Source: Visit websiteFor years, rising home prices across Montana have translated into painful property tax hikes for full-time residents. But a simple, across-the-board tax cut would have gutted funding for schools, emergency services, and local infrastructure. That dilemma fueled months of heated debate in Helena, with at least 47 competing tax proposals floated this session alone.
On Wednesday, lawmakers passed the final two-bill package aimed at resolving the crisis—shifting the tax burden away from primary residences and onto Montana's biggest landholders and absentee owners.
In the end, it was Gov. Greg Gianforte 's preferred legislation that prevailed. House Bill 231 and Senate Bill 542 passed in the final hours of the legislative session, delivering long-promised property tax relief—but not without a fight.
But the bill didn't stay on the shelf for long, and it was resurrected as part of a broader deal to deliver homeowner relief.
SB 542, which shifts more of the tax burden onto industrial properties like refineries and utility companies, also faced stiff resistance. Business groups and the chamber of commerce warned it could lead to job losses and higher utility costs.
Still, the demand for tax relief proved stronger than the opposition. A tenuous coalition of cross-party lawmakers, eager to deliver results, helped push both bills through in the final stretch. Rep. Llew Jones , the legislation's chief architect and chair of the appropriations committee, called the shift a necessary correction and a practical alternative to letting residential taxes continue to climb unchecked.
Together, the two bills mark a sweeping rebalancing of Montana's property tax system. A new homestead exemption lowers the tax load on owner-occupied homes, while vacation properties and high-value commercial assets are expected to pay more.
