Budget & Taxes (Sales Tax)

died · Montana · House May 20, 2025

HB 489: Revise sales tax laws to provide for local option tax

HB 489, titled the "Local Option Property Tax Relief Act," would have allowed consolidated city-counties or counties to implement a local sales tax. This tax, requiring voter approval and capped at 4%, would apply to specific goods and services, excluding items like medical supplies and SNAP-eligible food products. The revenue generated from this local option tax would be specifically used to provide property tax relief for primary residences and long-term rental properties. A portion of the revenue would also be distributed to local governments that do not levy the tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates local sales tax (max 4%) to fund property tax relief for primary residences/rentals, directly reducing tax burden on homeowners per summary.95% confidence ✓ HousingSupports HousingProvides property tax relief for primary residences and long-term rentals, reducing housing costs and supporting affordability through targeted tax relief.85% confidence

Sub-Topics Business Taxes Sales Tax Property Taxes

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died · Montana · House May 20, 2025

HB 412: Provide exemption for certain modifications to residential property

HB 412 proposed a new property tax exemption for homeowners who modify their existing residential properties to add living space. This exemption would apply to the increase in market value due to the modification, up to a limit of 15% of the property's market value before the modification. However, it would not apply to modifications made within three years of new construction, and only one exemption could be granted every six years, terminating upon the sale of the property. The Department of Revenue would automatically grant this exemption, which was set to begin in tax years after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for home modifications, reducing taxable value increase for homeowners, aligning with tax relief support.90% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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died · Montana · House May 20, 2025

HB 887: Provide property tax relief funded with lodging tax revenue

HB 887 was a legislative bill designed to provide property tax assistance for owners of primary residences. The bill proposed to fund this relief by redirecting a portion of the state's lodging tax revenue. It aimed to amend existing statutes governing the distribution of these lodging tax proceeds. While the bill's intent was to reallocate lodging tax funds for property tax relief, the provided text does not detail the specific changes or mechanisms for how these funds would be redirected.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects lodging tax revenue to fund property tax relief for primary residences, directly providing tax relief through budget reallocation without increasing taxes or defunding services.95% confidence

Sub-Topics Property Tax Revenue Sales Tax

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died · Montana · House May 20, 2025

HB 946: Revise selective sales taxes to provide ongoing property tax relief

HB 946 aimed to provide property tax relief for owners of principal residences by increasing selective sales taxes on lodging and rental cars. The bill proposed a temporary property tax credit of up to $400 for eligible principal residences for tax year 2025, based on 2024 tax payments. It also outlined plans for permanent property tax assistance starting in tax year 2026. The Department of Revenue would have been responsible for certifying principal residences and processing claims, which included an application and appeals process.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief via increased selective sales taxes, directly addressing tax burden management and fiscal responsibility for homeowners.95% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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died · Montana · House May 20, 2025

HB 27: Remove automatic agricultural classification for certain parcels

HB 27 revises the criteria for classifying land as agricultural for property tax valuation. The bill introduces an application and review process for certain agricultural properties, moving away from automatic classification. It also increases the required annual gross income for parcels between 20 and 160 acres to qualify as agricultural land. Furthermore, it establishes a new "idle land" classification with a revised tax rate, replacing the prior "nonqualified agricultural property" classification, directly affecting property owners with these land types.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses agricultural tax loophole by requiring higher income thresholds and application process, increasing tax revenue from non-qualifying parcels through revised classification.85% confidence

Sub-Topics Business Taxes Property Tax Sales Tax Tags Agriculture

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died · Montana · Senate May 23, 2025

SB 371: Generally revise agriculture laws - MT made products

SB 371 would create a tax incentive by allowing Montana taxpayers to subtract income from Montana-produced goods from their individual and corporate income tax calculations. It directly affects businesses and individuals selling goods manufactured or grown within Montana, reducing their taxable income for those specific sales. The bill amends Montana's tax code to define "Montana-produced goods" and establish this subtraction as a specific adjustment to federal taxable income. This policy change aims to support local producers by lowering their state tax burden on sales of locally made products.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax incentive by allowing subtraction of Montana-produced goods income from taxable income, reducing tax burden for local agriculture businesses.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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