Montana Legislature passes HB 90 for property tax reappraisal program

The Montana Legislature has introduced House Bill 90, a significant piece of legislation aimed at reforming property tax assessments across the state. Introduced on March 21, 2025, the bill seeks to establish a systematic reappraisal process for specific classes of taxable property, namely class three, class four, and class ten properties.

The primary objective of House Bill 90 is to ensure taxable value neutrality for these property classes, which is intended to stabilize property tax assessments and provide a fairer taxation framework. Under the proposed legislation, the Montana Department of Revenue will be responsible for administering a reappraisal program that mandates the revaluation of properties every two years. This revaluation process is set to begin on January 1 of the second year of the reappraisal cycle, with the first adjustments taking effect the following year.

Key provisions of the bill include requirements for individual property inspections, building permit reviews, and the use of new technologies to enhance the accuracy of property assessments. Additionally, the bill mandates that taxpayers receive detailed information regarding property tax trends, including historical data on tax levies and adjustments based on the consumer price index and personal income growth in Montana.

House Bill 90 has sparked discussions among lawmakers and stakeholders, with some expressing concerns about the potential administrative burden on the Department of Revenue and the implications for local governments reliant on property tax revenues. Supporters argue that the bill will promote transparency and fairness in property taxation, while critics worry about the feasibility of implementing such a comprehensive reappraisal plan.

The bill is set to take effect upon passage and approval, with retroactive applicability to property tax years beginning after December 31, 2024. As the legislative session progresses, the outcomes of House Bill 90 could have lasting implications for property owners and local governments across Montana, shaping the landscape of property taxation in the state for years to come.