House Bill No. [insert bill number] introduces the "Local Option Property Tax Relief Act," which empowers local governments in Montana to levy a local option tax, contingent upon voter approval. The bill defines key terms such as "primary residence" and "long-term rental," and sets a maximum tax rate of 4%. It mandates that 90% of the revenue generated from this tax be allocated for property tax relief for primary residences and long-term rentals, while also providing for the distribution of funds to local governments that opt not to impose the tax. Additionally, local governments must enact an administrative ordinance before implementing the tax and are required to ensure that a portion of the relief benefits renters of long-term rentals.

The legislation also amends existing laws to enhance financial reporting and auditing requirements for local government entities, necessitating audits for those receiving financial assistance above a specified threshold. It allows the Department of Revenue to conduct special audits and establishes fees for these audits, which local governments must cover. The bill revises the allocation of sales tax proceeds from accommodations and rental vehicles, specifying new percentages for distribution while deleting previous provisions related to fund distribution. It includes codification instructions and a saving clause to protect rights or duties that matured before its effective date of 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