Bill > HB231

This bill aims to revise property tax rates and provide tax relief for Montana residents through several key provisions. The legislation introduces a new property tax structure that offers reduced tax rates for principal residences and long-term rental properties, creates a property tax rebate program, and implements changes to how local government mill levies are calculated. Specifically, the bill establishes a graduated tax rate system for residential properties, with lower rates for properties valued at or below the median residential value and progressively higher rates for properties with higher market values. For principal residences, the bill creates an application process for a reduced tax rate that varies based on the property's market value, with rates ranging from 0.76% to 1.9% depending on the property's value. Similarly, long-term rental properties can qualify for a reduced tax rate through an application process. The bill also provides a $400 property tax rebate for qualifying homeowners who paid property taxes in 2024, with specific eligibility requirements. Additionally, the legislation includes provisions for local governments to maintain their revenue levels while implementing these tax rate reductions, and it creates a mechanism for reimbursing local governments for potential revenue losses. The bill includes detailed definitions, application procedures, penalties for fraudulent claims, and provisions for appeals, with most provisions becoming effective in 2026.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0173