HB 340 would have created Montana's BEST (Bolstering Educators' Support and Training) program to support teachers in their first three years of teaching. It required pairing new teachers with experienced mentors, providing $2,500 stipends for mentors and $600 stipends for new teachers (with $300 contributed by their school district), and allocating $1 million annually from state funds. The program aimed to improve teacher retention and student outcomes through structured training, regional gatherings, and data collection, with special focus on "impacted schools" as defined in existing law. The bill was vetoed by the Governor on June 19, 2025, so it did not become law.
HB 551 would have created a state program to replace funding for Montana school districts that eliminate small copayments for reduced-price school lunches and breakfasts. It aimed to remove financial barriers for families meeting federal income eligibility (for low-income meals) by providing $600,000 annually starting in 2025 to offset lost revenue. The bill required the state superintendent to administer the program and adopt rules, with funding intended to cover districts voluntarily removing fees. However, the bill was vetoed by the governor on June 19, 2025, so it did not become law.
SB 536 revises Montana's contractor gross receipts tax by creating an exemption for certain individuals and businesses in good standing, requiring them to apply for the exemption. It specifically allows employee stock ownership plan (ESOP) companies to claim a credit against real property taxes, extending the timeframe to claim this credit from 5 to 7 years. The bill also clarifies that this credit can offset property taxes paid in Montana for business-related property. These changes apply to contractors with public contracts exceeding $80,000 and take effect January 1, 2026.
HB 339 would change Montana's school funding formula to provide 6th graders in accredited middle schools with the same per-pupil funding rate as 7th and 8th graders - currently, 6th graders receive lower elementary school funding. The bill amends Montana Code Sections 20-9-306 and 20-9-311 to eliminate this disparity, directly affecting school districts operating middle schools with 6th graders. It aims to align funding with accreditation standards, enabling middle schools to offer expanded programs like career and technical education. The policy change would adjust state education funding calculations for these districts without altering school structures.
SB 203 would increase Montana's income tax thresholds, meaning more income would be taxed at the lower 4.7% rate instead of the higher 5.9% rate. Specifically, it raises the income level before the higher rate applies to $200,000 for joint filers, $150,000 for heads of household, and $100,000 for single filers. This change affects all Montana individual income taxpayers, potentially reducing their tax burden for income falling within the new, higher thresholds. The bill also includes retroactive application to tax years beginning after December 31, 2024.
SB 2 clarifies how local governments calculate property tax levies when a tax increment financing (TIF) district ends. It specifies that the value previously held in the TIF district (the "increment") must be treated as "newly taxable property" for tax calculations in the year of termination or the following year. This directly affects Montana local governments, as it ensures they can include this value when determining property tax revenues under existing levy formulas, without treating it as new construction or annexation. The bill amends Montana Code Annotated sections 15-10-420 and 20-9-336 to define these rules clearly.
SB 322 increases Montana's tax exemption for business equipment by setting a $500 threshold, meaning equipment costing under $500 would be automatically exempt from taxation. It also requires annual inflation adjustments to the exemption amount and modifies tax code sections to clarify definitions and eligibility. Local governments and tax increment financing districts would receive reimbursements for lost property tax revenue due to these changes. The bill directly affects Montana businesses purchasing equipment under $500 and local governments managing property tax revenue.
SB 434 provides a property tax rebate of up to $400 for Montana homeowners who lived in their principal residence for at least 7 months during tax year 2024. It directly affects individual homeowners (not businesses or multiple properties) who paid Montana property taxes on their primary residence, with the rebate amount capped at $400 or the actual taxes paid, whichever is lower. To claim the rebate, homeowners must submit an application electronically (August 15-October 1, 2025) or by mail (postmarked by October 1), including proof of residency and property ownership. The rebate is not subject to Montana income tax, and false claims may result in penalties of 300% of the rebate plus 12% annual interest.
SB 324 revises vehicle registration fees for high-end vehicles, adding a 1% fee based on the vehicle's manufacturer's suggested retail price (MSRP) for the first year of registration after January 1, 2026, for cars over $150,000 and motorhomes over $300,000. It directly affects owners of these high-value vehicles, replacing a flat annual add-on fee with the percentage-based assessment. Revenue from these fees will fund two specific programs: grants for bridge projects through the Department of Transportation and services for crime victims via the Board of Crime Control. The bill also updates related sections of Montana law governing registration fees and special revenue accounts.
SB 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.
