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MontanaHB 86369th Legislature, Regular Session (2025)HouseWALLET

Generally revise state finance laws

Sponsored By: Llew Jones (Republican)

Signed by Governor

State FinanceAppropriations

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 6 benefits, 0 costs, 3 mixed.

Property tax changes for homes and businesses

Beginning June 30, 2025, the residential class four tax rate drops from 1.35% to 0.76% of market value. 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, and certain golf courses pay half the commercial rate. When setting the residential rate, the law requires at least $452 million from the named statewide school mill levies. That floor can limit how far rates can fall.

More funding for court fitness evaluations

The state provides a one‑time $7.35 million in the 2025–2027 biennium. The money funds community‑based, court‑ordered forensic fitness evaluations. This expands evaluation access and capacity.

Market wage raises for state workers

The state studies market pay and can give agencies money to raise executive‑branch wages where pay lags the market. The biennium starting July 1, 2025 includes $25.8 million for these raises. The budget director must approve transfers. Approved raises increase base pay and stay in agency base budgets.

Lodging tax money to tourism and heritage

Starting July 1, 2027, 63% of lodging (accommodations) tax receipts go to the Department of Commerce for tourism and related programs. Each year, $400,000 from these taxes goes to the Montana Heritage Preservation and Development account. For the 2025–2027 biennium, $250,000 per year goes to the Montana Heritage Commission for Reeder’s Alley and Grace Methodist Church projects, through June 30, 2027. The Heritage Commission must report every six months on how it spends these funds.

Triggers for 2027 special session funding

The law encourages a 2027‑biennium special session if big federal revenue cuts or a U.S. recession hit. Triggers include losses over $500 million or $300 million as listed, or a recession before September 1, 2026. If a qualifying special session is held, $280,000 is available to the Legislative Services Division to run it.

Interest relief for 2024 tax underpayment

If you underpaid 2024 Montana estimated taxes, the Department of Revenue can waive the interest. You must file your 2024 return on time and pay any remaining tax when you file. This waiver power applies only to 2024 underpayments and ends January 1, 2026.

Study of state-run health facilities

The budget office studies principal departments and state‑owned health and long‑term care facilities. The study reviews operations, staffing, outcomes, contracting, and compliance. It must finish by September 1, 2026. The law provides $350,000 in the 2025–2027 biennium to complete this work.

Trade funding for Montana-Ireland work

The Department of Commerce gets $250,000 in the 2025–2027 biennium to carry out Montana‑Ireland trade and development work under SB 320. Lawmakers state intent to include this funding in the base budget for the next biennium starting July 1, 2027.

How the state counts general revenue

Starting June 30, 2025, “general revenue appropriations” include money from the general fund and the school equalization and property tax reduction account. This is a budgeting and accounting change. It affects how the state classifies and tracks funds, not your tax bill.

Sponsors & Cosponsors

Sponsor

  • Llew Jones

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 586 • No: 409

House vote • 4/30/2025

Do Concur

Yes: 55 • No: 45

House vote • 4/30/2025

Do Concur

Yes: 59 • No: 41

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: 62

Senate vote • 4/25/2025

Do Concur

Yes: 28 • No: 21

Senate vote • 4/23/2025

Rerefer to Tax-Usher

Yes: 21 • No: 29

Senate vote • 4/23/2025

AMD-HB0863.001.012 Mr. President D/PASS

Yes: 18 • No: 32

Senate vote • 4/23/2025

AMD-HB0863.001.017 Kassmier D/PASS

Yes: 50 • No: 0

Senate vote • 4/23/2025

AMD-HB0863.001.023 Flowers D/PASS

Yes: 29 • No: 21

Senate vote • 4/23/2025

Do Concur As Amended

Yes: 28 • No: 22

Senate vote • 4/23/2025

AMD-HB0863.001.019 Esp D/PASS

Yes: 19 • No: 31

Senate 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: 79 • 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 Senate Amendments

    4/30/2025House

  9. 2nd Reading Senate Amendments

    4/30/2025House

  10. Reconsidered Previous Action

    4/29/2025House

  11. 2nd Reading Senate Amendments

    4/29/2025House

  12. Returned to House with Amendments

    4/25/2025Senate

  13. 3rd Reading

    4/25/2025Senate

  14. Motion

    4/23/2025Senate

  15. 2nd Reading

    4/23/2025Senate

  16. 2nd Reading Motion to Amend

    4/23/2025Senate

  17. 2nd Reading Motion to Amend

    4/23/2025Senate

  18. 2nd Reading Motion to Amend

    4/23/2025Senate

  19. 2nd Reading Motion to Amend

    4/23/2025Senate

  20. 2nd Reading Pass Consideration

    4/18/2025Senate

  21. Take from Committee; Place on 2nd Reading

    4/17/2025Senate

  22. Hearing

    4/2/2025Senate

  23. 1st Reading

    4/1/2025Senate

  24. Referred to Committee

    4/1/2025Senate

  25. Transmitted to Senate

    3/31/2025House

Bill Text

  • Enrolled

    4/30/2025

    PDF

  • As Amended (Version 2)

    4/23/2025

    PDF

  • Introduced

    3/25/2025

    PDF

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