HB 842 proposed a legislative referendum for Montana voters to decide on establishing a statewide sales tax. If approved by voters, this bill would allow the legislature to enact a sales tax not exceeding 4%. The revenue generated from this sales tax would be exclusively used to reduce property taxes that fund public schools and the Montana university system. The proposed sales tax would apply to final goods and services but include exemptions for necessities such as housing, groceries, fuel, health care, and utilities. The bill was to be submitted to qualified electors at the November 2026 general election for approval.
HB 837 establishes a statewide Retired Teacher Induction and Mentoring Program to support new teachers by pairing them with retired teachers from the same school district. School districts can optionally participate, matching a new teacher with a former teacher for up to three months of guidance. Participating districts compensate retired teachers hourly for up to 36 hours, and the Office of Public Instruction then reimburses these costs. The program, funded by an annual $100,000 state appropriation, aims to provide new teachers with support such as classroom feedback, administrative assistance, and help with district policies.
HB 25 proposed that entities typically exempt from property taxes, such as government bodies or charities, would need to report annually to the Department of Revenue. This report would be required if they lease their property to a non-exempt entity or for a non-exempt use, and would include a description of the leased property and a copy of the lease agreement. If the beneficial use of the property was not properly reported, it would become subject to property taxation. The bill aimed to ensure that properties used for non-exempt purposes are appropriately taxed, even if owned by an exempt organization.
HB 163 proposed creating a new individual income tax credit for health care professionals who volunteer as preceptors in Montana. The bill would allow licensed preceptors to claim a $1,000 credit for each eligible clinical rotation, up to a maximum of $5,000 per tax year, provided they do not receive compensation for their supervisory role. An eligible clinical rotation requires a minimum of 100 hours of direct supervised training for students in various graduate-level health care programs within the state. This nonrefundable credit aimed to support preceptors who educate advanced practice registered nursing, medical, physician assistant, and other health care students.
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 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.
House Bill 950 sought to establish and maintain a Montana trade office in Israel, staffed by the Department of Commerce. The office's primary goal was to promote trade, tourism, and cultural exchange between Montana and Israel. It aimed to strengthen ties and expand opportunities in areas such as agriculture, technology, security, and educational programs. The bill proposed appropriating $500,000 from the general fund for the biennium beginning July 1, 2025, to fund the office. This act was intended to be effective July 1, 2025, and terminate on June 30, 2033.
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.
