Bill > HB842

This bill proposes a legislative referendum that would allow the Montana legislature to establish a sales tax up to 4% specifically designed to reduce property taxes for public schools and the Montana university system. The proposed sales tax would have several key exemptions to minimize repeated taxation, including housing and utilities, groceries, transportation and agricultural fuel, health care, and financial and insurance services. If approved, the sales tax would only go into effect after receiving voter approval in the November 2026 general election. The bill provides a mechanism for the legislature to potentially implement a new revenue source that could help lower property tax burdens for educational institutions, with built-in protections to ensure essential goods and services remain affordable. The proposed legislation would be codified under Title 15 of Montana state law and would become effective upon electoral approval, giving voters direct input on this significant tax policy change.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3589