Bill > HB507

This bill proposes a constitutional amendment to establish a 4% statewide sales and use tax specifically dedicated to reducing property taxes that fund K-12 education. The amendment would modify the existing state constitution to allow the legislature to implement this sales tax, with a key provision requiring that the net revenue from the 4% tax be used to lower property taxes for schools. Importantly, if legislators want to appropriate the sales tax revenue for purposes other than reducing school property taxes, they would need a three-fourths vote in both legislative chambers to do so. The proposed amendment would be submitted to Montana voters in the November 2026 general election, and if approved, would take effect on July 1, 2027. The bill also requires a two-thirds affirmative vote by the legislature to pass the constitutional amendment, reflecting the heightened threshold needed for constitutional changes. This proposal represents a significant shift in Montana's tax policy, potentially providing a new mechanism to alleviate property tax burdens for school funding.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3575