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.
This bill revises property tax laws to create a new rebate program for 2024 principal residences, adjusts eligibility for reduced tax rates for long-term rentals and owner-occupied homes, and updates the timeline for applying for these benefits. The changes aim to streamline the process for homeowners to receive tax relief while clarifying definitions and application deadlines.
Scope change
The bill expands the scope of property tax relief by introducing a new rebate mechanism and modifying the criteria for reduced tax rates on residential properties.
FISCAL
Added a new property tax rebate for principal residences based on taxes paid in 2024.
ELIGIBILITY
Modified the definition of 'long-term rental' to require a minimum of 7 months of occupancy per year instead of 9 months.
TIMELINE
Updated the effective dates for tax years and application deadlines, shifting some provisions to apply starting in tax year 2026.
DEFINITION
Revised the definition of 'principal residence' to allow owners who moved during the year to qualify if they lived in each residence for a total of 7 consecutive months.
REQUIREMENT
Changed the application process to require electronic submission or mail by March 1 of the preceding year for the following tax year.
HB0231_X(12).pdf→HB0231_5(17).pdf·6 edits
MODERATE
This bill revision updates the bill number to HB0231.5 and adjusts the effective dates for property tax rebates and reduced tax rates to align with the 2025 tax year. It expands the definition of 'long-term rental' to include properties vacant for repairs, clarifies the 'principal residence' requirements, and establishes a transition period where owners automatically qualify for reduced rates in 2025 and 2026 if they claimed a rebate in 2023.
Scope change
The bill's applicability has shifted forward by one year, moving from the 2024 tax year to the 2025 tax year for new rebates and reduced rates. It also introduces a temporary automatic qualification period for existing homestead applicants.
TIMELINE
Updated the tax year reference from 2024 to 2025 for the property tax rebate and reduced tax rate provisions.
DEFINITION
Added a new definition for 'Tax year 2025' and renumbered subsequent year definitions to reflect the new timeline.
ELIGIBILITY
Changed the 'long-term rental' definition to explicitly include properties that are vacant for no more than 5 months to complete documented property repairs.
Revised the 'principal residence' definition to ensure the owner lived in the home for at least 7 months of the tax year.
REQUIREMENT
Introduced a transition period where owners who claimed a 2023 rebate automatically qualify for reduced rates in 2025 and 2026 without reapplying.
Established a temporary homestead reduced tax rate application process for owners who do not meet the automatic qualification criteria but would otherwise qualify.
HB0231_X(9).pdf→HB0231_X(10).pdf·4 edits
MODERATE
HB 231 was updated to shift the effective tax year from 2025 to 2026, likely aligning the legislation with the start of the 2026 legislative session. The bill now explicitly defines 'Tax year 2026' and removes the previous definition for 2025. Additionally, the homestead reduced tax rate application process was clarified to ensure owners who previously received rebates for 2024 automatically qualify for the 2026 rate, while new applicants must apply by March 1 of the preceding year.
Scope change
The bill's applicability has been delayed by one year; it now applies to tax year 2026 instead of 2025, and the definitions section was renumbered to reflect this shift.
TIMELINE
The effective tax year changed from 2025 to 2026, and the definition for 'Tax year 2026' was added while the 2025 definition was removed.
ELIGIBILITY
The homestead reduced tax rate eligibility was clarified to automatically include owners who received rebates for tax year 2024, ensuring continuity for qualifying properties.
DEFINITION
The definitions section was renumbered, removing the reference to 'sections 1 through 7 6' and correcting it to 'sections 1 through 6'.
REQUIREMENT
New application requirements were added, specifying that applicants must provide the property's geocode or identifier and their social security number.
HB0231_X(3).pdf→HB0231_X(4).pdf·2 edits
MINOR
The bill updates the start date for a reduced homestead tax rate from 2026 to 2027 and reorganizes the text defining the tax rate's application. This change delays the financial benefit for homeowners by one year and clarifies the statutory language regarding the tax reduction.
Scope change
The scope of the tax benefit is delayed by one year, shifting eligibility from tax year 2026 to tax year 2027.
TIMELINE
The effective date for the homestead reduced tax rate was changed from tax year 2026 to tax year 2027.
DEFINITION
The definition of 'Tax year 2026' was removed, and the text describing the tax rate application was restructured to align with the new timeline.
HB0231_6(5).pdf→HB0231_X.pdf·4 edits
MODERATE
The bill was transitioned from a draft version to an enrolled (final) version, incorporating significant policy updates to property tax laws. Key changes include expanding the definition of 'long-term rental' to allow for up to 5 months of vacancy for repairs, clarifying that owners who moved during the year may still qualify for homestead tax rates if they lived in a principal residence for 7 consecutive months, and establishing specific tax year definitions for 2026 and 2027 to guide future applications.
