House Bill No. introduced by B. Barker and others proposes an amendment to Article VIII, Section 16 of the Montana Constitution. The amendment stipulates that revenue generated from a sales tax or use tax must be allocated specifically to reduce property taxes that support public schools and the Montana University System. This allocation can only be altered if a three-fourths majority of the legislature votes to appropriate the funds for other purposes. Additionally, the bill establishes that the general statewide sales tax or use tax rate cannot exceed 4%.

The bill also includes provisions for its passage, requiring a two-thirds affirmative roll call vote from all members of the legislature due to its constitutional amendment nature. If approved by voters in the November 2026 general election, the act would take effect on July 1, 2027. The ballot will present the amendment with options for voters to express their support or opposition.