All Roll Calls
Yes: 677 • No: 467
MontanaSB 54269th Legislature, Regular Session (2025)SenateWALLET
Generally revise property tax laws
Sponsored By: Wylie Galt (Republican)
Signed by Governor
TaxationTaxation--PropertyRevenue, LocalRevenue, State
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Bill Overview
Analyzed Economic Effects
16 provisions identified: 8 benefits, 0 costs, 8 mixed.
New residential tax rates and classifications
Residential class four property uses a graduated schedule: first $50,000 at 0.76%; $50,001–$500,000 at 0.95%; $500,001–$750,000 at 1.15%; $750,001–$1,000,000 at 1.20%; $1,000,001–$1,500,000 at 1.40%; $1,500,001–$2,000,000 at 1.89%; and amounts over $2,000,000 at 2.20%. Some listed residential property is taxed at 1.9% of market value unless a reduced rate applies. Property in subsection (1)(c) that does not qualify for homestead or rental reduced rates is taxed at 1.35% of market value. Also, one acre under a home on certain farm or forest land is now class four and is valued at market value.
New commercial and industrial tax rates
For some commercial and industrial property, tax is 1.4% on the first $400,000 of market value and 1.89% on value above $400,000. Other listed commercial and industrial property uses the department’s median: 1.5% if market value is less than 6× the median, and 1.9% if at or above 6× the median.
Lower tax rate for your main home
Beginning in tax year 2026, your principal residence can get a lower homestead tax rate. If you received the 2024 rebate, you qualify automatically unless you sell the home, stop living there, or claim a different home. Others must apply each year between Dec 1 and Mar 1 for that tax year. Entity-owned homes generally do not qualify, except certain trusts. The rate uses tiers tied to the state median home value: 0.76% at or below the median; 0.9% over the median but under 2×; 1.1% from 2× to under 4×; and 1.9% at 4× or more. The Department of Revenue sets the medians and rounds them to the nearest $1,000. If you were eligible but did not apply, you can file by May 31 of the next year to get a one‑year refund equal to the extra tax you paid.
Lower taxes for long‑term rentals
Starting with tax year 2026, qualifying long‑term rental homes can get a lower tax rate. Apply each year Dec 1–Mar 1; the department mails notices by Oct 30, 2025. A property qualifies if it is rented for periods of 28 days or more totaling at least 7 months in the year, or is vacant up to 5 months for documented repairs. Owners must be current on property taxes. Qualifying rental multifamily units are taxed at 1.1% of market value. For multifamily properties worth over $2,000,000, the maximum rate is 1.89% if average rents are at or below 150% of the county fair market rent; owners must certify lease rates. The law uses HUD’s published fair market rents for these rent tests. Beginning in 2028, 20% of long‑term rentals must reapply each year.
State backfills some local tax losses
The state reimburses eligible local taxing entities for revenue lost from certain fixed mill levies after rate changes. For FY2026, the payment equals the difference between FY2026 and FY2025 revenue from those levies. In later years, the state pays the gap between actual revenue and what the FY2025 levy would raise using FY2026 taxable values. Payments last up to four years, include related fines or judgments, and go out with entitlement‑share payments.
Appeal rights and penalties for reduced rates
If your homestead or rental reduced‑rate application is denied, you can ask the department for an informal review within 30 days, then appeal to the county tax appeal board within 30 days, and then to the state board. The county board can change assessments and decide eligibility, but you must file a written application on time and only once per valuation cycle. Before granting relief, the board questions you under oath; you must attend the hearing unless the board and the department grant a written waiver. If the county board fails to hear a timely application, it is granted automatically the day after the board’s final meeting, with limited exceptions. Filing a false or improper application can trigger revised assessments for up to 10 years and a civil penalty equal to three times the base shortfall plus interest; criminal charges may also apply.
More land taxed, half‑rate for golf
If you own commercial buildings on certain farm or forest land, the land under and around the buildings is now class four and is valued at market value, which can raise taxes. Golf course property listed in the law is taxed at one‑half of the usual class four rate.
Limits on local mill levies and payments
Local governments with charter mill‑levy limits and certain voter‑approved mill limits must set their fiscal year 2026 levies to raise the same property‑tax revenue as in fiscal year 2025, and then keep the same number of mills after 2026. Also, entitlement‑share growth does not apply to the part of the pool that comes from reimbursements for reduced fixed mill levies.
Lower taxable rate for farm and ag land
The law lowers the taxable percentage for class three property from 2.16% to 2.05%. This covers agricultural land and some 20–159.99 acre parcels under one owner. Your tax bill uses this lower rate on the land’s productive value. This reduces yearly property taxes for many farm and rural landowners.
One-time $400 rebate for 2024 homeowners
The law gives you one rebate for your main home for tax year 2024. The rebate is $400 or your 2024 Montana property tax paid, whichever is less. File online Aug 15–Oct 1, 2025, or mail a form postmarked by Oct 1, 2025. The department may extend the deadline for good cause, but stops accepting claims after Dec 1, 2025. Only one rebate per taxpayer. Entity-owned homes generally do not qualify, except some trustee filings. The department can offset your rebate to pay state debts. If a false claim is paid, you must repay it plus a penalty equal to 300% of the rebate and 12% yearly interest, and you can face criminal charges. You subtract any rebate you receive from your Montana taxable income. This rebate program and its related sections end June 30, 2026.