Scope change
The bill's scope was expanded to include specific eligibility criteria for owners who change residences during the tax year and updated definitions for future tax years (2026 and 2027) to ensure clarity for upcoming filing periods.
DEFINITION
The definition of 'long-term rental' was updated to explicitly allow a property to be vacant for up to 5 months if the vacancy is for documented property repairs.
ELIGIBILITY
The homestead reduced tax rate eligibility was modified to allow owners who moved during the tax year to still qualify if they resided in a principal residence for at least 7 consecutive months.
TIMELINE
New definitions were added for 'Tax year 2026' and 'Tax year 2027' to establish clear timeframes for future tax assessments and applications.
REQUIREMENT
The application process for the homestead reduced tax rate was updated to allow electronic submissions via the department's website in addition to mail applications.
This bill was revised to transition from a temporary conference committee version to a final enacted version, updating the bill number and removing obsolete amendment headers. The substantive policy changes restructure the homestead and rental property tax rate definitions, clarify eligibility criteria for principal residences, and establish a specific transition period for properties that automatically qualified in 2023-2024 to continue receiving reduced rates through 2026.
Scope change
The bill's scope expanded to include a new automatic qualification process for homestead reduced tax rates for tax years 2025 and 2026, while also defining specific conditions for temporary homestead rates for those who do not meet the automatic criteria.
ELIGIBILITY
Added a new section establishing that class four residential properties automatically qualify for homestead reduced tax rates in 2025 and 2026 if the owner received a rebate in 2023, did not change ownership after July 31, 2023, and the property remains their principal residence.
Created a temporary homestead reduced tax rate application process for owners who do not meet the automatic qualification criteria but would otherwise qualify, allowing applications by March 1, 2025, and March 1, 2026.
DEFINITION
Updated definitions for 'Principal residence' and 'Tax year' to specify occupancy requirements (e.g., living in the home for at least 7 months) and to explicitly define tax years 2025, 2026, and 2027.
TECHNICAL
Removed internal amendment headers, drafter notes, and coordination instructions intended for the legislative process, replacing them with the final authorized print version format.
TIMELINE
Clarified effective dates for various sections, setting the homestead reduced tax rate transition period to expire after tax year 2026 and requiring applications for continued rates to be submitted by specific deadlines in 2025 and 2026.
The bill was reorganized and its scope was significantly expanded to include commercial and industrial properties, golf courses, and agricultural land alongside residential properties. The legislation now provides specific funding of $90 million to assist with property taxes for a broader range of property types, and it establishes a new contingency clause that could invalidate certain sections if a related bill (SB 542) is not passed.
Scope change
The bill's scope expanded from focusing primarily on residential properties to explicitly include commercial, industrial, agricultural, and golf course properties.
FISCAL
Added a new section transferring $90 million from the General Fund to the Property Tax Assistance Account by July 1, 2025.
SCOPE
Added definitions and eligibility criteria for 'Long-term rental' properties, expanding the types of real estate covered by the tax assistance.
Added new provisions allowing commercial, industrial, agricultural, and golf course properties to qualify for tax adjustments, significantly broadening the bill's applicability beyond residential homes.
TIMELINE
Added a contingency effective date clause stating that specific sections of the act become void if Senate Bill No. 542 is passed and approved.
DEFINITION
Reorganized and renumbered the definitions section to accommodate the new property types and clarified the tax year definitions.
HB0231_4(11).pdf→HB0231_5(4).pdf·3 edits
MINOR
This bill updates the bill number from HB 231.4 to HB 231.5 and corrects a formatting error in the text where the word 'qualifies' was split across lines. It also standardizes the capitalization of the word 'owner' in the eligibility section.
Scope change
The bill's scope and applicability remain unchanged; the modifications are technical corrections to the bill number and text formatting.
TECHNICAL
Updated the bill identifier from HB 231.4 to HB 231.5 throughout the document.
Fixed a line break error in the eligibility criteria, ensuring the word 'qualifies' is written as a single word instead of being split.
Corrected the capitalization of the word 'owner' to be consistent with standard English usage.
HB0231_1(18).pdf→HB0231_4(7).pdf·7 edits
MODERATE
The bill text was updated to reflect a new version (HB0231.4) with significant changes to the list of sponsoring legislators and the bill's title. The most substantive policy change is the addition of a new definition for 'Long-term rental,' which now includes properties that are vacant for up to 5 months for documented repairs, expanding eligibility for tax reductions. The bill also adds 15-30-2120 to the list of amended statutes and adjusts the effective date language.
