Bill > HB154

This bill establishes a new housing fairness property tax credit for Montana residents designed to help offset property taxes or rent-equivalent property taxes. To be eligible, individuals must have lived in Montana for at least 9 months of the tax year, occupied a qualified residence (owned or rented) for at least 7 months, and have a household income below $150,000. The credit amount is calculated by multiplying the property tax or rent-equivalent tax by 0.75 and then subtracting a "threshold amount" that varies based on household income (ranging from 1% to 9.5% of income). If the calculated credit is more than the taxpayer's tax liability, the excess will be refunded. Importantly, taxpayers cannot claim this new credit simultaneously with the existing residential property tax credit for the elderly. The credit applies to various residential properties including single-family homes, manufactured homes, and mobile homes. Claimants must provide documentation of property taxes or rent paid and can file their claim when submitting their tax return or by April 15 of the following year. The bill includes provisions to prevent fraud and allows for verification of claims. The housing fairness property tax credit will become effective January 1, 2026, and will apply to tax years beginning on or after that date.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0008