Legislative Notes
Why real property tax relief matters and how we got here
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Representative Brad Barker House District 55 (Carbon County)
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Over the past 40 years, Montana’s property tax burden quietly shifted from natural resource extraction and industries to homeowners. From 2003 to 2023 alone, residential property as a percentage of the total taxable value went from 58% to 76%.
From 2020 to 2024, residential values rose about 66% statewide. While commercial tax rates stayed relatively flat or even dropped, taxes on homes spiked. The system was upside-down, and everyone felt it.
What the 2025 Reform Did
That’s why the Legislature passed House Bill (HB) 231 and Senate Bill (SB) 542. These reforms came from the Republican-led Governor’s Property Tax Task force that studied the data for months and recommended real structural relief.
The reforms lowered the Montana primary homeowner residential tax rate from 1.35 percent to a tiered system with the lowest tier at 0.76 percent; protected long-term rentals, agricultural property, and small businesses; and provided an immediate $400 homeowner rebate. They shifted part of the load back to large-corporate property taxes, non-resident homes that aren’t rented long-term, and short-term rentals. For context, around 45 states have some form of homestead tax exemption.
That said, no bill is perfect. We need to fully evaluate the outcome of the new rates and adjust where necessary. For example, there are some unintended increases for large apartment complexes that provide long-term rentals that need fixed during the next session in 2027.
The Freedom Caucus fought true tax reform throughout the session
Before HB 231 and SB 542 passed, the Freedom Caucus fought the Republican plan by running Democrat Gubernatorial Candidate Ryan Busse’s plan. Busse’s plan, Freedom Caucus HB 528, largely consisted of lowering all taxable rates which would force local governments to raise their mill levies to cover the loss in taxable value. It was a shell game, so the Freedom Caucus could say the State lowered your taxes, but local governments raised them.
Then they threw their support behind SB 90 – a “plan” that only offered a $250 rebate and no permanent change in rates. Under SB 90, the average homeowner would have saved less than one-quarter as much as they do today. That’s the difference between real reform and political theater.
Freedom Caucus Falsehoods vs. the Facts
Freedom Caucus backed Party Boss Art Wittich, summed up their misinformation campaign:
“We need property tax relief. What we got was an awful tax shift. A few people will get a property tax break and the rest of us will pay for that. It’s atrocious. We should never let that happen.”
But the numbers tell the truth, 375,000 Montana homeowners – roughly 89 percent of all residential properties – received flat or reduced bills. Only about 11 percent saw increases, mainly high-value vacation homes. If you compare that to the roughly 34% of property tax bills mailed to out-of-state addresses, it’s clear that Montana residents benefited.
It’s no surprise that the Freedom Caucus backed Mr. Wittich, who has admitted he spends most of his time out of state in Florida, and the Freedom Caucus are leading the charge to raise your taxes in an apparent attempt to curry favor with high paid corporate lobbyists and out-of-state interests. Now that the tax bills are in the hands of homeowners, they can no longer make blatantly false claims like Wittich’s and others who puppet the Freedom Caucus.
What You Can Do
Montana residents and long-term rental homeowners should verify that they’re enrolled for the Homestead Exemption to lock in these savings. Visit: https://svc.mt.gov/dor/OrionDataPortal/HomesteadExemption.aspx and confirm your enrollment today. You should be enrolled for the Homestead Exemption if you applied for the $400 rebate.
The Bottom Line
HB 231 and SB 542 fixed an imbalance. They cut rates to protect Montana primary residents, young families entering the housing market, fixed-income retirees, and small businesses. Meanwhile, the Freedom Caucus and its out-of-state allies opposed them, preferring small rebates instead of reform. That would have left Montana homeowners footing the bill again next year.
Facts beat slogans:
89 percent of Montana homeowners received real relief.
Only 11 percent – mainly high value vacation homes – pay more.
The median Montana resident occupied home received a $1,283 decrease after the $400 rebate.
Median commercial properties saw a reduction of about $415.
As the Freedom Caucus and their local surrogates repeat their falsehoods, slander, and name-calling, ask them to explain how raising property taxes on Montana Residents to benefit personal and out-of-state interests is conservative. When someone tells you HB 231 and SB 542 were a “tax shift,” they were — a shift back to fairness and common sense.
As always, I welcome your questions and input. It’s an honor to serve you.
