Montana Legislature amends residential tax credit for elderly property owners and renters

Montana's House Bill 831, introduced on March 5, 2025, aims to enhance financial relief for elderly residents through an updated residential property tax credit. This legislation seeks to address the growing concern of housing affordability for seniors, a demographic increasingly vulnerable to rising living costs.

The bill proposes amendments to existing tax credit provisions, specifically targeting those who own or rent their homes. Under the new framework, the tax credit for homeowners will be calculated based on the property tax billed, while renters will receive a credit equivalent to their rent payments. Notably, the bill also accommodates individuals who both own and rent parts of their homestead, ensuring a comprehensive approach to tax relief.

Key to the bill is a structured reduction schedule based on household income, which aims to provide more substantial support to lower-income seniors. For example, households earning between $2,000 and $2,999 will see a reduction calculated at 0.6% of their income, with the percentage increasing for higher income brackets. This tiered approach is designed to ensure that those most in need receive adequate assistance.

The introduction of House Bill 831 has sparked discussions among lawmakers and community advocates. Supporters argue that the bill is a necessary step toward alleviating financial pressures on elderly residents, particularly as many face fixed incomes and escalating property taxes. However, some critics express concerns about the potential impact on state revenue and the sustainability of such tax credits in the long term.

As the bill moves through the legislative process, its implications could be significant for Montana's senior population. If passed, it may not only provide immediate financial relief but also set a precedent for future policies aimed at supporting vulnerable community members. The ongoing debates surrounding the bill will likely shape its final form and effectiveness in addressing the pressing issue of housing affordability for seniors in Montana.