housing, and agricultural property owners to finance "public safety and resiliency improvement projects." These projects include enhancements for seismic structural integrity, indoor air quality, resistance to wind, fire, and flooding, power outage resilience, and stormwater control measures. Local governments can establish these programs, enabling property owners to secure third-party financing repaid through a property assessment.
HB 231 revises property tax laws by establishing reduced tax rates for certain class four residential and commercial properties. It provides a lower tax rate for qualifying owner-occupied principal residences and long-term rental properties, as well as for a portion of commercial property value. For principal residences, some owners will automatically qualify for the reduced rate for tax years 2025 and 2026 based on prior tax rebates or assistance programs. Beginning in tax year 2027, all owners seeking these reduced rates must apply to the department and meet specific eligibility criteria, such as demonstrating occupancy for a principal residence or rental periods for long-term rentals.