Scope change
The scope of the bill was expanded to include an amendment to section 15-30-2120, and the definition of 'long-term rental' was broadened to allow for temporary vacancy due to repairs.
TECHNICAL
The bill number and version were updated from HB 231.1 to HB0231.4, and the header formatting was adjusted.
REQUIREMENT
The list of sponsoring legislators was completely replaced with a new set of names.
The list of amended MCA sections was updated to include 15-30-2120 and remove 15-15-102.
SCOPE
The bill title was revised to explicitly mention providing a property tax rebate for tax year 2024 and temporarily reducing Class Four residential property tax rates.
DEFINITION
A new definition for 'Long-term rental' was added, specifying that properties can be vacant for no more than 5 months to complete documented property repairs while still qualifying for the rate.
A new definition for 'Tax year 2024' was added to establish the specific period for the property tax rebate.
TIMELINE
The effective date language was changed from 'immediate effective date' to 'immediate effective date dates' (plural).
HB0231_2(12).pdf→HB0231_1(18).pdf·3 edits
MINOR
The bill was renumbered from HB 231.2 to HB 231.1 and the list of sponsoring legislators was completely updated. The most significant policy change is the removal of a specific requirement for rental properties to have been rented for at least 9 months, simplifying the criteria for claiming a reduced tax rate. Additionally, a redundant word was removed from the definition of a principal residence to clarify the text.
Scope change
The bill's scope remains focused on property tax reductions for homesteads and rental properties, but the eligibility criteria for rental properties were simplified by removing a duration requirement.
TECHNICAL
The bill number was changed from HB 231.2 to HB 231.1, and the list of sponsors was replaced with a new set of names.
ELIGIBILITY
The requirement for rental properties to be rented for at least 9 months was removed, making it easier for owners to qualify for the reduced tax rate.
DEFINITION
A redundant word ('THERE') was deleted from the section defining a principal residence to improve clarity.
HB0231_3(11).pdf→HB0231_2(12).pdf·1 edit
MINOR
The bill number was updated from HB 231.3 to HB 231.2, likely reflecting a revision or renumbering during the legislative process. The document version date remains 2025, and the core text appears to be largely unchanged in the provided snippets, with no substantive policy modifications to eligibility, funding, or requirements visible in this excerpt.
Scope change
The bill's scope and applicability appear unchanged based on the provided text, as the modifications are limited to the bill identifier and version numbering.
TECHNICAL
The bill number was changed from HB 231.3 to HB 231.2, indicating a revision or renumbering of the legislation.
HB0231_4(6).pdf→HB0231_3(11).pdf·5 edits
MODERATE
The bill was renumbered from HB 231.4 to HB 231.3 and significantly reorganized its text, moving definitions to the beginning. The core policy changes include expanding eligibility for a lower tax rate to include long-term rentals (rented for 28+ days for at least 9 months) and clarifying rules for owners whose principal residence changes during the tax year. The bill also establishes a temporary application process for 2025 and 2026 for those who do not meet the standard automatic qualification criteria.
Scope change
The bill's scope was expanded to explicitly include long-term rentals as eligible for a reduced tax rate, whereas the previous version focused primarily on owner-occupied principal residences.
TECHNICAL
The bill number was changed from HB 231.4 to HB 231.3, and the text was restructured to place definitions at the start.
ELIGIBILITY
Added a new definition for 'long-term rental' to include properties rented for 28 days or more for at least 9 months in a tax year.
Modified the principal residence definition to allow owners who move during the year to still qualify if they lived in a principal residence for at least 7 consecutive months total.
REQUIREMENT
Added a transition provision allowing owners who received a tax rebate in 2023 to automatically qualify for the reduced rate in 2025 and 2026 without re-applying.
TIMELINE
Established specific deadlines for applications: March 1, 2025, for 2025 and 2026 rates, and March 1, 2026, for the 2026 rate.
The bill was updated to reflect the 69th Legislature's 2025 session and revised bill number. Substantive changes include redefining eligibility for the homestead reduced tax rate to require a claim for tax years 2025 and 2026, while establishing a new automatic qualification process for properties that received rebates in 2023. The bill also clarifies definitions for 'principal residence' and 'rental property' and sets specific application deadlines for temporary tax rate reductions.
Scope change
The bill's scope remains focused on Montana property tax reductions, but the applicability of the homestead reduced tax rate has been modified to include an automatic qualification mechanism for specific properties during the 2025-2026 tax years, replacing previous application-only requirements for those years.
DEFINITION
Updated bill metadata to reflect the 69th Legislature 2025 session and new bill number HB0231.4.