Clearer tax bills and lien warnings
Appraisal notices must list all property tax help programs, including the new homestead and rental reduced rates. County tax bills must name help programs, including the elderly residential property tax credit. Counties may post the year‑to‑year mill‑levy comparison on the treasurer’s website instead of printing that item. If you are delinquent, the county must mail a tax‑lien warning at least two weeks before attaching a lien, tell you a lien can be assigned to a third party, and list tax help programs.
No extra bill for tiny changes
If a department‑initiated assessment change would add $5 or less to your tax, you owe nothing extra and the county does not issue a new bill.
Your appraisal counts in tax appeals
In a property tax appeal, the county board must consider your independent appraisal. It must meet state appraisal standards and be done within 6 months of the valuation date. If the board does not use it, the board must tell you why. This helps you argue for a lower assessed value.
County tax boards: pay and space
County tax appeal board members are paid $45 for 4 hours or less, or $90 for over 4 hours. Travel and pay are covered only when the board hears appeals or attends state‑called meetings, and are paid from the state tax appeal board appropriation. Counties must provide office space and equipment for these boards. Other incidental costs come from the state board’s appropriation.
State sets rules and value medians
The Department of Revenue writes the rules to run the new rebate and reduced‑rate programs. The department also calculates the median residential and the median commercial and industrial values every two years. These medians set tier breakpoints and help decide who qualifies for reduced tax rates.
When these property tax changes start and end
Most changes apply to property‑tax years that begin after Dec 31, 2024. Sections 5–10, 15–21, and 24 take effect Jan 1, 2026 and apply to tax years that begin after Dec 31, 2025. Sections 11 and 12 turn on only if a court finally finds section 4 invalid, and they end when reimbursements under section 11 are completed. Section 14 ends Dec 31, 2025. Sections 1–3 and 22, and the listing of section 3 as a statutory appropriation, end June 30, 2026. The law also adds section 3 and section 24 to the list of statutes with statutory appropriations. If both this act and House Bill 528 are approved, HB 528 is void.
Sponsors & Cosponsors
Sponsor
Wylie Galt
Republican • Senate
Cosponsors
Mike Cuffe
Republican • Senate
Roll Call Votes
Senate vote • 4/30/2025
Do Adopt
Yes: 28 • No: 22
Senate vote • 4/29/2025
Do Adopt
Yes: 29 • No: 21
Senate vote • 4/28/2025
Do Not Concur
Yes: 48 • No: 1
House vote • 4/24/2025
Do Concur
Yes: 72 • No: 27
House vote • 4/22/2025
AMD-SB0542.002.007 Hinkle J DO PASS
Yes: 17 • No: 83
House vote • 4/22/2025
Cloture-Sprunger
Yes: 95 • No: 4
House vote • 4/22/2025
AMD-SB0542.002.004 Zolnikov DO PASS
Yes: 99 • No: 0
House vote • 4/22/2025
Do Concur As Amended
Yes: 80 • No: 20
House vote • 4/22/2025
AMD-SB0542.002.006 Zolnikov DO PASS
Yes: 27 • No: 73
House vote • 4/22/2025
AMD-SB0542.002.005 Gillette DO PASS
Yes: 29 • No: 71
House vote • 4/22/2025
AMD-SB0542.002.002 Caferro DO PASS
Yes: 33 • No: 67
House vote • 4/22/2025
AMD-SB0542.002.003 Running Wolf DO PASS
Yes: 41 • No: 59
Senate vote • 4/5/2025
Do Pass
Yes: 36 • No: 12
Senate vote • 4/3/2025
Do Pass
Yes: 43 • No: 7
Actions Timeline
Chapter Number Assigned
5/19/2025SenateSigned by Governor
5/13/2025SenateTransmitted to Governor
5/6/2025SenateSigned by Speaker
5/6/2025HouseSigned by President
5/6/2025SenateReturned from Enrolling
5/2/2025SenateSent to Enrolling
5/1/2025Senate3rd Reading Conference Committee Report
4/30/2025Senate2nd Reading Conference Committee Report
4/29/2025SenateConference Committee Appointed
4/29/2025SenateHearing
4/29/2025SenateConference Committee Appointed
4/28/2025House2nd Reading House Amendments
4/28/2025SenateReturned to Senate with Amendments
4/24/2025House3rd Reading
4/24/2025House2nd Reading
4/22/2025House2nd Reading Motion to Amend
4/22/2025House2nd Reading Motion to Amend
4/22/2025House2nd Reading Motion to Amend
4/22/2025House2nd Reading Motion to Amend
4/22/2025House2nd Reading Motion to Amend
4/22/2025House2nd Reading Motion to Amend
4/22/2025HouseRevised Fiscal Note Requested
4/18/2025SenateCommittee Report
4/18/2025HouseCommittee Executive Action
4/18/2025House
Bill Text
Enrolled
5/1/2025
As Amended (Version 3)
4/22/2025
As Amended (Version 2)
4/18/2025
Introduced
3/25/2025