Bill > HB841

This bill proposes a constitutional amendment to modify how sales tax or use tax revenue can be used in Montana. Currently, the state constitution limits the sales tax rate to 4%, and this bill would add a new requirement that such tax revenue must be used primarily to reduce property taxes for public schools and the Montana University System. The bill stipulates that if the legislature wants to appropriate these funds for any other purpose, it would require a supermajority vote of three-fourths of the members in each legislative house. The proposed amendment would be submitted to Montana voters in the November 2026 general election and, if approved, would become effective on July 1, 2027. Because this is a proposed constitutional amendment, the bill requires a two-thirds affirmative vote from all members of the legislature to pass, which is a higher threshold than typical legislation. The goal appears to be providing property tax relief for educational institutions by creating a dedicated funding mechanism through potential future sales tax revenue.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3590