HB 505 modifies the Montana Housing Infrastructure Revolving Loan Fund Account. The bill allows this fund to retain all interest and income it earns, rather than those funds being transferred elsewhere. It also directs the state treasurer to transfer $50 million from the general fund into this account by June 2025 and another $50 million by June 2026. These provisions aim to increase the resources available within the revolving loan fund, which supports housing infrastructure projects. The principal of the fund can only be appropriated by a two-thirds vote of each legislative house.
HB 833 provides funding to increase Montana's correctional capacity, directly affecting the state's prison system and the Department of Corrections. The bill establishes a "Future of Corrections Fund" and appropriates a total of $250 million from the general fund. Of this, $30 million is for system assessment, planning, and technology. The remaining $220 million is allocated either for constructing a new state correctional facility or, contingently, for securing additional capacity through other agreements, which may include private correctional facilities, if the budget director determines state construction is not in the state's best interest.
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.
SB 542 generally revises property tax laws, affecting various property owners. The bill freezes property values for tax years 2025 and 2026 at their 2024 levels, unless a decrease is determined by the Department of Revenue. It provides a property tax rebate of up to $400 for principal residences based on 2024 property taxes paid, which taxpayers must claim between August 15 and October 1, 2025. Additionally, the legislation reduces tax rates for Class Three agricultural property and revises rates for Class Four residential and commercial properties, including lower rates for owner-occupied homes, long-term rentals, and a portion of commercial property value.
HB 55 revises the laws governing how public utilities plan for their customers' future energy needs. It requires public utilities to submit detailed resource plans every three years, including evaluations of renewable energy and demand-side management scenarios, and to hold more public meetings before submitting these plans. The bill establishes a special revenue account within the Department of Environmental Quality to fund an independent evaluator, paid for by fees charged to public utilities, who will assist in reviewing these plans. Additionally, the state commission can now engage independent consultants to evaluate utility plans, with these costs being recoverable in rates charged to customers.
SB 253 revises the administrative and certification processes for student scholarship organizations (SSOs) in Montana. The bill requires SSOs to apply for certification from the Department of Revenue and outlines specific requirements they must meet to be certified and accept tax-credit eligible donations. It mandates that SSOs allocate at least 90% of their annual revenue from eligible donations for scholarships and ensures a parent's right to select an education provider. The legislation aims to increase transparency and accountability for these organizations.
Senate Bill 333 repeals the termination date for the existing coal severance tax coal washing credit. This credit, previously set to expire on July 1, 2027, will now continue indefinitely. The bill directly affects coal mining companies and processors that utilize coal washing and are subject to the coal severance tax, allowing them to continue claiming this tax credit.
SB 534 provides a property tax exemption for specific wireless infrastructure in Montana. This bill exempts qualifying wireless infrastructure, placed into service on or after the act's effective date, from property taxes for an initial period of five years. Following this, the exemption gradually phases out over the next five years, after which the property becomes fully taxable. To maintain the exemption, owners must reinvest the tax savings into new communication infrastructure within Montana, without charging those costs to consumers.
SB 117 revises property tax laws for governmental entities, affecting how local governments in Montana calculate their property tax levies. It modifies the maximum allowable inflation-based increase for property tax levies and changes how revenue from newly taxable property is factored into these calculations. The bill also allows cities and counties to establish a "large taxpayer reserve account," requiring them to deposit a percentage of revenue from newly taxable property into it. These funds are restricted and can only be used for specific purposes, such as reducing future mill levies or attracting new industry, if a major taxpayer experiences a significant drop in value or ceases operations.
House Bill 411 (HB 411) exempts agricultural property from local property tax levies that are used to fund open space initiatives. This means that owners of land classified as agricultural will no longer be required to pay the portion of their property taxes designated for open space purposes. The bill also allows counties to reduce any open space payments made to agricultural properties that are now exempt from these levies. This change applies retroactively to property tax years beginning on or after January 1, 2025.
