Certified Montana homeowners would receive a property tax credit

The state treasurer would transfer part of certain volatile state revenue into the Montana Growth and Opportunity Trust. The trust would receive money from capital gains, partnership income, and specified treasury-account interest earnings. The treasurer would transfer 17.5% of volatile revenue twice each year from fiscal years beginning July 1, 2027, through June 30, 2035. Beginning with the fiscal year starting July 1, 2035, the transfers would be 10% twice each year. If specified general fund and budget reserve balances fall below 20% of certain appropriations, the transfers would be cut in half for that fiscal year. The governor could cancel remaining transfers for a biennium after a certified projected general fund deficit. Transfers would begin in the fiscal year starting July 1, 2027, with additional rules beginning July 1, 2035; the act says it takes effect on passage and approval.

The Department of Revenue would certify eligible primary residences, and counties would place available state assistance on those homes’ property tax bills as a credit. Eligible homes include owner-occupied residential property worth $1 million or less, including single-family homes, qualifying units, trailers, and manufactured homes. Owners would apply by mail or electronically and declare under penalty of perjury that the property is their primary residence. The owner generally must own and live in the home for at least seven months of the tax year, have no other primary residence, and pay the assessed Montana property taxes. Applications received after March 1 would apply to the following tax year. False applications could lead to criminal prosecution, recovery of the assistance, and a ban on claiming assistance for up to 10 years. Certification would apply to the tax year of an application received by March 1 and would continue until ownership, primary-residence use, or the owner’s selected primary residence changes.

State accounts would direct money toward pensions, affordable housing loans, water projects, local bridges, and early-childhood grants. Recipients could include public agencies, local governments, retirement systems, low- and moderate-income housing projects, child-care organizations, and early-childhood providers. Pension transfers would require certification by the teachers’ or public employees’ retirement board and would be limited by the fund balance and stated caps. Bridge grants would require local governments to provide at least 20% matching funds. Early-childhood grants could support child-care businesses, worker training, quality improvements, affordability efforts, innovation, and disaster assistance. Housing loans would generally support eligible low- and moderate-income housing or first-time veteran homebuyers under the listed program rules. Several transfers are scheduled for fiscal years beginning July 1, 2024, July 1, 2025, and July 1, 2026; ongoing trust distributions would follow the revenue-transfer schedule.