Montana Legislature introduces housing fairness property tax credit for elderly residents

House Bill 154, introduced in the Montana Legislature on January 31, 2025, aims to provide a property tax credit specifically designed for elderly residents and low-income tenants. The bill seeks to alleviate the financial burden of property taxes and rent-equivalent taxes, addressing growing concerns about housing affordability in the state.

The key provisions of House Bill 154 include a tax credit that allows eligible claimants to receive a refund based on a percentage of their property tax or rent-equivalent tax paid. Specifically, the credit is calculated as 75% of the property tax billed or rent-equivalent tax paid, minus a specified threshold amount. Notably, if the calculated credit exceeds the claimant's tax liability, the excess amount will be refunded, ensuring that even those with no taxable income can benefit from the program.

The bill also includes stipulations to prevent abuse of the credit. Claims will be disallowed if the property was acquired primarily to receive the benefits of the credit, or if the landlord-tenant relationship is deemed non-arm's length, allowing the state to adjust excessive rent charges.

Debate surrounding House Bill 154 has focused on its potential impact on housing equity and the state's budget. Proponents argue that the bill is a necessary step toward ensuring that vulnerable populations, particularly the elderly and low-income individuals, can afford housing in an increasingly expensive market. Critics, however, express concerns about the financial implications for the state budget and the potential for misuse of the credit.

The economic implications of this bill could be significant, as it aims to provide financial relief to those most affected by rising housing costs. By targeting the elderly and low-income tenants, the bill seeks to promote housing fairness and stability within Montana's communities.

As House Bill 154 moves through the legislative process, its future will depend on ongoing discussions about its fiscal impact and the effectiveness of its provisions in achieving the intended goals of housing affordability and equity. The outcome of this bill could set a precedent for similar initiatives in other states facing housing challenges.