House Taxation Committee tables bill to raise lodging, rental-car taxes for property-tax relief

The House Taxation Committee tabled House Bill 946, a proposal to raise state lodging and rental-vehicle taxes by one percentage point and use those revenues, plus a one-time transfer from the state’s debt and liability free account, to fund immediate property-tax relief.

Representative Falk, the bill sponsor, told the committee the measure would provide an immediate $400 rebate to qualifying primary-residence owners in the first year by drawing on the debt and liability free account and then use the added lodging and rental-car tax revenue for ongoing relief. "This tax year, it allows for an effective immediate tax relief in 02/2025," Falk said during opening remarks. He described the measure as a way to “bring tax relief, but minimize the tax shift.”

The bill drew both support and strong opposition at the hearing. Danny Hess, representing Montanans United for Sustainable Taxes Coalition, said his coalition backs HB 946 as a way to extend the relief envisioned in Senate Bill 90 and to better align tourism-related revenue with local infrastructure impacts. "We support this as a mechanism to to boost that amount of relief provided by SB 90," Hess said.

Opponents included the Montana Lodging and Hospitality Association and individual hotel…