Budget & Taxes (Business Taxes)

introduced · Montana · Legislature Mar 17, 2025

LC 3590: Constitutional amendment to use sales tax revenue for education

This bill proposes amending the Montana Constitution to require that sales tax and use tax revenue be used to reduce property taxes for public schools and the Montana University System. The amendment would only allow the legislature to redirect these funds to other purposes if it receives a three-fourths vote from each house. If approved by voters, the change would take effect on July 1, 2027, and would limit the statewide sales tax rate to 4%. The measure requires a two-thirds legislative vote to pass and would be placed on the November 2026 ballot for public approval.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates sales tax revenue for education funding and limits property taxes, directly supporting education budget and tax relief for schools.95% confidence ✓ EducationSupports EducationBill mandates using sales tax revenue to fund public schools and universities, explicitly strengthening education financing.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax

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introduced · Montana · Legislature Feb 6, 2025

LC 1380: Provide exemption for certain modifications to residential property

This bill creates a property tax exemption for homeowners who modify their existing residential structures to add living space. It directly affects owners of class four residential property who make changes like expanding a building or altering its form. The exemption allows owners to exclude the lesser of the increase in market value caused by the modification or 15% of the property's prior year market value from their property tax calculation. The exemption is automatically granted by the department of revenue, but it cannot be claimed for properties built within the last three years, is limited to once every six years per property, and ends when the property is sold. The changes apply to tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax exemption for homeowners modifying residential structures, reducing tax burden and supporting homeownership.85% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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introduced · Montana · Legislature Feb 5, 2025

LC 1754: Exempt agricultural property from open space levies

This bill exempts agricultural property from open space property tax levies in Montana, directly affecting landowners who classify their property for agricultural use. The key provision amends state law to remove agricultural land from the list of properties subject to these levies, which fund various county services like parks, roads, and fire control. If a county had already collected payments from exempt agricultural property, the bill allows counties to reduce those payments to refund the overcharged amount. The law takes effect immediately upon passage and applies retroactively to tax years beginning on or after January 1, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill exempts agricultural property from open space levies, reducing local government revenue for parks, roads, and fire control services.85% confidence ✗ EnvironmentOpposes EnvironmentBill exempts agricultural land from open space levies that fund parks, conservation, and environmental services, reducing local funding for environmental protection.75% confidence

Sub-Topics Business Taxes Property Tax Conservation

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introduced · Montana · Legislature Mar 18, 2025

LC 1714: Revise the taxation of class eight business equipment

This bill revises Montana's property tax rules for business equipment classified as Class Eight, which includes agricultural, mining, manufacturing, and oil and gas machinery and equipment. It increases the exemption threshold so that business equipment costing less than $250 is no longer taxed, and it establishes an annual inflation adjustment mechanism to update the exemption amount each year. To compensate local governments, tax increment financing districts, and the Montana University System for lost tax revenue from these changes, the state will provide reimbursements calculated based on historical tax collections. The bill amends existing state statutes to implement these tax adjustments and reimbursement procedures effective from its passage date.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for small business equipment by increasing exemption threshold and establishing inflation adjustments, promoting fiscal responsibility for businesses.85% confidence

Sub-Topics Business Taxes Revenue

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introduced · Montana · Legislature Dec 20, 2024

LC 993: Require levies or bonds for judgments, settlements, or protested taxes to be submitted to voters

This bill requires voter approval before Montana counties, cities, or school districts can use new property tax levies or issue bonds to pay court judgments, settlements, or property taxes paid under protest. The law amends multiple state statutes to ensure that any special tax increases or debt issued for these financial obligations must be submitted to registered voters for approval. Local governments can still pay these costs from existing funds or insurance, but cannot raise new taxes without a public vote. The changes apply to all political subdivisions and take effect on the bill's applicability date.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill restricts local government ability to use tax levies or bonds for certain obligations, limiting fiscal flexibility and potentially reducing funding for essential services.85% confidence

Sub-Topics Business Taxes Debt & Bonds Property Tax Tags Local Government

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introduced · Montana · Legislature Jan 15, 2025

