This bill proposes revisions to the tax rates for certain residential properties in Montana, specifically targeting properties eligible for the homestead reduced tax rate and the rental property reduced tax rate. The amendments to Section 15-6-134 of the Montana Code Annotated (MCA) include changes to the tax percentages applied to class four residential properties. Notably, the tax rate for properties qualifying for the homestead or rental property reduced tax rates will be adjusted to 0.76% for market values at or below the median residential value, with incremental increases for higher market values, culminating in a rate of 1.9% for properties valued at or above 5.5 times the median residential value. Additionally, the tax rate for rental multifamily dwelling units qualifying for the rental property reduced tax rate is set at 1.1%.

The bill also introduces new sections establishing an immediate effective date upon passage and approval, as well as retroactive applicability to tax years beginning after December 31, 2026, and to the reappraisal cycle starting January 1, 2027. This retroactive provision aims to ensure that the revised tax rates are applied consistently in future assessments. The changes reflect a broader effort to adjust property tax burdens in alignment with market values and to provide relief for qualifying residential properties.

Statutes affected:
LC Text: 15-6-134