The Montana Legislature has introduced Senate Bill 117, a significant piece of legislation aimed at modifying property tax regulations for governmental entities, particularly concerning airport funding. Introduced on March 21, 2025, the bill seeks to address the financial challenges faced by airports in the state by allowing local governments to levy taxes for airport support even if they have not done so in the previous two years.

One of the key provisions of Senate Bill 117 permits governmental entities to impose a levy for airport funding without the requirement of prior appropriations for operating funds. This change is intended to provide a more flexible financial framework for airports, which are crucial for transportation and economic development in Montana. The bill also includes stipulations that prevent these levies from being counted in the total property taxes assessed in subsequent years, potentially easing the tax burden on property owners.

Debate surrounding the bill has highlighted concerns about the implications of increased taxation on local residents. Critics argue that while supporting airports is essential, the financial impact on taxpayers must be carefully considered. Proponents, however, emphasize the importance of maintaining and improving airport infrastructure to support economic growth and connectivity.

The bill is set to apply to property tax years beginning after December 31, 2025, indicating a future-oriented approach to addressing the funding needs of airports. As the legislative process continues, stakeholders from various sectors, including local governments and aviation authorities, are closely monitoring the bill's progress and potential amendments.

Overall, Senate Bill 117 represents a strategic effort by the Montana Legislature to enhance airport funding mechanisms while balancing the interests of taxpayers. The outcome of this legislation could have lasting effects on the state's transportation infrastructure and economic landscape.