Senator Trevis unveils bill to flatten Montana property tax classes; fiscal note shows $1.2 billion drop in taxable value

Senator Jeremy Trevis, sponsor of Senate Bill 32, told the Senate Local Government Committee he is proposing to “lower property tax class rates” by cutting most residential rates to 1 percent and moving many nonresidential, income-producing property classes to 1.5 percent.

The bill would also raise the rate for some categories, including nonowner-occupied residential rentals (from 1.35 percent to 1.5 percent) and qualified data centers (from 0.9 percent to 1.5 percent). The measure would change how several special classes are taxed, including Class 9 (centrally assessed electric utility allocations) and Class 16 (high-voltage direct-current converter stations). The bill applies an owner-occupied test of seven months for Class 4 residential treatment. Senator Trevis said the levy and inflation-growth calculation would be reset with a new base year and that the changes would apply to property tax years beginning after Dec. 31, 2025.

Nut graf: The proposal is the most comprehensive property-tax rewrite offered so far this session, aiming to “flatten” wide disparities among Montana tax classes. Proponents argued the plan would reduce the tax burden for many homeowners and reduce utility bills where utility taxes are passed through; opponents and several committee members pressed the sponsor and fiscal staff about large estimated reductions to local taxable value and…