House Bill No. introduced by T. Falk seeks to revise lodging and rental car taxes in Montana to provide property tax assistance for principal residences. The bill proposes an increase in lodging and rental car taxes, which will fund a temporary property tax credit of up to $400 for tax year 2025, based on property taxes paid in 2024. Starting in tax year 2026, a permanent property tax assistance program will be established, with funds distributed to counties for credits on principal residences. The Department of Revenue will manage the application process and ensure accountability through penalties for false claims and an appeals process for denied applications. The bill also includes new sections defining key terms, outlining the claiming process, and establishing a state property tax assistance account.

Additionally, the bill amends various sections of the Montana Code Annotated (MCA) to adjust the distribution of tax proceeds from sales and use taxes on accommodations and rental vehicles, introducing a new 1% sales tax on accommodations and campgrounds, as well as on the base rental charge for rental vehicles. It specifies the allocation of tax proceeds to various state accounts, including the state property tax assistance account and the Montana heritage preservation and development account. The bill also outlines consequences for cities or tourism corporations that fail to comply with marketing plan requirements, ensuring that funds are redirected appropriately. Overall, the legislation aims to enhance funding for tourism initiatives while providing property tax relief to residents.

Statutes affected:
LC Text: 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0946_1(1): 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0946_1(2): 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0946_1(3): 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0946_1(4): 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0946_1(5): 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307
HB0946_1: 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-65-121, 15-68-102, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, 22-3-1307