Montana Legislature approves property tax assistance distribution plan for primary residences

The Montana Legislature has introduced House Bill 924, aimed at providing property tax assistance to residents across the state. Introduced on April 3, 2025, the bill seeks to address the financial burden of property taxes on homeowners by establishing a structured assistance program.

The primary provision of House Bill 924 mandates the Department of Revenue to calculate the amount of property tax assistance available for each primary residence at the end of each fiscal year. This calculation will involve subtracting certain specified amounts from the total property tax revenue and dividing the remainder by the number of certified primary residences. By August 31 of each year, the department is required to distribute the calculated assistance to counties, which will then allocate the funds to support property tax relief efforts.

A notable aspect of the bill is its stipulation that the Department of Revenue may retain a small percentage of the allocated revenue for administrative purposes, as well as a fixed amount for appeals related to property tax assessments. Additionally, the bill includes provisions for withholding payments to local governments that fail to meet financial reporting requirements, ensuring accountability in the distribution of funds.

The introduction of House Bill 924 has sparked discussions among lawmakers and stakeholders regarding its potential impact on local economies and the overall tax structure in Montana. Supporters argue that the bill will provide much-needed relief to homeowners, particularly in areas where property taxes have risen sharply. However, some critics express concerns about the long-term sustainability of the funding mechanism and the implications for local government budgets.

As the bill progresses through the legislative process, its significance lies in its potential to reshape property tax assistance in Montana, addressing both economic and social concerns related to housing affordability. The outcome of this legislation could have lasting effects on residents' financial well-being and the state's approach to property taxation.