Montana House District 55 Legislative Update
April 30, 2025
By Representative Brad Barker (Montana House District 55)
As of Tuesday evening, April 29th, we have just finished Legislative Day 84 out of a maximum of 90 days.
1,036 bills and resolutions have been introduced in the House and 723 in the Senate. 1,087 bills have passed to the second chamber. Many anticipate that the 69th Legislative Session could adjourn as early as Wednesday, April 29th.
The Legislature is close to passing comprehensive property tax reform with Senate Bill (SB) 542, amended by House Bill (HB) 231, providing relief for residents. The reforms are set to begin in tax year 2025, with the most significant changes continuing implemented in 2026 and beyond to give the Department of Revenue time to implement the changes to include required tax software upgrades. Below is a quick summary of the proposed changes that should be finalized this week.
SB 542 as Amended by HB 231
TY 2025/FY 2026
Agricultural tax rate (assessment rate) is reduced from 2.16% to 2.05%.
Reduces Commercial tax rate (assessment rate) from 1.89% to 1.4% for the first $400k in value per property.
Creates a tiered residential tax rate (assessment rates) from 1.35% to a tiered rate based on market value
First $400K is 0.76%
$400k-$1.5 million is 1,1%
Market Value over $1.5 million is 2.2%
Altogether, this will reduce a median valued home property taxes by an estimated $719 from the prior year, and by $952 from what they would have been under current law. This represents a decrease of 34% from the prior year, and 40% from what their taxes would have been under current law.
In total, residential property is estimated to see a reduction of 2% relative to the prior year and 12% relative current law with most of the difference being paid by higher value homes.
Rebates-$400 rebate to primary resident homeowners (240,000 estimated primary residences will qualify)
Key Changes to TY 2026 and Future Years
Agricultural property tax rate (assessment rates) is maintained at the new lower rate of 2.05%
Commercial property is given a tax rate (assessment rate) of 1.5% for the first $2.1 million in market value, and 1.9% for any market value over that amount
With the amendment, Residential property is further reduced for primary residences and long-term rentals.
First $356k is 0.76%
$356k up to $713k 0.9%
713k up to $1.4 million is 1,1%
Value of$1.4 million is 1.9%
Properties that qualify for rebates will be automatically enrolled as primary residence in the following year. Long-term rentals will need to apply, and the application window is opening later this year
Most other properties will have a tax rate of 1.9%. This includes second homes, short-term rentals, and other types of property
Properties that may not qualify for as a primary residence or long-term rental, but are associated with qualified agricultural land, will have a rate of 1.35% - Less than the highest 1.9% rate, but potentially more than the primary residences and long-term rentals
I will provide more details and examples of what these reductions mean for Carbon County residents based on the final version passed on 3rd reading in each chamber of the Legislature and signed into law by the Governor. Please email, text or call with any questions or feedback. I am honored to serve you and remain committed to continuing to earn your trust.
