All Roll Calls
Yes: 892 • No: 749
MontanaHB 23169th Legislature, Regular Session (2025)HouseWALLET
Revise property tax rates for certain property
Sponsored By: Llew Jones (Republican)
Signed by Governor
TaxationRevenue, LocalTaxation--PropertyRevenue, StateRule Making
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 3 benefits, 1 costs, 7 mixed.
Lower tax rate for long‑term rentals
Starting in tax year 2026, qualifying long‑term rental homes can get a reduced property tax rate. A qualifying rental is leased for 28+ day terms for at least 7 months in the tax year, or vacant up to 5 months for documented repairs. Apply Dec 1–Mar 1; the department will require reapplications for 20% of rentals each year beginning in 2028. Qualified rental multifamily units are taxed at 1.1% of market value.
Some acres taxed at market value
Starting Jan 1, 2025, one acre under a home on ag‑valued or forest‑valued land is taxed at market value. Land under commercial improvements and nearby land needed to support them is also taxed at market value. This can raise taxes for properties that previously had special ag or forest valuation on those acres.
2025 homeowner tax rate brackets
For tax year 2025, homes are taxed at 0.76% on the first $400,000 of value, 1.1% from $400,000 to $1.5 million, and 2.2% above $1.5 million. Another section sets a 0.76% base rate and charges a higher rate on the part of a single‑family home’s value above $1.5 million. These 2025 rules can lower taxes for many lower‑valued homes and raise them for very high‑valued homes.
Lower tax rate for primary homes
Starting in tax year 2026, owners can apply for a lower homestead rate on their principal home. If you got the 2024 rebate, you qualify automatically unless you stop living there or sell. The rate you pay is set by how your home’s value compares with the statewide median. Filing is Dec 1–Mar 1, and approval continues until a change in ownership or use. Filing a false application can lead to criminal charges and a triple penalty with interest.
2025 business property rates and caps
For tax year 2025, commercial and industrial property pays 1.4% on the first $400,000 of value and 1.89% above that. Qualifying golf courses pay half of those rates. Large qualifying multifamily properties have a 1.89% maximum rate cap.
2026+ base property tax rates
Homes that do not get a reduced rate are taxed at 1.9% of value. Commercial and industrial property pays 1.5% if its value is under 6 times the statewide median, and 1.9% at or above that level. Some specified commercial properties pay half of the usual commercial rate. Certain statutes also set commercial property at 1.89% in defined cases. Class four property listed in law that does not qualify for reduced rates pays 1.35%.
Your property tax rebate is not taxed
The law keeps the state from taxing your property tax rebate. If you receive the 2024 principal‑residence rebate, you subtract that rebate amount when you figure Montana taxable income. This lowers your state tax bill a bit. It only applies to the rebate you actually received.
State resets tax medians, funds rollout
The Department of Revenue now calculates median residential and commercial/industrial property values every two years. These medians set the cutoffs used by Montana’s tiered property tax rates. The law also gives the Department $500,000 for the year ending June 30, 2025, and $3,500,000 for the year ending June 30, 2026 to carry out these changes.
One-time $400 rebate for 2024 homes
The law gives homeowners up to $400 back for 2024 property taxes on a principal residence. You file online Aug 15–Oct 1, 2025 or mail a form postmarked by Oct 1, 2025. The department may offset the rebate to pay your state debts. False claims face recovery, a 300% penalty, 12% yearly interest, and criminal charges. The state moves $90 million into a new Property Tax Assistance Account to fund these rebates.
Stronger notices and appeal rules
The department must include property tax help programs in appraisal notices, and tax bills must list them starting Jan 1, 2026. Before attaching a tax lien, the treasurer must mail you a notice at least 2 weeks in advance with help options. County appeal boards can decide if you qualify for reduced rates, but you must file a written application (one per cycle) and attend the hearing unless waived. If the board does not hear your timely case, your request is granted the day after its final meeting that year. Small extra taxes of $5 or less from reassessments are not billed starting Jan 1, 2026.
When these changes apply and interact
Most parts of this act apply to property tax years that start after Dec 31, 2024. Some sections start for tax years after Dec 31, 2025. Certain reimbursements end when the department certifies they are complete, and that part is excluded from normal growth caps for local payments. If other named bills also became law, this act includes rules that void or move overlapping sections to avoid conflicts.
