Montana’s property tax reform discussions are far from over, even after House Bill 231 (HB 231) was tabled by the Senate Taxation Committee in a 5–3 vote. The bill, which aimed to raise taxes on second homes while lowering rates for primary residences and long-term rentals, will not move forward- yet the larger conversation about property taxes remains active.
Proponents of the bill believed it would provide financial relief to full-time residents struggling with rising home prices across the state. With an increasing number of second homes owned by out-of-state buyers, many felt it was only fair to shift some of the tax burden to non-residents who do not pay state income taxes.
However, local concerns arose regarding the bill’s impact. In cities like Billings and Sunburst, where tax caps are in place, there was worry that raising taxes on second homes wouldn’t generate enough revenue to balance the reductions for primary residents. Additionally, some Montana residents who own second homes expressed frustration, feeling the bill unfairly targeted those who already contribute to the state’s tax base.
Now that HB 231 has been set aside, focus has shifted to House Bill 528. This new proposal aims to provide broader property tax relief across residential, commercial, and agricultural sectors by adjusting tax rates for industrial properties. Analysts predict this could lead to a 24% increase in taxes for some industrial property owners.
As Montana grapples with rising housing costs and growing demand for public services, the ongoing debate over property taxes is likely to continue shaping the state’s legislative agenda throughout the year and beyond.
