Bill > SB542

This bill generally revises property tax laws in Montana, introducing several significant changes. It provides a property tax rebate of $400 or the total amount of property taxes paid (whichever is less) for tax year 2024 for principal residences, with specific eligibility requirements such as owning and living in the property for at least 7 months. The bill introduces a graduated tax rate structure for residential and commercial properties, with lower rates for owner-occupied homes and long-term rentals. For residential properties, tax rates will vary based on market value, ranging from 0.76% for properties under $50,000 to 2.2% for properties over $2 million. Commercial properties will also see a tiered tax rate system. The bill freezes property values for 2025 and 2026 using the 2024 property value, unless the Department of Revenue determines the property value has decreased. Additionally, it provides a mechanism for property owners to claim a reduced tax rate for principal residences and long-term rentals, with an appeal process for denied applications. The bill also includes provisions for reimbursing local governments for potential revenue losses and creates a refund option for property owners who fail to claim the homestead reduced tax rate. These changes aim to provide property tax relief for Montana residents while maintaining local government funding.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0189