Bill > HB946

This bill establishes a new state property tax assistance program funded by increased sales taxes on lodging and rental cars, with the goal of providing property tax relief to Montana homeowners. Specifically, the bill creates a temporary $400 property tax credit for the 2024 tax year and a permanent ongoing property tax assistance program starting in 2026. The funding mechanism involves increasing sales taxes on accommodations and rental cars by 1% each, with the additional revenue being deposited into a new state property tax assistance account. To qualify for the property tax assistance, homeowners must apply and certify that the property is their principal residence, lived in for at least 7 months of the year, and meet certain other eligibility requirements. The bill includes detailed provisions for how counties will administer the property tax credits, how applications will be processed, and what penalties exist for submitting false information. The legislation also includes provisions for transferring initial funds to the new account, such as unobligated money from the debt and liability free account, and sets up a process for ongoing funding through the increased sales taxes. The bill is designed to provide direct property tax relief to homeowners while creating a sustainable funding mechanism through sales tax revenue.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC4257