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MontanaHB 23169th Legislature, Regular Session (2025)HouseWALLET

Revise property tax rates for certain property

Sponsored By: Llew Jones (Republican)

Became Law

Taxation (Generally)Revenue, LocalTaxation--PropertyRevenue, StateRule Making

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 1 costs, 2 mixed.

Harsh penalties for false claims

Filing a false reduced-rate application or 2024 rebate claim carries steep penalties. The department can redo past tax bills for up to 10 years and charge three times the unpaid amount plus interest for false applications, even if you no longer own the property. For a false paid rebate, you must repay it, pay a 300% penalty, and 12% yearly interest until paid. Criminal charges and collection actions can also apply.

Lower tax rate for your home

Beginning with tax year 2026, you can apply for a lower homestead tax rate for your principal residence. If you got the 2024 rebate, you qualify automatically unless you sold the home, moved, or claimed another home. Apply on the Department of Revenue form between Dec 1 and Mar 1. The lower rate ends if you sell the home or stop living there. A trustee may apply for a revocable trust home, and homes on fee land inside an Indian reservation are eligible without applying.

Lower taxes for long-term rentals

Starting in tax year 2026, owners of qualifying long-term rentals can get a reduced property tax rate. Apply each year between Dec 1 and Mar 1 on the department’s form. Beginning in 2028, about 20% of rentals must reapply each year on a rotating basis. Short vacancies up to 5 months in a year do not break eligibility. The lower rate ends if you sell, stop renting it as a dwelling, or the lease terms no longer qualify.

Funds and rules for tax relief

The law creates a property tax assistance account to fund relief. The State Treasurer must transfer $90 million to it by July 1, 2025. The Department of Revenue adopts rules and forms to run the programs. The law also gives the department $500,000 in FY2025 and $3,500,000 in FY2026 to implement the changes.

New property tax rates and timing

Starting Jan 1, 2026, qualifying homes use graduated rates: 0.76% up to the median value, 0.90% between the median and 2× median, 1.10% between 2× and 4× median, and 1.90% at 4× median or more. Qualifying rental multifamily units are taxed at 1.10%. The department recalculates the medians every two years. For 2025 only, homes are taxed at 0.76%; any value over $1,500,000 is taxed at 1.4 times that rate on the excess, and commercial property is 1.89%. Most changes apply to tax years starting after Dec 31, 2024, with key sections starting after Dec 31, 2025.

State backfills local revenue and levies

The state reimburses eligible local governments for property tax revenue they lose from the new rates. FY2026 payments match 2025 collections for certain charter-limited and voter-approved public safety levies; later years use a set formula. Payments last four years and are paid with entitlement shares. Local governments with charter mill limits must set 2026 mills to raise the same dollars as 2025 and keep those mills after 2026. Public safety levies approved before this law can switch to a fixed 2025 dollar amount or levy 2026 mills that raise the 2025 amount.

Appeal a denied reduced-rate application

If the department denies your reduced-rate application, you can ask for an informal review within 30 days. The department reviews your facts and sends a decision. If you still disagree, you can appeal to the county tax appeal board within 30 days, then to the state board.

One-time $400 home tax rebate

You can claim a one-time 2024 property tax rebate for your main home. The amount is up to $400, or your 2024 property taxes if less. File online Aug 15–Oct 1, 2025, or mail by Oct 1, 2025. Only one rebate is allowed per taxpayer. The program ends June 30, 2026.

