MontanaHB 86369th Legislature, Regular Session (2025)HouseWALLET

Generally revise state finance laws

Sponsored By: Llew Jones (Republican)

Became Law

State FinanceAppropriations

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

10 provisions identified: 8 benefits, 1 costs, 1 mixed.

Estimated tax payments required for many

Most individuals who owe Montana income tax must make estimated payments during the year. You must pay at least the lesser of 90% of your current‑year tax or 100% of last year’s tax if you filed a 12‑month return. You do not have to pay if withholding plus estimates is under $500, if you are a farmer or rancher, if you retired after age 62 or became disabled (also the next year), or if a casualty, disaster, or other good cause led to underpayment. Payments are generally due in four installments, with an annualized option.

Property tax rate changes for homes

Residential class four property is taxed at 0.76% of market value, but only if House Bill 231 also becomes law. For single‑family homes, the value over $1,500,000 is taxed at 1.4 times that rate. Commercial property is taxed at 1.4 times the residential rate. The residential rate must also bring in at least $452 million in mill levy revenue, which can affect the final rate.

Funding for community forensic evaluations

The state provides a one‑time $7.35 million for the 2025–27 biennium. The money funds community‑based, court‑ordered forensic fitness evaluations through the health department. This expands access to evaluations outside state facilities.

More money for state worker pay

The state provides $25.8 million in the 2025–27 biennium to raise pay for executive branch employees. OBPP sends the money to agencies, and those raises become part of base budgets. OBPP also studies market pay and can allocate funds to fix pay gaps. The governor’s budget director must approve each transfer, and all increases become part of agencies’ base budgets.

Property tax rebates tied to HB 231

The state sets aside $90 million for property tax rebates for the two‑year period starting July 1, 2025. The money is available only if House Bill 231 and this act both become law. You receive a rebate only if you qualify under HB 231’s rules.

Agency efficiency study and budget rules

OBPP must study benefits, costs, and efficiency across principal departments and certain state‑owned health care facilities. The study must finish by September 1, 2026, and any findings go to the Legislative Finance Committee. The law provides $350,000 from the general fund for this work in the 2025–27 biennium. Beginning July 1, 2028, “general revenue appropriations” means money from the general fund and the school equalization and property tax reduction account.

Plan for budget shocks and recessions

During the 2027 biennium, the governor and legislators are encouraged to call a special session if big federal changes or a U.S. recession cut Montana revenues and OBPP’s actions are not enough. Triggers include a federal revenue loss over $500 million for the biennium, cancellation of more than $300 million in federal spending, a $300 million drop in state general fund revenue, or an NBER‑declared recession before September 1, 2026. If a qualifying special session convenes, $280,000 from the general fund is provided to the Legislative Services Division at that time.

Lodging tax funds heritage projects

Starting July 1, 2025, $250,000 each year of the biennium goes to the Montana Heritage Commission. The money funds projects at Reeder’s Alley in Helena and Grace Methodist Church in Virginia City.

New rules for state investment board

The Board of Investments is placed in the Department of Commerce and can hire a chief investment officer, an executive director, and six professional staff. The board now has nine governor‑appointed members plus one member each from the public employees’ and teachers’ retirement boards. Two nonvoting legislative liaisons, from different parties, may attend meetings and get paid by the legislative council. The board is designated quasi‑judicial, uses a restricted enterprise fund, and must present its budget at least every two years to key legislative committees and report during sessions when asked.

Funding for Montana-Ireland trade work

The Department of Commerce gets $250,000 for the 2025–27 biennium to carry out Montana‑Ireland trade and development work under Senate Bill 320. Lawmakers intend to add this funding to the department’s base budget in the 2027–29 biennium.

Sponsors & Cosponsors

Sponsor

  • Llew Jones

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 582 • No: 406

House vote 4/30/2025

Do Concur

Yes: 59 • No: 41

House vote 4/30/2025

Do Concur

Yes: 55 • No: 45

House vote 4/29/2025

ReconsAction and place on the 85th day - Howell

Yes: 58 • No: 39

House vote 4/29/2025

Do Concur

Yes: 38 • No: 60

House vote 4/25/2025

Do Concur

Yes: 28 • No: 21

House vote 4/23/2025

Do Concur As Amended

Yes: 28 • No: 22

House vote 4/23/2025

AMD-HB0863.001.017 Kassmier D/PASS

Yes: 50 • No: 0

House vote 4/23/2025

Rerefer to Tax-Usher

Yes: 21 • No: 29

House vote 4/23/2025

AMD-HB0863.001.012 Mr. President D/PASS

Yes: 17 • No: 32

House vote 4/23/2025

AMD-HB0863.001.023 Flowers D/PASS

Yes: 29 • No: 21

House vote 4/23/2025

AMD-HB0863.001.019 Esp D/PASS

Yes: 19 • No: 30

House vote 4/17/2025

Take HB 863 from Comm-Kassmier

Yes: 26 • No: 24

House vote 3/31/2025

Do Pass

Yes: 78 • No: 21

House vote 3/29/2025

Do Pass

Yes: 76 • No: 21

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

    5/5/2025House
  6. Returned from Enrolling

    5/1/2025House
  7. Sent to Enrolling

    4/30/2025House
  8. 3rd Reading Passed as Amended by Senate

    4/30/2025House
  9. 2nd Reading Senate Amendments Concurred

    4/30/2025House
  10. Reconsidered Previous Action; Placed on 2nd Reading

    4/29/2025House
  11. 2nd Reading Senate Amendments Not Concurred

    4/29/2025House
  12. Returned to House with Amendments

    4/25/2025Senate
  13. 3rd Reading Concurred

    4/25/2025Senate
  14. Motion Failed

    4/23/2025Senate
  15. 2nd Reading Concurred as Amended

    4/23/2025Senate
  16. 2nd Reading Motion to Amend Carried

    4/23/2025Senate
  17. 2nd Reading Motion to Amend Carried

    4/23/2025Senate
  18. 2nd Reading Motion to Amend Failed

    4/23/2025Senate
  19. 2nd Reading Motion to Amend Failed

    4/23/2025Senate
  20. 2nd Reading Pass Consideration

    4/18/2025Senate
  21. Taken from Committee; Placed on 2nd Reading

    4/17/2025Senate
  22. Hearing

    4/2/2025Senate
  23. First Reading

    4/1/2025Senate
  24. Referred to Committee

    4/1/2025Senate
  25. Transmitted to Senate

    3/31/2025House

Bill Text

  • Enrolled

    4/30/2025

  • As Amended (Version 2)

    4/23/2025

  • Introduced

    3/25/2025

Related Bills

Back to State Legislation