Montana Legislature approves property tax rebate for 2022 and 2023 taxpayers

On March 28, 2025, the Montana Legislature introduced House Bill 906, aimed at providing property tax rebates to residents who meet specific criteria. The bill seeks to address the financial burden of property taxes on homeowners by offering a rebate for taxes paid during the tax years 2022 and 2023.

The key provisions of HB 906 stipulate that taxpayers must have owned and lived in their principal residence for at least seven months during the relevant tax year to qualify for a rebate. If a taxpayer changes their principal residence within the tax year, they may still claim a rebate if they have paid property taxes for a total of at least seven consecutive months across both residences. The proposed rebate amounts are set at $319 for tax year 2022 and $500 for tax year 2023, or the total amount of property taxes paid, whichever is less.

The bill has sparked discussions among lawmakers regarding its potential impact on state revenue and the fairness of the rebate amounts. Some legislators argue that the rebate is necessary to alleviate the financial strain on homeowners, especially in light of rising property values and taxes. Others express concern about the long-term implications for state funding, particularly for essential services that rely on property tax revenue.

Economic implications of HB 906 could be significant, as it aims to provide financial relief to homeowners, potentially stimulating local economies through increased disposable income. However, the bill's temporary nature, set to terminate on June 30, 2026, raises questions about its sustainability and effectiveness in the long run.

As the legislative session progresses, stakeholders are closely monitoring the bill's developments, with potential amendments and debates expected as it moves through the legislative process. The outcome of HB 906 could set a precedent for future property tax relief measures in Montana, making it a critical issue for both lawmakers and residents alike.