Sponsors & Cosponsors

Sponsor

  • Llew Jones

    Republican • House

Cosponsors

  • Steve Fitzpatrick

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 889 • No: 747

House vote • 4/30/2025

Do Adopt

Yes: 60 • No: 39

House vote • 4/30/2025

Do Adopt

Yes: 69 • No: 31

House vote • 4/30/2025

Do Adopt

Yes: 28 • No: 22

House vote • 4/29/2025

Do Adopt

Yes: 28 • No: 22

House vote • 4/28/2025

Do Not Concur

Yes: 71 • No: 29

House vote • 4/25/2025

Do Concur

Yes: 25 • No: 24

House vote • 4/24/2025

Do Concur

Yes: 25 • No: 25

House vote • 4/24/2025

ReconsAction -Flowers

Yes: 28 • No: 22

House vote • 4/22/2025

AMD-HB0231.004.004 Fern D/PASS

Yes: 27 • No: 22

House vote • 4/22/2025

AMD-HB0231.004.007 Dunwell D/PASS

Yes: 24 • No: 26

House vote • 4/22/2025

AMD- HB0231.004.008Dunwell D/PASS

Yes: 24 • No: 26

House vote • 4/22/2025

Do Concur As Amended

Yes: 26 • No: 24

House vote • 4/22/2025

AMD-HB0231.004.006 Kerr-Carpenter D/PASS

Yes: 44 • No: 6

House vote • 4/18/2025

ReconsAction -Fern

Yes: 26 • No: 24

House vote • 4/17/2025

Indefinitely Postpone -McGillvray

Yes: 26 • No: 21

House vote • 4/17/2025

Do Concur

Yes: 23 • No: 24

House vote • 2/27/2025

Do Pass

Yes: 68 • No: 30

House vote • 2/26/2025

AMD-HB0231.003.002 Falk DO PASS

Yes: 30 • No: 70

House vote • 2/26/2025

AMD-HB0231.003.003 Falk DO PASS

Yes: 40 • No: 60

House vote • 2/26/2025

AMD-HB0231.003.001 Falk DO PASS

Yes: 35 • No: 65

House vote • 2/26/2025

Do Pass

Yes: 72 • No: 27

House vote • 2/6/2025

Do Pass

Yes: 74 • No: 25

House vote • 2/6/2025

AMD-HB0231.002.003 Gillette DO PASS

Yes: 16 • No: 83

Actions Timeline

  1. Chapter Number Assigned

    5/19/2025House

  2. Signed by Governor

    5/13/2025House

  3. Transmitted to Governor

    5/7/2025House

  4. Signed by President

    5/7/2025Senate

  5. Signed by Speaker

    5/6/2025House

  6. Returned from Enrolling

    5/2/2025House

  7. Sent to Enrolling

    4/30/2025House

  8. 3rd Reading Conference Committee Report Adopted

    4/30/2025Senate

  9. 3rd Reading Conference Committee Report Adopted

    4/30/2025House

  10. 2nd Reading Conference Committee Report Adopted

    4/30/2025House

  11. 2nd Reading Conference Committee Report Adopted

    4/29/2025Senate

  12. Conference Committee Report Received

    4/29/2025House

  13. Conference Committee Report Received

    4/29/2025Senate

  14. Conference Committee Appointed

    4/29/2025Senate

  15. Hearing

    4/28/2025House

  16. Conference Committee Appointed

    4/28/2025House

  17. 2nd Reading Senate Amendments Not Concurred

    4/28/2025House

  18. Returned to House with Amendments

    4/25/2025Senate

  19. 3rd Reading Concurred

    4/25/2025Senate

  20. Reconsidered Previous Action; Remains in 3rd Reading Process

    4/24/2025Senate

  21. 3rd Reading Failed

    4/24/2025Senate

  22. 2nd Reading Concurred as Amended

    4/22/2025Senate

  23. 2nd Reading Motion to Amend Failed

    4/22/2025Senate

  24. 2nd Reading Motion to Amend Failed

    4/22/2025Senate

  25. 2nd Reading Motion to Amend Carried

    4/22/2025Senate

Bill Text

  • As Amended (Version 6)

    5/1/2025

    PDF

  • Enrolled

    5/1/2025

    PDF

  • As Amended (Version 5)

    4/25/2025

    PDF

  • As Amended (Version 4)

    4/16/2025

    PDF

  • As Amended (Version 3)

    2/21/2025

    PDF

  • As Amended (Version 2)

    1/31/2025

    PDF

  • Introduced

    1/16/2025

    PDF

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