Bill > HB155

This bill revises property tax rates and introduces a new homestead exemption for residential properties in Montana. The legislation modifies the tax rates for class four residential and commercial properties, creating a graduated tax rate structure based on property market value. For residential properties, the first $50,000 of market value will be exempt from taxation, with subsequent value brackets taxed at incrementally increasing rates ranging from 1% to 2%. Commercial properties will have a tax rate of 1.4% for the first $400,000 of market value, and 1.89% for value above that threshold. The bill establishes a homestead exemption application process for property owners, defining eligibility criteria such as the property being a principal residence and the owner living there for at least 7 months of the year. The legislation includes provisions for automatically qualifying homeowners who previously received a property tax rebate, and sets up a detailed application and review process. Additionally, the bill imposes penalties for false or fraudulent homestead exemption applications and provides an appeal mechanism for denied applications. The changes will apply to property tax years beginning after December 31, 2024, and aim to provide tax relief for residential property owners while adjusting the tax burden across different property value ranges.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0006