MontanaProposal would direct lodging taxes to eligible homeowners’ property bills
The proposal would use lodging and rental vehicle tax revenue to give eligible Montana homeowners a credit on their property tax bills.
What it does
Counties would put state assistance on eligible homeowners’ property tax bills as a credit. If the assistance exceeds the bill, the county may keep the extra amount.
Owners would apply for a credit by March 1. They generally must live in their only primary home for at least seven months of the year and pay Montana property taxes.
The proposal would direct portions of lodging and rental vehicle tax revenue to a state account for property tax assistance. Each home’s amount would depend on available revenue and the number of certified homes.
Argument forEligible owners could receive state assistance as a credit on their property tax bill, which may reduce the amount they owe.
Argument againstApplicants would have to provide Social Security numbers and certify under penalty of perjury, which could make some owners wary of applying.
More detail
Counties would apply state assistance as a credit on eligible homes’ property tax bills. The credit would go to owners of primary residences certified by the Department of Revenue. If the calculated assistance exceeds the property tax billed, the county may keep the excess. The first distribution to counties would be due by August 31, 2026, for taxes collected in fiscal year 2026.
Owners would apply to the Department of Revenue to certify a home for assistance. Eligible homes include single-family homes, units in multi-unit buildings, trailers, manufactured homes, and mobile homes. The owner must own and live in the home for at least seven months of the year, use it as their only primary residence, and pay Montana property taxes. An exception allows an owner who changes primary homes during the year to qualify after living in both for at least seven consecutive months total. An application received after March 1 would apply to the next tax year. Entity-owned homes generally would not qualify, but a trustee may apply for a grantor’s home held in a revocable trust. A false or fraudulent application could lead to prosecution, recovery of assistance, and a ban on claiming assistance for up to 10 years. Approved certification would continue until ownership changes, the owner stops using the home as a primary residence, or the owner applies for assistance for another home.
The state would direct specified lodging and rental vehicle tax revenue to a property tax assistance account. The account would receive specified portions of lodging tax proceeds and rental vehicle revenue, and the state would distribute assistance to counties based on certified homes. The assistance per home would depend on account revenue after specified deductions and the number of certified homes. The department may withhold a payment to a local government that has failed for more than 90 days to file a required financial report or remit amounts it owes. The bill proposed an effective date of July 1, 2025. Its first county distribution would be due by August 31, 2026.
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Where it stands
- Introduced
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 23(S) Died in ProcessDied
- Apr 17(H) Take from Committee; Place on 2nd Reading - (H) TaxationMinor
- Vote recorded Take from TAX to second reading on Friday - Nicol. Result: fail.Lower
- Apr 16(H) Take from Committee; Place on 2nd Reading - (H) TaxationMinor
- Vote recorded Take from TAX to Second Reading - Zolnikov. Result: pass.Lower
- Apr 11(H) Take from Committee; Place on 2nd Reading - (H) TaxationMinor
- Vote recorded Take from table in TAH to second reading - Falk. Result: pass.Lower
- Apr 3(H) Tabled in Committee - (H) TaxationMinor
- Vote recorded to_table. Result: pass.Lower
- Mar 7(H) Hearing - (H) Taxation
- Mar 1(H) 1st Reading
- Mar 1(H) Referred to Committee - (H) TaxationMinor
- Feb 28(S) Transmitted to House
- Vote recorded Do Pass. Result: pass.Upper
- Feb 28(S) 3rd Reading
- Feb 28(S) Scheduled for 3rd ReadingMinor
- Feb 27(S) Committee Report - (S) Finance and Claims
- Feb 27(S) Hearing - (S) Finance and Claims
- Feb 26(S) Rereferred to Committee - (S) Finance and ClaimsMinor
- Vote recorded Do Pass As Amended. Result: pass.Upper
- Vote recorded AMD-SB0090.002.001 Mr. President D/PASS. Result: pass.Upper
- Feb 26(S) 2nd ReadingMinor
- Feb 26(S) 2nd Reading Motion to AmendMinor
- Feb 26(S) Scheduled for 2nd ReadingMinor
- Feb 10(S) Revised Fiscal Note Printed
- Feb 7(S) Revised Fiscal Note Signed
- Feb 7(S) Revised Fiscal Note Signed
- Feb 7(S) Revised Fiscal Note ReceivedMinor
- Jan 28(S) Committee Report - (S) Local Government
- Jan 28(S) Revised Fiscal Note Requested
- Jan 28(S) Committee Executive Action - (S) Local Government
- Jan 27
- Vote recorded do_pass_as_amended. Result: pass.Upper
- Jan 16(S) Hearing - (S) Local Government
- Jan 14(S) Referred to Committee - (S) Local GovernmentMinor
- Jan 14(S) Fiscal Note Printed
- Jan 13(S) Fiscal Note Signed
- Jan 13(S) Fiscal Note ReceivedMinor
- Jan 6(S) 1st Reading
- 2024
- Dec 30(S) Fiscal Note Requested
- Dec 27(S) Introduced
- Dec 27(LC) Draft Delivered to Requester
- Dec 9(LC) Draft Ready for Delivery
- Dec 9(LC) Draft in Assembly
- Dec 9(LC) Draft in Final Drafter Review
- Dec 9(LC) Draft in Input/Proofing
- Dec 8(LC) Draft in Edit
- Dec 7(LC) Draft in Legal Review
- Oct 29(LC) Drafter AssignedIntroduced
Taxes & BudgetHousing