LC 173: Revise property tax rates for certain property

This bill revises Montana's property tax laws to create lower tax rates for owner-occupied residential properties and long-term rentals, while also adjusting rates for certain commercial properties. It establishes specific eligibility requirements, such as requiring owners to live in a principal residence for at least seven months annually and rent out properties for at least 28 days per month over nine months of the year. The legislation includes an automatic qualification process for 2025 and 2026 for properties that previously received tax rebates, with a transition to a formal application system starting in 2027. Property owners must meet current tax payment requirements and can appeal decisions through a designated process outlined in the bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill lowers property tax rates for owner-occupied homes and long-term rentals, providing tax relief to homeowners and renters while adjusting commercial rates.85% confidence ✓ HousingSupports HousingBill lowers property taxes for owner-occupied homes and long-term rentals, making housing more affordable and protecting residential property owners.75% confidence

Sub-Topics Business Taxes Property Tax Homeownership Property Taxes Renters

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introduced · Montana · Legislature Jan 23, 2025

LC 17: Maintain the county distribution level of metal mines license tax

This bill extends the deadline for distributing metal mines license tax revenue to Montana counties from 2019 to 2037. It directly affects county governments by ensuring they continue to receive a portion of these tax collections for a longer period. The legislation amends three existing state laws to update the termination dates, changing them from 2019 to 2027 and then to 2037. This change allows counties to maintain their current level of funding from metal mines licensing fees for an additional 18 years. The bill does not alter the tax rate or collection process, only the timeline for distributing the collected funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill extends county funding from metal mines license tax, strengthening local government revenue and supporting county budgets.90% confidence

Sub-Topics Business Taxes Revenue

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introduced · Montana · Legislature Feb 17, 2025

LC 1989: Revise property tax rates for agricultural, residential, and commercial property

This bill updates Montana's property tax rates for agricultural, residential, and commercial properties, directly affecting landowners and property owners across the state. It amends existing state statutes to change the tax percentage for agricultural land from 1.7% to 2.16% of productive capacity value and adjusts residential and commercial tax rates from 0.76% to 1.35% of market value, while also modifying how certain mixed-use properties are classified and taxed. The legislation includes specific provisions for nonqualified agricultural land, mining claims, and residential properties over $1.5 million in value, with tax rates applied differently based on property use and size. The changes take effect immediately upon passage and apply retroactively to tax years beginning after December 31, 2024, and the reappraisal cycle starting January 1, 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill increases property tax rates across agricultural, residential, and commercial properties, directly raising tax burdens on landowners and reducing disposable income.95% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Jan 10, 2025

LC 2039: Lower residential, commercial, and agricultural property tax rates

This bill lowers property tax rates for agricultural land, residential properties, and commercial buildings in Montana to reduce the financial impact of recent property value reassessments. It directly affects farmers, homeowners, and business owners by reducing the percentage of their property's value that must be paid in taxes. The key changes include lowering the tax rate for agricultural land to 1.85% of its productive capacity value and reducing residential and commercial tax rates to 0.76% and 1.07% of market value, respectively. The legislation also clarifies how mixed-use properties are classified and taxed, ensuring that improvements on agricultural land are assessed separately from the land itself. These tax rate adjustments apply retroactively to tax years beginning after December 31, 2024, and the reappraisal cycle starting January 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill directly lowers property tax rates for residential, commercial, and agricultural properties, providing tax relief and reducing financial burden on taxpayers.95% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Mar 17, 2025

LC 3589: Legislative referendum on sales tax to fund education

This bill proposes a legislative referendum to let Montana voters decide whether to create a new sales tax of up to 4% to reduce property taxes for public schools and the Montana university system. The proposed tax would exempt essential items like groceries, housing, utilities, fuel, healthcare, and financial services to minimize the burden on consumers. If approved by voters in the November 2026 general election, the sales tax would be implemented to fund education while lowering property tax amounts for school districts and universities. The bill requires the full text and title of the measure to appear on the ballot for voters to consider.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill proposes new sales tax to fund education and reduce property taxes, directly advancing budget and taxation goals for public services.95% confidence ✓ EducationSupports EducationBill proposes new sales tax specifically to fund public schools and university system, directly increasing education funding95% confidence

Sub-Topics Business Taxes Sales Tax

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