Sen. Dave Fern

Maddy summarySB 152 proposes a constitutional amendment to allow Montana's coal severance tax trust fund to invest up to 25% of its assets in private corporate stock, currently prohibited under the state constitution. This change would directly affect how the state manages the coal trust fund, which holds revenue from coal extraction taxes. The amendment modifies Article VIII, Section 13 of Montana's Constitution to permit this investment, aligning it with existing rules for retirement and insurance funds. The bill requires voter approval at the November 2026 general election to take effect.

Maddy summarySB 173 proposes two main tax relief measures: a new "workforce renter's tax credit" for Montana renters under 62 with household income under $45,000 who pay rent equivalent to property taxes (with rent at least 30% of earned income), offering credits up to $1,750 based on rent-to-income ratio; and an increased residential property tax credit for elderly homeowners, including inflation adjustments to prevent the credit from losing value over time. The bill specifically allows qualifying teachers to exclude certain non-teaching income when calculating the renter credit. It directly affects low-to-moderate-income renters and elderly homeowners, providing them direct tax relief through refundable credits. The bill was introduced but died in committee in May 2025.

Maddy summarySB 171 requires that 10% of excess state general fund revenue, after meeting budget stability and capital projects fund thresholds, be transferred to the Montana coal severance tax permanent fund (coal trust fund). This bill amends Montana's budget law to direct a portion of surplus funds - specifically, funds exceeding established reserve levels - to the coal trust fund instead of remaining in the general fund. The transfer applies when the budget stabilization reserve fund and capital projects fund exceed 16% and 12% of general revenue appropriations, respectively. The coal trust fund, which supports coal-related programs, would receive this additional funding without altering the state's primary budget processes.

Maddy summarySB 304 revises Montana's Lakeshore Protection Act to strengthen oversight of development near lakes. It directly affects landowners, developers, and contractors working within 20 feet of a lake's mean high-water elevation. Key provisions include requiring stop-work orders for unauthorized construction, mandating financial guarantees (surety bonds) for permits, updating penalties for violations (up to $10,000 fines or 180-day work pauses for repeat offenses), and allowing local governments to place liens on property to cover cleanup costs and fines. The bill also clarifies definitions, such as requiring lakes to be at least 160 acres and navigable by small boats, to determine which water bodies are protected.

Maddy summarySB 267 (Montana Senate Bill 267) creates a 50% tax credit for Montana taxpayers who make charitable donations to certified public infrastructure projects, capped at $500,000 annually. The credit applies to donations for government-owned facilities like health clinics, senior centers, libraries, and museums that serve public educational, health, or civic needs. Taxpayers must receive certification from the state for the project, and any unused credit can be carried forward for up to three years. The bill died in the legislative process on May 23, 2025, after being tabled in committee and missing a deadline.

Maddy summarySB 343 would change how Montana allocates remaining coal severance tax revenue after other specified uses. Currently, until 2027, interest income from the coal trust fund is sent to the general fund for specific programs like agriculture development, small business centers, and library services. This bill amends the law to redirect all remaining coal tax revenue (after other allocations) directly to the coal severance tax permanent fund starting July 1, 2027, instead of the general fund. The policy change would shift funding away from current general fund programs toward the coal trust fund, which supports coal-dependent communities and projects.

Maddy summarySB 546 would have created an income-based tax credit for Montana taxpayers with low-to-moderate income, reducing their state tax liability. The credit would have been calculated as 4.7% of taxable income up to specific thresholds ($2,000 for joint filers, $1,500 for heads of household, and $1,000 for other filers), phasing out by 0.094% for each additional $1,000-$2,000 of income depending on filing status. It would not have applied to income above phaseout limits, and the credit could not exceed the taxpayer’s total tax liability. The bill died in committee on May 23, 2025, and was never enacted.

Maddy summarySB 405 proposed transferring $50 million from Montana's general fund to the Housing Montana Fund within 15 days of enactment, directly supporting state housing programs and affordable housing initiatives. It required the Department of Commerce to update administrative rules related to housing by the start of the 70th legislative session. The bill would have taken effect July 1, 2025, but died in committee on May 23, 2025, after being tabled in April 2025. This was a substantive funding bill, not a procedural measure, with no further legislative action taken.

Maddy summarySB 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.

Maddy summarySenate Bill 237 requires the Revenue Interim Committee to provide a recommendation to the Legislature regarding potential revisions to property tax rates. This recommendation must be based on a "taxable value neutrality report" prepared by the Department of Revenue. The report outlines tax rates necessary to maintain overall taxable value neutrality for specific property classes (Class 3, 4, and 10) during their two-year reappraisal cycles. This process ensures legislative review and input on property tax adjustments following property revaluations, indirectly affecting property owners.