Added detailed definitions for 'principal residence' and 'rental property' with specific occupancy and repair duration requirements.
Defined specific tax years (2025, 2026, and 2027) to clarify the timeline for tax rate applications and automatic qualifications.
ELIGIBILITY
Changed eligibility criteria for the homestead reduced tax rate to require a claim for tax years 2025 and 2026, replacing previous language that did not specify these years.
Introduced an automatic qualification process for the homestead reduced tax rate for tax years 2025 and 2026, applicable to properties that received a property tax rebate in 2023 and remained the owner's principal residence.
TIMELINE
Established specific application deadlines: March 1, 2025, for tax years 2025 and 2026, and March 1, 2026, for tax year 2026.
This bill fundamentally shifts Montana's property tax system from a fixed mill levy model to a dollar-based model to protect homeowners from rising property taxes. It replaces specific mill limit language with a requirement that local governments levy enough mills to generate the same tax dollar amount as the previous year, effectively freezing tax rates despite property value increases. The bill also creates a reimbursement mechanism for local governments that lose revenue due to these tax rate reductions.
Scope change
The bill's scope expanded from defining specific tax years (2025-2027) and eligibility criteria to establishing a permanent statewide policy change that supersedes local government charters and voter-approved mill limits regarding property tax levies.
DEFINITION
Removed specific definitions for 'Tax year 2026' and 'Tax year 2027', indicating the policy is no longer limited to a short-term timeframe.
REQUIREMENT
Added a new legislative finding stating that fixed mill levies unfairly increase taxes when property values rise, justifying a change to a dollar-based levy system.
Replaced the definition of 'Owner' and 'Principal residence' with a new rule requiring local governments to calculate mill levies based on the tax dollar amount generated in fiscal year 2025, rather than a fixed number of mills.
FISCAL
Created a new reimbursement provision to compensate local taxing entities for the revenue loss caused by the new tax rate reductions.
ELIGIBILITY
Changed the homestead tax rate transition rules to align with the new dollar-based levy system, removing specific application deadlines and temporary qualification periods.
ENFORCEMENT
Authorized the state department to adopt rules necessary to implement and administer the new property tax structure.
HB0231_4(5).pdf→HB0231_5(1).pdf·3 edits
MINOR
The bill number was updated from HB 231.4 to HB 231.5, likely reflecting a new version or amendment. The text was cleaned up to remove a stray hyphen from the word 'qualifies' and corrected the capitalization of 'owner'. These are technical and formatting changes that do not alter the bill's legal meaning or policy.
TECHNICAL
Corrected a typo by removing an extra hyphen from the word 'qualifies'.
Fixed capitalization by changing the lowercase 'ow ner' to the proper noun 'owner'.
Updated the bill identifier from HB 231.4 to HB 231.5.
HB0231_3(10).pdf→HB0231_4.pdf·4 edits
MODERATE
The bill was renumbered from HB 231.3 to HB 231.4 and updated to include a new amendment to section 15-30-2120. The core policy changes involve expanding the definition of 'Long-term rental' to include properties vacant for repairs and adding a new definition for 'Tax year 2024' to establish a property tax rebate baseline. Additionally, the automatic qualification rules for homestead tax rates were modified to ensure continuity for properties that received specific rebates in 2023.
Scope change
The bill's scope was expanded by adding a new statutory amendment (15-30-2120) and clarifying the timeline for tax year 2024 rebates.
TECHNICAL
The bill number was updated from HB0231.3 to HB0231.4, and the list of amended statutes was updated to include section 15-30-2120.
DEFINITION
The definition of 'Long-term rental' was expanded to include properties that are vacant for no more than 5 months while completing documented property repairs.
A new definition for 'Tax year 2024' was added to establish the period for claiming a property tax rebate.
ELIGIBILITY
The automatic qualification criteria for homestead reduced tax rates were updated to reference the receipt of a property tax rebate for tax year 2023.
The bill was renumbered from HB0231.003.022 to HB0231.3 and its title was simplified to focus on revising tax rates for specific property classes rather than listing every provision. The most significant substantive change is the reorganization of definitions, which now clearly distinguishes between 'principal residence' and 'long-term rental' properties, and adds specific criteria for owners who move during the tax year. A new automatic qualification process was added for the 2025 and 2026 tax years, allowing homeowners who received a rebate in 2023 to automatically qualify for the reduced rate without applying, provided the property ownership and residence status remain unchanged.
Scope change
The bill's scope shifted from a general revision of property tax laws to a more targeted revision focusing on Class Four residential and commercial property rates, with specific new provisions for automatic eligibility in the near term.
