Proposal would tie Montana property tax rates to income

The proposal would calculate tax on the first $350,000 of eligible residential property using a rate tied to the applicant's income. The program would cover eligible applicants' residential property, with income ranges listed for single people, married couples, and heads of household. Applicants must meet the requirements in section 15-6-302. The proposal would apply to property tax years beginning after December 31, 2025.

The proposal would adjust the program's income cutoffs each year using a PCE inflation measure. The adjustments would apply to the qualifying income levels used in the property tax assistance program. The cutoffs would be rounded to the nearest dollar. If the formula would lower them from the previous year, they would stay at the previous year's levels. The income cutoffs would be adjusted annually.