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MontanaHB 84669th Legislature, Regular Session (2025)House

Revising property taxation for certain local government subdivisions

Sponsored By: Ken Walsh (Republican)

Signed by Governor

Local GovernmentTaxation--PropertyTaxationRevenue, LocalEducation - School FinanceEducation - K-12

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

New levy to fund isolated students

The law creates a reconciliation payment for isolated pupils. A district of attendance must file a $100 petition by June 1 and is eligible only when the home district is contiguous, has at least $100,000,000 in certified taxable value, and its taxable value per student is more than 1.5× the attendance district’s. The county superintendent rules within 30 days, and either district may appeal to district court. By May 1, OPI reports each home district’s mill value per-ANB, and by the first Tuesday in September the attendance district must send its budgeted mills. The home district must levy property taxes to raise payment = approved isolated‑pupil FTE × OPI mill value per‑ANB × attendance‑district mills. The home district deposits the levy in its tuition fund and pays at least half by December 31 and the rest by June 15; the receiving district deposits the money in its flexibility or other budgeted funds.

School boundary changes: three-year tax split

After territory is transferred, for three years the certified taxable value of that land is split 50/50 between the old and new districts. Each district sets its operational mills using its share, and county commissioners levy one‑half of each district’s mills on the full taxable value inside the transferred area. If the receiving district had been getting a reconciliation payment from the other district, it must raise and pay back an equal amount for three years, paying at least half by December 31 and the rest by June 15 each year. The county superintendent must notify the Department of Revenue when a transfer is approved. A new petition to transfer the same territory cannot be filed for one full fiscal year, unless county superintendents agree in writing to a different schedule. In transfer hearings, county superintendents must also consider whether isolated pupils live in the area.

Parent councils for isolated students

Any district where isolated pupils are 5% or more of budgeted ANB must set up an advisory council. The school board appoints members after public notice, and most members must be parents or legal guardians of isolated pupils. The council can ask to be placed on regular board meeting agendas.

Sponsors & Cosponsors

Sponsor

  • Ken Walsh

    Republican • House

Cosponsors

  • Llew Jones

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 462 • No: 31

House vote • 4/25/2025

Do Concur

Yes: 70 • No: 30

House vote • 4/24/2025

Do Concur

Yes: 99 • No: 1

Senate vote • 4/18/2025

Do Concur

Yes: 50 • No: 0

Senate vote • 4/17/2025

Do Concur

Yes: 49 • No: 0

House vote • 4/2/2025

Do Pass

Yes: 94 • No: 0

House vote • 4/1/2025

Do Pass

Yes: 100 • 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 Senate Amendments

    4/25/2025House

  9. 2nd Reading Senate Amendments

    4/24/2025House

  10. Returned to House with Amendments

    4/22/2025Senate

  11. 3rd Reading

    4/18/2025Senate

  12. 2nd Reading

    4/17/2025Senate

  13. Committee Report

    4/16/2025Senate

  14. Committee Executive Action

    4/15/2025Senate

  15. Hearing

    4/14/2025Senate

  16. Referred to Committee

    4/10/2025Senate

  17. 1st Reading

    4/3/2025Senate

  18. Referred to Committee

    4/3/2025Senate

  19. Transmitted to Senate

    4/3/2025House

  20. 3rd Reading

    4/2/2025House

  21. 2nd Reading

    4/1/2025House

  22. Committee Report

    3/29/2025House

  23. Committee Executive Action

    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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