All Roll Calls
Yes: 676 • No: 467
MontanaSB 54269th Legislature, Regular Session (2025)SenateWALLET
Generally revise property tax laws
Sponsored By: Wylie Galt (Republican)
Became Law
Taxation (Generally)Taxation--PropertyRevenue, LocalRevenue, State
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.
Bill Overview
Analyzed Economic Effects
16 provisions identified: 7 benefits, 1 costs, 8 mixed.
Extra $5,500 tax break for seniors
Each taxpayer age 65 or older can subtract $5,500 from Montana taxable income. By November 1 each year, the department adjusts this amount for inflation and rounds to the nearest $10.
Tax break for 529 education savings
You can subtract up to $3,000 from Montana taxable income for contributions to 529 education savings. Each spouse may claim up to $3,000, and you may split contributions. The account must be owned by you, your spouse, or your Montana-resident child or stepchild. Contributions are subject to the program’s recapture rules.
Tax break for ABLE savings
You can subtract up to $3,000 for contributions to ABLE disability savings. Each spouse may claim up to $3,000, and you may split contributions. The account must be owned by you, your spouse, or your Montana-resident child or stepchild. Contributions are subject to the program’s recapture rules.
Tax break on military pensions
If you meet the residency rules, you can subtract the lesser of your Montana wages or 50% of your military pension or survivor benefits. You can claim this for up to five consecutive years after you qualify. This subtraction is available through December 31, 2033.
Lower home rates, higher on high-value
Beginning Jan 1, 2026, homeowners can apply for a reduced homestead rate if they owned and lived in the home at least 7 months. If you received the 2024 rebate, you qualify automatically unless you later sell or move. Qualifying long-term rentals can get a reduced rental rate; apply Dec 1–Mar 1 before the tax year and reapply as required (20% reapply each year starting 2028). Rates for qualifying homes are tiered by value vs the median: 0.76% up to the median, 0.9% for >1× to <2×, 1.1% for ≥2× to <4×, and 1.9% for ≥4×; value above $1,500,000 is taxed at 1.4× the tier rate. Filing a false reduced-rate application triggers reassessment, a tripled penalty, and interest. The department sets rules to run these programs.
Add-backs may raise your Montana tax
Montanans who itemize must add back their state income tax deduction, but only up to the amount their itemized deductions exceed the federal standard deduction. You also must add back any money you withdrew from a Montana medical savings account or a first-time home buyer account if you did not use it for allowed costs. These add-backs raise Montana taxable income.
Simpler property tax appeals and hearings
To seek a lower value or a reduced rate, file one written application per valuation cycle with the county and attend the hearing (unless waived). If the county board fails to hear your timely case, your request is granted the day after the board’s final meeting. Boards must consider a recent, standards-compliant independent appraisal or explain in writing why not. Hearings are recorded and kept one year, and decisions must be mailed within 3 days; final minutes go to the state board. County boards can change assessments and decide reduced-rate eligibility. Board members are paid $45 for up to 4 hours or $90 for more than 4 hours when they meet to hear appeals.
Mixed tax changes for business owners
Business owners must add back the federal qualified business income (199A) deduction when computing Montana taxable income. Pass-through entities must also add back any state income taxes they deducted federally. Montana does let you deduct wages or other expenses that were reduced for a federal credit, taken in the same year. Overall, some owners pay more, while some get a matching deduction.
Tiered tax rates for commercial property
Commercial and industrial property pays 1.5% if its value is less than six times the statewide median. It pays 1.9% if it is six times the median or more. Certain large golf courses pay half of the applicable rate.
Local mills fixed; state reimbursements
For fiscal year 2026, some local governments set mills to raise the same dollars as in 2025. After 2026, they keep using the number of mills levied in 2026. Voter-approved levies may switch to a fixed dollar levy equal to 2025 dollars. The state reimburses eligible local taxing entities for revenue lost from new rate cuts, for up to four years, and pays these amounts with entitlement share distributions. Added reimbursements do not grow with the regular entitlement share growth rate.
Automatic funding authority for new programs
The state adds this bill’s sections 3 and 24 to the list of laws with statutory appropriations. Agencies can spend under those sections without a new budget vote. This mainly changes how the state funds these programs, with indirect effects on households.
