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MontanaHB 84669th Legislature, Regular Session (2025)HouseWALLET

Revising property taxation for certain local government subdivisions

Sponsored By: Ken Walsh (Republican)

Became Law

Local GovernmentTaxation--PropertyTaxation (Generally)Revenue, LocalSchool FinanceSchools and Education

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

New school levy for isolated pupils

Beginning July 1, 2025, districts that educate isolated pupils get a reconciliation payment when the home district is next door, has at least $100 million in taxable value, and its taxable value per student is more than 1.5 times the attendance district’s. An isolated pupil is one who cannot reach onsite services in the home district within 60 minutes by road. The attendance district petitions by June 1 with a $100 fee; the county superintendent verifies within 30 days, and either district can appeal to district court. OPI reports the mill value per student by May 1, and the attendance district tells its adopted mills by the first Tuesday in September. The payment equals approved prior‑year isolated‑pupil FTE times the OPI mill value per student times those mills. The home district levies on its full tax base to raise the money, deposits it in the tuition fund, and pays at least half by December 31 and the rest by June 15; the attendance district deposits receipts in its flexibility or other budgeted fund.

Three-year taxes after boundary changes

Beginning July 1, 2025, for three years after a territory transfer, the transferred property’s value is split for certification, and county commissioners levy one‑half of each district’s operational mills on the property’s full value. If the receiving district previously got a reconciliation payment from the sending district, it must levy for three years the same dollar amount as its most recent payment, deposit it in the tuition fund, and pay it back to the sending district, with at least half due by December 31 and the rest by June 15 each year. The county superintendent notifies the Department of Revenue when a transfer is approved.

Parent council for isolated students

Beginning July 1, 2025, a district where isolated pupils are 5% or more of its budgeted students must set up an advisory council. The board appoints members after public notice, and most members are parents or guardians of isolated pupils. At the council’s request, the board’s regular meeting agenda may include a report from the council.

New rules for moving school territory

Beginning July 1, 2025, a petition to move territory to or from a K–12 district is not presented to a county superintendent unless both school boards and the county superintendents agree in writing. After a petition is filed, no new petition for the same area is allowed for one full fiscal year unless the superintendents agree in writing. At hearings, petitioners present evidence first, and county superintendents must consider whether isolated pupils live in the area.

Sponsors & Cosponsors

Sponsor

  • Ken Walsh

    Republican • House

Cosponsors

  • Llew Jones

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 459 • No: 31

House vote • 4/25/2025

Do Concur

Yes: 70 • No: 30

House vote • 4/24/2025

Do Concur

Yes: 99 • No: 1

House vote • 4/18/2025

Do Concur

Yes: 50 • No: 0

House vote • 4/17/2025

Do Concur

Yes: 47 • No: 0

House vote • 4/2/2025

Do Pass

Yes: 94 • No: 0

House vote • 4/1/2025

Do Pass

Yes: 99 • No: 0

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

    5/6/2025Senate

  5. Signed by Speaker

    5/2/2025House

  6. Returned from Enrolling

    4/29/2025House

  7. Sent to Enrolling

    4/28/2025House

  8. 3rd Reading Passed as Amended by Senate

    4/25/2025House

  9. 2nd Reading Senate Amendments Concurred

    4/24/2025House

  10. Returned to House with Amendments

    4/22/2025Senate

  11. 3rd Reading Concurred

    4/18/2025Senate

  12. 2nd Reading Concurred

    4/17/2025Senate

  13. Committee Report--Bill Concurred as Amended

    4/16/2025Senate

  14. Committee Executive Action--Bill Concurred as Amended

    4/15/2025Senate

  15. Hearing

    4/14/2025Senate

  16. Referred to Committee

    4/10/2025Senate

  17. First Reading

    4/3/2025Senate

  18. Referred to Committee

    4/3/2025Senate

  19. Transmitted to Senate

    4/3/2025House

  20. 3rd Reading Passed

    4/2/2025House

  21. 2nd Reading Passed

    4/1/2025House

  22. Committee Report--Bill Passed

    3/29/2025House

  23. Committee Executive Action--Bill Passed

    3/28/2025House

  24. Fiscal Note Printed

    3/27/2025House

  25. Fiscal Note Signed

    3/26/2025House

Bill Text

  • Enrolled

    4/28/2025

    PDF

  • As Amended (Version 2)

    4/16/2025

    PDF

  • Introduced

    3/19/2025

    PDF

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