Montana House District 55 Legislative Update
April 23, 2025
By Representative Brad Barker (Montana House District 55)
As of Tuesday morning, April 22, we have just finished Legislative Day 79.
1031 bills and resolutions have been introduced in the House and 722 in the Senate. 1041 bills have passed to the second chamber.
Summary & Comparison of Significant Montana Property Tax Reform Bills in Their Most Current Form
House Bill (HB) 231 establishes a multi-year property tax reform focused on principal residences and long-term rentals with homestead tax exemptions:
Provides a $400 rebate for taxes paid in 2024.
Introduces a reduced property tax rate for eligible owner-occupied homes and qualifying long-term rentals.
Begins a phased system (2025–2027), with automatic eligibility for many in early years.
Includes strong penalties for false claims and establishes an appeals process.
Reimbursement mechanisms for local governments with a fixed mill levy in their charter.
HB 528 proposes across-the-board tax rate cuts:
Reduces all residential and commercial rates proportionally.
Cuts agricultural land tax rate from 2.16% to 1.7%.
Caps total school equalization and university funding losses at $50M in 2025.
Makes no distinction between primary residences, rentals, or high-value homes.
Significant tax shift to centrally assessed properties like utilities that will lead to electricity rate increases.
Senate Bill (SB) 542 combines elements from HB 231 and HB 528, with additional reforms:
Freezes property values at 2024 levels for 2025–26 unless values fall.
Offers the same $400 rebate as HB 231 for 2024 taxes.
Mirrors HB 231’s reduced tax rate programs for homeowners and long-term rentals, with nearly identical definitions and procedures.
Incorporates HB 528’s rate cuts for agricultural and commercial/residential property.
Reimbursement mechanisms for local governments with a fixed mill levy in their charter.
Pushback on the homestead tax exemptions in HB 231 and SB 542 is predominantly from legislators seeking to protect short-term rentals and out-of-state homeowners from property tax increases. Within the current framework where local government is funded solely by property taxes, any relief for resident homeowners shifts taxes to other types of properties. I do not support SB 90 which would buy down both out-of-state and Montana resident owned homes with income taxes which are only paid by Montana residents.
I support moving forward with either HB 231 or SB 542 to provide comprehensive property tax relief for Montana residents. Since it is too late to implement that relief this year because a solution was not passed in time, rebates are necessary as well.
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.
