This Montana bill allows property owners to request a refund of property taxes if their local government fails to address public nuisances like illegal camping, loitering, or substance use on their property. Property owners must document expenses they incurred to mitigate these issues, and the refund amount cannot exceed the taxes they paid for the prior year. Local governments have 30 days to accept or reject refund applications, and if they reject the request, property owners can sue in court with the government bearing the burden of proof. The state treasurer will withhold refund amounts from local government entitlement payments, and the bill includes rules to prevent abuse while allowing property owners to apply annually as long as the nuisance persists.
HB 826 proposes to revise Montana's tobacco tax laws by increasing the state tax on cigarettes. The bill would raise the tax from $1.70 to $2.70 for each package containing 20 cigarettes. This tax is precollected by wholesalers and applies to individuals who purchase cigarettes for consumption. The bill also retains existing provisions regarding tax exemptions for sales to tribal members on Indian reservations.
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 429, titled the "Inflation Protection Act of 2025," proposed creating a new state special revenue account within the state special revenue fund. This account would be initially funded by a $50 million transfer from the state's general fund by July 15, 2025, with additional funding from future legislative transfers. The bill authorized the Board of Investments to invest the funds in this account in precious metals, digital assets, and stablecoins. Any proceeds generated from these investments would remain within the account, affecting the state's financial management and investment strategies.
HB 910 is a legislative bill that aims to provide for the taxation of vapor products. It does this by amending the existing definition of "tobacco products" in state law (Section 16-11-102, MCA) to include substances consumed with devices like e-cigarettes, vape pens, and e-hookahs, regardless of nicotine content. This change would subject vapor products to the same tax regulations as other tobacco products. The provisions of this act would apply to products sold by wholesalers after June 30, 2025.
HB 326, titled the "State Energy Resource Severance Act," would establish a new 10% tax on the sale price of electrical energy produced in the state. This tax would apply to electricity generated from sources such as water, wind, and solar, but specifically exempts coal-fired electrical generation. The bill also reduces the existing coal severance tax rate to match this new electrical energy production tax rate. Revenue from this new tax would be allocated to special accounts, primarily for local government infrastructure projects traditionally funded by coal.
HB 841 proposed a constitutional amendment in Montana to change the allocation of state sales or use tax revenue. It would have required that revenue from a statewide sales tax, capped at 4%, be used primarily to reduce property taxes funding public schools and the Montana University System. The bill allowed for this revenue to be appropriated for other purposes if three-fourths of the legislature voted to do so. If approved by voters in November 2026, the amendment would have taken effect on July 1, 2027.
HB 405 proposed to increase the maximum reimbursement rates that school districts receive from state and county sources for student transportation. The bill specifically raised the per-mile rates for school buses of different passenger capacities, as well as for non-bus mileage. The intent was to lower school district property taxes designated for transportation expenses. These changes would have applied to school district transportation budgets starting July 1, 2025.
HB 844 proposes changes to how class eight business equipment is taxed. It aims to increase the amount of business equipment that is exempt from property taxes, directly benefiting businesses that own such equipment. Key provisions include adjusting the exemption amount annually for inflation and exempting individual pieces of equipment costing less than $250. To address potential revenue impacts from these changes, the bill provides for reimbursements to local governments, tax increment financing districts, and the Montana University System.
HB 21 proposes to establish a Montana workforce housing tax credit for taxpayers owning an interest in qualified low-income housing projects. Beginning in 2026, these taxpayers could claim the credit against their income or insurance premium taxes for a six-year period, with unused portions carried forward. The Board of Housing would allocate these credits, up to $1.5 million annually, using a qualified allocation plan. The bill defines "qualified project" as a low-income building under federal law and adds this new credit to the list of tax credits subject to legislative review.
