Montana's House Bill 920, introduced on March 28, 2025, aims to provide significant tax relief for senior care facilities and housing sponsors, addressing the growing need for affordable senior living options in the state. The bill proposes a temporary property tax exemption for tax-exempt property owners and operators involved in senior care, allowing them to apply for an additional five-year exemption upon expiration of the initial term.

Key provisions of the bill include stipulations that the exemption applies to all property used for senior care and housing, with specific conditions under which the exemption can be renewed. Notably, if a property is sold or leased to a non-tax-exempt entity, the exemption will cease at the start of the next property tax year. Additionally, the bill allows donors of land for senior care projects to retain a portion of the property and still benefit from tax exemptions, provided that the land does not exceed 20% of the total area used for ancillary commercial businesses.

The bill has sparked discussions among lawmakers and stakeholders, particularly regarding its potential impact on local tax revenues and the balance between supporting senior care initiatives and maintaining funding for essential public services. Proponents argue that the exemptions will encourage the development of much-needed senior housing, while opponents express concerns about the long-term implications for local government budgets.

Experts suggest that if passed, House Bill 920 could lead to an increase in senior housing projects across Montana, addressing a critical gap in the market as the population ages. The bill's requirement for annual reporting by tax-exempt sponsors to local governments aims to ensure transparency and accountability in the use of tax benefits.

As the legislative session progresses, the future of House Bill 920 remains uncertain, but its potential to reshape the landscape of senior care in Montana is clear. Stakeholders are closely monitoring the bill's developments, recognizing its significance in addressing the pressing needs of the state's aging population.