DEFINITION
Definitions were restructured to explicitly separate 'long-term rental' and 'principal residence' criteria, adding a new clause for owners who change residences during the year to maintain eligibility.
ELIGIBILITY
A new automatic qualification mechanism was introduced for tax years 2025 and 2026, granting the homestead reduced tax rate to properties that qualified for a 2023 rebate without requiring a new application.
TIMELINE
Specific effective dates were added for tax years 2025, 2026, and 2027 to clarify when the new rates and automatic qualification rules apply.
TECHNICAL
The bill number was updated to HB0231.3 and the bill title was shortened to remove redundant descriptions of the appeal process and definitions.
The bill was updated to reflect a new draft version (HB0231.003.022) with a revised title and expanded scope to include a property tax rebate for 2024 principal residences. The definitions for 'long-term rental' and 'principal residence' were reorganized and clarified, adding specific criteria for vacancy due to repairs. The automatic qualification rules for the homestead tax rate were adjusted to include properties that received rebates in 2023 or qualified for other assistance programs in 2024.
Scope change
The bill's scope was expanded to include a temporary property tax rebate for principal residences based on 2024 taxes, in addition to revising tax rates for Class Four residential and commercial properties.
TITLE
The bill title was updated to explicitly include a property tax rebate on principal residences based on 2024 taxes.
DEFINITION
The definition of 'long-term rental' was restructured to clarify that the property must be rented for 28+ days for at least 9 months or vacant for repairs for no more than 5 months.
The definition of 'principal residence' was reorganized to specify that the owner must have lived there for at least 7 months or, if moving, paid taxes while residing in each principal residence for at least 7 consecutive months.
ELIGIBILITY
Automatic qualification for the homestead reduced tax rate was expanded to include properties that received a 2023 tax rebate or qualified for property tax assistance/disabled veteran programs in 2024.
TIMELINE
The text was updated to reference tax year 2024 for the new rebate eligibility and clarified the expiration of automatic qualification after tax year 2026.
HB0231_2(11).pdf→HB0231_3.pdf·1 edit
MINOR
The bill number was updated from HB 231.2 to HB 231.3, reflecting a revision in the legislative process. This change indicates that the bill has been amended or renumbered for the 69th Legislature in 2025, likely due to modifications made during committee review or floor debate.
Scope change
The legislative scope remains focused on the same subject matter, but the bill identifier has been updated to track its progression through the legislative session.
TECHNICAL
The bill number was changed from HB 231.2 to HB 231.3, which is a standard administrative update to reflect the bill's current version in the legislative record.
HB0231_1(17).pdf→HB0231_2.pdf·4 edits
MODERATE
The bill underwent significant formatting and sponsorship updates, with the list of sponsors being completely rewritten. A minor technical correction was made to the text regarding the required rental duration for tax rate eligibility, changing '9 months' to '9 7 months' (likely a typo intended to be '9 months' or a specific duration). Additionally, the word 'THERE' was inserted into the main body text, which appears to be a formatting error rather than a substantive policy change.
TECHNICAL
The list of bill sponsors was completely replaced with a new set of names.
The header text was reformatted, changing the bill number format from 'HB 231.1' to 'HB0231.2' and adjusting the year placement.
The word 'THERE' was inserted into the section defining the homestead reduced tax rate, appearing to be a formatting artifact.
ELIGIBILITY
The text describing the rental period requirement for the reduced tax rate was altered from '9 months' to '9 7 months', likely an unintentional formatting error.
HB0231_1(4).pdf→HB0231_1(5).pdf·1 edit
MINOR
The bill underwent a minor formatting adjustment where a list of names was restructured to improve readability. No substantive policy changes, such as new funding, eligibility criteria, or legal requirements, were introduced.
TECHNICAL
A list of names on line 5 was reformatted from a single line to a multi-line layout for better visual organization.
HB0231_1.pdf→HB0231_1(1).pdf·1 edit
MINOR
The list of legislators who introduced the bill was completely rewritten, replacing the original sponsors with a new set of co-sponsors. This change alters the political coalition behind the legislation but does not modify the bill's actual text, legal requirements, funding, or scope.
TECHNICAL
The names of the bill's sponsors were replaced with a different set of legislators, indicating a shift in the bill's political support without changing its substantive content.
LC0173.pdf→HB0231_1.pdf·1 edit
MINOR
The bill was renumbered from LC0173 to HB 231 and the sponsor list was updated to reflect the current legislators. The substantive policy text, including definitions of tax rates, eligibility criteria for homestead and rental properties, and application deadlines, remains unchanged.
TECHNICAL
The bill number was changed from LC0173 to HB 231, and the list of sponsoring legislators was updated.
