SB 215 revises Montana's public school funding system by redefining the "basic system of free quality public schools" to explicitly include open enrollment, student achievement tracking, and transparency in spending. It requires the legislature to consider specific factors when setting funding - such as student needs (including special education, English learners, and American Indian students), school density, and teacher retention - while mandating that funding follows students across district lines during open enrollment. The bill also directs the funding formula to use current-year enrollment data, include annual cost-of-living adjustments, and clearly show how funds impact student outcomes. These changes apply to all public school districts in Montana, aiming to make funding more equitable and accountable.
SB 549 would have provided Montana taxpayers with a $1,250 annual income tax credit for eligible K-12 education expenses paid for children in public schools. It directly affected parents, guardians, and teachers of public school students by covering costs like tuition, textbooks, online learning programs, educational therapies, and school supplies. The credit would apply to expenses paid to public schools or specific accredited/non-accredited providers (with disclosure), but could not exceed a taxpayer’s total tax liability. The bill aimed to offset rising education costs for families in Montana’s public education system. (Note: This bill died in committee in May 2025 and did not become law.)
SB 343 would change how Montana allocates remaining coal severance tax revenue after other specified uses. Currently, until 2027, interest income from the coal trust fund is sent to the general fund for specific programs like agriculture development, small business centers, and library services. This bill amends the law to redirect all remaining coal tax revenue (after other allocations) directly to the coal severance tax permanent fund starting July 1, 2027, instead of the general fund. The policy change would shift funding away from current general fund programs toward the coal trust fund, which supports coal-dependent communities and projects.
SB 99 amends Montana tax law to treat certain rental and accommodations income earned by tax-exempt organizations as "unrelated business income" subject to taxation. This affects nonprofits and other exempt groups that previously did not pay tax on such income, including short-term rentals or property leasing activities. The bill creates new reporting requirements for these organizations and specifies how to calculate the tax based on Montana’s existing tax rates and sourcing rules. It modifies existing statutes to clarify that this income must now be included in taxable income calculations, rather than remaining exempt. The change applies to income generated from business activities unrelated to the organization’s exempt purpose.
HB 313 aimed to establish a grant program to provide funding for public swimming pools operated by local governments and nonprofit organizations. It would have created a "public swimming pool infrastructure account" and appropriated $5 million from the state general fund, to be administered by the Department of Commerce. These grants were intended to support capital construction, maintenance, repair projects, and equipment purchases for eligible aquatic facilities. Grants of $25,000 or more would have required a 1:5 match, and funding was limited to $1 million per county and $500,000 per project.
HB 155 revises property tax laws for Class Four residential and commercial properties. For residential properties, it introduces a graduated tax rate for single-family homes above $1.5 million in market value and sets specific rates for vacant residential lots under $50,000 and certain rental multifamily units over $2 million. For commercial and industrial properties, the bill exempts the first $200,000 of market value from taxation and establishes specific tax rates for the remaining value, with a different rate for golf courses. The bill would have taken effect immediately and applied retroactively to property tax years beginning after December 31, 2024.
HB 827 aimed to revise the taxation of Social Security benefits at the state level in Montana. The bill proposed to modify how the federal calculation for taxing Social Security benefits is applied when determining an individual's state income tax. This change would have directly affected Montana residents receiving Social Security benefits by potentially altering the portion of those benefits subject to state income tax. The bill included provisions for a delayed effective and applicability date.
HB 329 aims to encourage the formation of ammunition component manufacturing businesses in Montana. It establishes various state tax exemptions for qualified manufacturers, including property, individual income, corporate income, and other business-related taxes. To receive these exemptions, manufacturers must make their products available to in-state consumers at prices no higher than those for out-of-state purchasers. Additionally, the bill provides individual and corporate income tax exemptions to investors and lenders who provide loans to these eligible ammunition component manufacturers.
HB 876, the Sawmill Revitalization Act, creates a special state revenue account to support the reopening of closed sawmills. It transfers $6 million from the big sky economic development fund into this account. The Board of Investments will administer these funds, offering loans at an interest rate not exceeding 3% to parties with the capacity to return closed sawmills to commercial operation. Priority for these loans is given to sawmills that closed most recently. This act is effective July 1, 2025, and terminates on December 30, 2026.
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.