Clearer tax lien notices and records
When a tax lien attaches, the county treasurer must prepare a certificate with key facts: when taxes went delinquent, the lien date, your name and address, a property description, and separate amounts for tax, penalties, interest, and costs. The certificate must say a tax deed may follow and when the county could get it. The treasurer must sign it, file a copy with the county clerk, and mail you a copy with contact information.
Small assessment increases under $5 forgiven
If a Department of Revenue assessment change adds $5 or less to your property tax, you owe nothing. The state does not issue a new bill for that small amount. This prevents tiny surprise charges.
Lower property tax rate on ag land
The taxable percentage for class three agricultural property drops from 2.16% to 2.05% of productive capacity value. This lowers annual property taxes on farm and ranch land. Multiply your taxable productive value by 0.0011 to estimate your yearly savings.
2024 $400 rebate for homeowners
The law gives homeowners a one-time 2024 property tax rebate. It pays the lesser of $400 or the 2024 property taxes you paid on your principal home. The department mails notices by June 30, 2025. File your claim Aug 15–Oct 1, 2025 (mailed claims postmarked by Oct 1); one rebate per taxpayer. The rebate is not taxed by Montana income tax. Filing a false claim brings recovery of the payment, a 300% penalty, and 12% yearly interest. The separate income-tax subtraction for the earlier statewide rebate ends June 30, 2025.
Stronger tax notices, due dates, lien warnings
The department must send clearer value and classification notices that list last year’s mills and available tax-help programs. Counties must bill half your taxes by November 30 and the other half by May 31, and show itemized levies and local charges. Late amounts owe interest at 5/6 of 1% per month plus a 2% penalty. Before a tax lien, the treasurer must mail a notice at least two weeks ahead and warn that the lien can be sold; lien notices must plainly warn you could lose the property. A lien cannot attach if proper notice was not given and must attach no later than the first working day in August. Cities must share assessment data so tax bills are complete, and counties may post mill-levy comparisons online.
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: 47 • No: 1
Senate vote • 4/24/2025
Do Concur
Yes: 72 • No: 27
Senate vote • 4/22/2025
AMD-SB0542.002.007 Hinkle J DO PASS
Yes: 17 • No: 83
Senate vote • 4/22/2025
AMD-SB0542.002.006 Zolnikov DO PASS
Yes: 27 • No: 73
Senate vote • 4/22/2025
AMD-SB0542.002.004 Zolnikov DO PASS
Yes: 99 • No: 0
Senate vote • 4/22/2025
Do Concur As Amended
Yes: 80 • No: 20
Senate vote • 4/22/2025
Cloture-Sprunger
Yes: 95 • No: 4
Senate vote • 4/22/2025
AMD-SB0542.002.005 Gillette DO PASS
Yes: 29 • No: 71
Senate vote • 4/22/2025
AMD-SB0542.002.002 Caferro DO PASS
Yes: 33 • No: 67
Senate 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 Adopted
4/30/2025Senate2nd Reading Conference Committee Report Adopted
4/29/2025SenateConference Committee Report Received
4/29/2025HouseConference Committee Report Received
4/29/2025SenateConference Committee Appointed
4/29/2025SenateHearing
4/29/2025SenateConference Committee Appointed
4/28/2025House2nd Reading House Amendments Not Concurred
4/28/2025SenateReturned to Senate with Amendments
4/24/2025House3rd Reading Concurred
4/24/2025House2nd Reading Concurred as Amended
4/22/2025House2nd Reading Motion to Amend Failed
4/22/2025House2nd Reading Motion to Amend Failed
4/22/2025House2nd Reading Motion to Amend Failed
4/22/2025House2nd Reading Motion to Amend Failed
4/22/2025House2nd Reading Motion to Amend Carried
4/22/2025House2nd Reading Motion to Amend Failed
4/22/2025HouseRevised Fiscal Note Requested
4/18/2025Senate
Bill Text
Enrolled
5/1/2025
As Amended (Version 3)
4/22/2025
As Amended (Version 2)
4/18/2025
Introduced
3/25/2025