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MontanaSB 11769th Legislature, Regular Session (2025)SenateWALLET

Revise government entity limitations on property tax increases

Sponsored By: Daniel Zolnikov (Republican)

Signed by Governor

State FinanceTaxationLocal FinanceRevenue, LocalTaxation--PropertyRevenue, StateEducation - School Finance

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Bill Overview

Analyzed Economic Effects

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

New 2026 rules for property tax mills

Beginning January 1, 2026, local governments change how they set property tax mills. They may add the three‑year average CPI‑U to the mill calculation, capped at 4%. Only 25% of class four newly taxable value counts in the base. Certain abated class eight property and approved new or historic projects count 100% during construction. If the local government creates the new reserve and makes the 10% deposit, 50% of other newly taxable value counts; otherwise 40% counts. These rules can raise or lower the mills and your bill, depending on your area and property type.

Local reserve for big taxpayer shocks

Starting January 1, 2026, cities and counties can create a Large Taxpayer Reserve. Each year they must deposit 10% of revenue from newly taxable property in classes other than class four. They can use part of the deposit to cover required payments to the state for assessment technology. Money stays in the account until a top‑20% taxpayer permanently closes or its taxable value (non‑class four) drops by 25% or more. Then the money must pay bonds or pre‑closure costs, and it can lower mills for up to 10 years in the affected area, attract new industry, fund job incentives, or build infrastructure tied to new development or housing. The reserve is not counted as cash for cutting mills, except for those allowed post‑trigger cuts. Funds are invested by law, and interest stays in the account for these allowed uses if not needed to pay the state.

Sponsors & Cosponsors

Sponsor

  • Daniel Zolnikov

    Republican • Senate

Cosponsors

  • Katie Zolnikov

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 200 • No: 96

House vote • 4/16/2025

Do Concur

Yes: 67 • No: 31

House vote • 4/15/2025

Do Concur

Yes: 56 • No: 44

Senate vote • 3/28/2025

Do Pass

Yes: 39 • No: 9

Senate vote • 3/27/2025

Do Pass

Yes: 38 • No: 12

Actions Timeline

  1. Chapter Number Assigned

    5/13/2025Senate

  2. Signed by Governor

    5/8/2025Senate

  3. Transmitted to Governor

    4/30/2025Senate

  4. Signed by Speaker

    4/29/2025House

  5. Signed by President

    4/23/2025Senate

  6. Returned from Enrolling

    4/18/2025Senate

  7. Sent to Enrolling

    4/16/2025Senate

  8. 3rd Reading

    4/16/2025House

  9. 2nd Reading

    4/15/2025House

  10. Committee Report

    4/9/2025House

  11. Committee Executive Action

    4/9/2025House

  12. Hearing

    4/3/2025House

  13. Revised Fiscal Note Printed

    4/1/2025Senate

  14. Revised Fiscal Note Signed

    3/31/2025Senate

  15. Revised Fiscal Note Received

    3/31/2025Senate

  16. 1st Reading

    3/29/2025House

  17. Referred to Committee

    3/29/2025House

  18. Transmitted to House

    3/28/2025Senate

  19. 3rd Reading

    3/28/2025Senate

  20. 2nd Reading

    3/27/2025Senate

  21. Committee Report

    3/21/2025Senate

  22. Committee Executive Action

    3/21/2025Senate

  23. Fiscal Note Printed

    1/27/2025Senate

  24. Fiscal Note Signed

    1/24/2025Senate

  25. Fiscal Note Received

    1/24/2025Senate

Bill Text

  • Enrolled

    4/17/2025

    PDF

  • As Amended (Version 2)

    3/21/2025

    PDF

  • Introduced

    1/9/2025

    PDF

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