House Bill No. [insert bill number] introduces the "Local Option Property Tax Relief Act," which empowers local governments in Montana to implement a local option tax aimed at providing property tax relief for primary residences and long-term rentals. This tax can be adopted through a public vote, with a maximum rate set at 4%. The majority of the revenue generated (90%) will be allocated for property tax relief, while additional funds will support local governments that do not impose the local option tax and cover administrative costs. The bill also establishes procedures for proposing, voting on, and managing the local option tax, ensuring transparency and accountability in its implementation.

In addition to the local option tax provisions, the bill amends several sections of the Montana Code Annotated (MCA) to enhance financial reporting and auditing requirements for local government entities. It mandates audits for entities receiving financial assistance above a specified threshold and introduces financial reviews for those not meeting audit criteria. The bill also modifies tax reporting requirements for sellers of accommodations and rental vehicles, requiring them to include physical addresses in their tax returns. It revises the distribution of sales tax proceeds, ensuring allocations for the Montana Heritage Center and historic preservation grants, while deleting previous provisions regarding tax revenue allocation. The bill is scheduled to take effect on July 1, 2026.

Statutes affected:
LC Text: 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0489_1(1): 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0489_1(2): 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0489_1(3): 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0489_1(4): 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0489_1: 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307