Sponsors & Cosponsors
Sponsor
Llew Jones
Republican • House
Cosponsors
Steve Fitzpatrick
Republican • House
Roll Call Votes
House vote • 4/30/2025
Do Adopt
Yes: 69 • No: 31
House vote • 4/30/2025
Do Adopt
Yes: 60 • No: 39
Senate vote • 4/30/2025
Do Adopt
Yes: 28 • No: 22
Senate vote • 4/29/2025
Do Adopt
Yes: 28 • No: 22
House vote • 4/28/2025
Do Not Concur
Yes: 71 • No: 29
Senate vote • 4/25/2025
Do Concur
Yes: 25 • No: 24
Senate vote • 4/24/2025
Do Concur
Yes: 25 • No: 25
Senate vote • 4/24/2025
ReconsAction -Flowers
Yes: 28 • No: 22
Senate vote • 4/22/2025
Do Concur As Amended
Yes: 26 • No: 24
Senate vote • 4/22/2025
AMD-HB0231.004.006 Kerr-Carpenter D/PASS
Yes: 44 • No: 6
Senate vote • 4/22/2025
AMD-HB0231.004.004 Fern D/PASS
Yes: 27 • No: 22
Senate vote • 4/22/2025
AMD-HB0231.004.007 Dunwell D/PASS
Yes: 24 • No: 26
Senate vote • 4/22/2025
AMD- HB0231.004.008Dunwell D/PASS
Yes: 24 • No: 26
Senate vote • 4/18/2025
ReconsAction -Fern
Yes: 26 • No: 24
Senate vote • 4/17/2025
Indefinitely Postpone -McGillvray
Yes: 26 • No: 21
Senate vote • 4/17/2025
Do Concur
Yes: 25 • No: 25
House vote • 2/27/2025
Do Pass
Yes: 68 • No: 30
House vote • 2/26/2025
Do Pass
Yes: 72 • No: 27
House vote • 2/26/2025
AMD-HB0231.003.003 Falk DO PASS
Yes: 40 • No: 60
House vote • 2/26/2025
AMD-HB0231.003.002 Falk DO PASS
Yes: 30 • No: 70
House vote • 2/26/2025
AMD-HB0231.003.001 Falk DO PASS
Yes: 35 • No: 65
House vote • 2/6/2025
Do Pass
Yes: 75 • No: 25
House vote • 2/6/2025
AMD-HB0231.002.003 Gillette DO PASS
Yes: 16 • No: 84
Actions Timeline
Chapter Number Assigned
5/19/2025HouseSigned by Governor
5/13/2025HouseTransmitted to Governor
5/7/2025HouseSigned by President
5/7/2025SenateSigned by Speaker
5/6/2025HouseReturned from Enrolling
5/2/2025HouseSent to Enrolling
4/30/2025House3rd Reading Conference Committee Report
4/30/2025Senate3rd Reading Conference Committee Report
4/30/2025House2nd Reading Conference Committee Report
4/30/2025House2nd Reading Conference Committee Report
4/29/2025SenateConference Committee Appointed
4/29/2025SenateHearing
4/28/2025HouseConference Committee Appointed
4/28/2025House2nd Reading Senate Amendments
4/28/2025HouseReturned to House with Amendments
4/25/2025Senate3rd Reading
4/25/2025SenateReconsidered Previous Action
4/24/2025Senate3rd Reading
4/24/2025Senate2nd Reading
4/22/2025Senate2nd Reading Motion to Amend
4/22/2025Senate2nd Reading Motion to Amend
4/22/2025Senate2nd Reading Motion to Amend
4/22/2025Senate2nd Reading Motion to Amend
4/22/2025SenateReconsidered Previous Action
4/18/2025Senate
Bill Text
As Amended (Version 6)
5/1/2025
Enrolled
5/1/2025
As Amended (Version 5)
4/25/2025
As Amended (Version 4)
4/16/2025
As Amended (Version 3)
2/21/2025
As Amended (Version 2)
1/31/2025
Introduced
1/16/2025
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