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MontanaHB 2069th Legislature, Regular Session (2025)HouseWALLET

Require voted levies to be in dollars rather than mills

Sponsored By: Larry Brewster (Republican)

Became Law

Local FinanceLocal GovernmentTaxation--PropertyTaxation (Generally)Taxation--PropertySchool FinanceRevenue, Local

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 3 costs, 2 mixed.

Property tax caps tied to inflation

Local governments set their base mill cap to raise last year’s actual property taxes, plus half of the 3‑year average inflation. The Department uses the CPI‑U (1982‑84=100) to compute that inflation. If a government levies fewer mills than allowed, it can carry that unused authority forward to future years. It may increase mills to make up for lower reimbursements, but not for tax‑base losses that state law already reimburses. Net or gross proceeds taxes are left out of the base calculation.

What counts as newly taxable property

Levies apply to all property in the unit, including newly taxable property. Newly taxable includes annexations, new construction, expansions or remodels, transfers into the taxing unit, certain first sales or subdivisions, and property moved from tax‑exempt to taxable. For class four property built or expanded since the last reappraisal, the newly taxable amount is this year’s market value minus last year’s market value. Increases inside a TIF do not count, but when TIF value is released or a TIF ends, that value becomes newly taxable, with reporting tied to whether termination happens before or after certification. The Department can set rules for how to measure these valuation changes.

Special levies outside normal caps

Some levies do not count against the usual mill cap, such as certain judgment, emergency, retirement, and other special‑purpose levies. School district levies and some regional resource authority levies also sit outside the main cap. Local governments may resume airport support levies even after a two‑year lapse. These special levies cannot be rolled into next year’s base amount, which helps keep the base from ratcheting up.

Voter approval and dollar-based ballots

New or higher levies that need voter approval must go to an election. If a majority votes yes, the government may impose the levy as a dollar amount or as mills stated in the resolution. Ballots and voter materials must clearly state the purpose and show costs in dollars (and approximate mills), and must list the dollar impact for homes worth $100,000, $300,000, and $600,000. Ballots also state that higher property taxes may raise rental costs. A governing body may lower an approved levy in any year without losing the right to levy up to the approved amount later, and an older authorization section is repealed so these current rules control.

State rounds mills up to tenths

The state calculates certain statewide mills, expressed in tenths, and caps them at each law’s limit. If the calculation is not an even tenth, it rounds up to the next tenth. This small rounding can slightly raise your annual property tax bill.

Sponsors & Cosponsors

Sponsor

  • Larry Brewster

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 305 • No: 192

House vote • 3/25/2025

Do Concur

Yes: 57 • No: 42

House vote • 3/24/2025

Do Concur

Yes: 57 • No: 41

House vote • 2/27/2025

Do Concur

Yes: 34 • No: 16

House vote • 2/26/2025

Do Concur

Yes: 35 • No: 15

House vote • 1/23/2025

Do Pass

Yes: 63 • No: 37

House vote • 1/22/2025

Do Pass

Yes: 59 • No: 41

Actions Timeline

  1. Chapter Number Assigned

    4/7/2025House

  2. Signed by Governor

    4/7/2025House

  3. Transmitted to Governor

    4/1/2025House

  4. Signed by President

    4/1/2025Senate

  5. Signed by Speaker

    3/28/2025House

  6. Returned from Enrolling

    3/25/2025House

  7. Sent to Enrolling

    3/25/2025House

  8. 3rd Reading Passed as Amended by Senate

    3/25/2025House

  9. 2nd Reading Senate Amendments Concurred

    3/24/2025House

  10. Returned to House with Amendments

    2/27/2025Senate

  11. 3rd Reading Concurred

    2/27/2025Senate

  12. 2nd Reading Concurred

    2/26/2025Senate

  13. Revised Fiscal Note Printed

    2/25/2025House

  14. Revised Fiscal Note Signed

    2/24/2025House

  15. Revised Fiscal Note Received

    2/24/2025House

  16. Revised Fiscal Note Requested

    2/19/2025House

  17. Committee Report--Bill Concurred as Amended

    2/13/2025Senate

  18. Committee Executive Action--Bill Concurred as Amended

    2/13/2025Senate

  19. Hearing

    1/30/2025Senate

  20. Referred to Committee

    1/27/2025Senate

  21. First Reading

    1/24/2025Senate

  22. Revised Fiscal Note Printed

    1/23/2025House

  23. Transmitted to Senate

    1/23/2025House

  24. 3rd Reading Passed

    1/23/2025House

  25. Revised Fiscal Note Signed

    1/23/2025House

Bill Text

  • As Amended (Version 4)

    3/25/2025

    PDF

  • Enrolled

    3/25/2025

    PDF

  • As Amended (Version 3)

    2/13/2025

    PDF

  • As Amended (Version 2)

    1/20/2025

    PDF

  • Introduced

    11/26/2024

    PDF

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