House Taxation Committee hears bill to fund property-tax credits with lodging and rental-car taxes

Sen. Carl Glim (sponsor) told the House Taxation Committee that Senate Bill 90 would use lodging- and rental-car tax revenue to create a state Property Tax Assistance Fund that delivers a direct credit on primary-residence property-tax bills.

“This is a bill for an act entitled an act providing property tax assistance for primary residents,” Glim said as he opened the hearing, and he described the proposal as a transparent tax-credit that would appear on a taxpayer’s bill. Glim said the fiscal-note projection for fiscal year 2026 is about $240 per eligible primary residence and that the fund could be increased in later legislation.

Proponents from across the state urged support. Bob Storey of the Montana Taxpayers Association said the plan would provide recurring, direct reductions on county tax bills and could substantially offset projected reappraisal-driven increases. Danny Hess of Montanans United for Sustainable Taxes said the bill is progressive in design and would target owner-occupied households without reducing local governments’ ability to deliver services. Gwen Jones, Missoula city councilor for Ward 3, and local finance directors said municipalities could preserve tourism investments while offsetting costs borne by residents.

Officials from the Department of Revenue answered technical questions about administration. Jared Isom, an economist who prepared the fiscal estimate, and Bryce Kotz, bureau chief with the Property Assessment Division, told legislators the Department would verify initial primary-residence applications and pass eligible lists to counties so the credit could be applied to individual tax bills. Kotz said the Department could perform limited matching of income-tax addresses to property records but that PO boxes and differing mailing addresses create verification challenges.

Committee members pressed on the administrative burden and eligibility: Representative Carlin asked whether DOR could reduce the application load by matching addresses; DOR staff said limited matching is possible but not foolproof. Representative Durham asked whether the credit would be a flat amount statewide; Glim said the bill sets a uniform credit per primary residence (the fiscal note projected ~$239.65 in FY26). DOR confirmed the application is an initial filing and does not need to be renewed annually unless eligibility changes.

Glim closed by urging a due pass, calling SB 90 a “simple” mechanism to provide property-tax relief. The committee closed the hearing without taking executive action during the hearing portion; the bill remained eligible for future executive action.