All Roll Calls
Yes: 200 • No: 93
MontanaSB 11769th Legislature, Regular Session (2025)SenateWALLET
Revise government entity limitations on property tax increases
Sponsored By: Daniel Zolnikov (Republican)
Became Law
State FinanceTaxation (Generally)Local FinanceRevenue, LocalTaxation--PropertyRevenue, StateSchool Finance
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
More new value counts in mill rates
Starting in 2026, the state changes how new property value is counted when setting local mill levies. If your city or county creates the reserve account and makes the required 10% deposit, it may include 50% of newly taxable value from classes other than 1, 2, and 4. If it does not, it may include 40% of that value. Some abated projects still count at 100% during construction. This can change local mill rates and your property tax bill.
Local reserve fund after big taxpayer loss
Cities and counties may create a large taxpayer reserve account starting with the 2026 tax year. If they do, they must deposit 10% of revenue from newly taxable property outside class four each year. They may first use part of that revenue to pay any required state assessment‑technology charge. Money stays in the account and cannot be spent until a “large taxpayer” (top 20% by taxable value) shuts down or its non‑class‑four taxable value drops by at least 25%. After that trigger, the funds must go to things like paying capital project bonds, lowering affected mill levies for up to 10 years, bringing in new industry, cash job incentives, or infrastructure tied to new development or housing. Except for the 10‑year levy relief, the account balance does not count as cash to cut mills. The account earns interest, which is added and can also be used after a trigger.
Changes start with 2026 tax year
The law applies to property tax years that begin on or after January 1, 2026. Cities and counties follow the new account and levy rules starting with the 2026 tax year.
Sponsors & Cosponsors
Sponsor
Daniel Zolnikov
Republican • Senate
Cosponsors
Katie Zolnikov
Republican • House
Roll Call Votes
Senate vote • 4/16/2025
Do Concur
Yes: 67 • No: 31
Senate vote • 4/15/2025
Do Concur
Yes: 56 • No: 41
Senate vote • 3/28/2025
Do Pass
Yes: 39 • No: 9
Senate vote • 3/27/2025
Do Pass
Yes: 38 • No: 12
Actions Timeline
Chapter Number Assigned
5/13/2025SenateSigned by Governor
5/8/2025SenateTransmitted to Governor
4/30/2025SenateSigned by Speaker
4/29/2025HouseSigned by President
4/23/2025SenateReturned from Enrolling
4/18/2025SenateSent to Enrolling
4/16/2025Senate3rd Reading Concurred
4/16/2025House2nd Reading Concurred
4/15/2025HouseCommittee Report--Bill Concurred
4/9/2025HouseCommittee Executive Action--Bill Concurred
4/9/2025HouseHearing
4/3/2025HouseRevised Fiscal Note Printed
4/1/2025SenateRevised Fiscal Note Signed
3/31/2025SenateRevised Fiscal Note Received
3/31/2025SenateFirst Reading
3/29/2025HouseReferred to Committee
3/29/2025HouseTransmitted to House
3/28/2025Senate3rd Reading Passed
3/28/2025Senate2nd Reading Passed
3/27/2025SenateCommittee Report--Bill Passed as Amended
3/21/2025SenateCommittee Executive Action--Bill Passed as Amended
3/21/2025SenateFiscal Note Printed
1/27/2025SenateFiscal Note Signed
1/24/2025SenateFiscal Note Received
1/24/2025Senate
Bill Text
Enrolled
4/17/2025
As Amended (Version 2)
3/21/2025
Introduced
1/9/2025