Montana Legislature approves $400 property tax rebate for 2024 homeowners

The Montana Legislature has introduced Senate Bill 434, aimed at providing financial relief to homeowners through a property tax rebate for the tax year 2024. The bill, presented on February 24, 2025, seeks to address the financial burden of property taxes on residents by offering a rebate of up to $400 or the total amount of property taxes paid, whichever is lower.

Key provisions of the bill stipulate that taxpayers must have occupied their principal residence for at least seven consecutive months during the tax year to qualify for the rebate. This includes those who may have changed their principal residence within the year, as long as they meet the occupancy requirement. The Montana Department of Revenue is tasked with notifying potential claimants by June 30, 2025, although eligibility is not contingent on receiving this notice.

The bill has sparked discussions among lawmakers regarding its potential impact on state revenue and the fairness of the rebate system. Some legislators express concern that the rebate may disproportionately benefit homeowners while neglecting renters and those in need of housing assistance. Others argue that the measure is essential for supporting residents facing rising property taxes.

The economic implications of Senate Bill 434 could be significant, as it aims to alleviate financial pressure on homeowners, potentially stimulating local economies by allowing residents to allocate funds toward other expenses. However, the bill's funding sources and long-term sustainability remain points of contention among critics.

As the legislative process unfolds, the future of Senate Bill 434 will depend on further debates and possible amendments. If passed, it could provide much-needed relief to many Montanans, but it also raises questions about equity in property tax relief and the broader implications for state funding.