HELENA, Mont. — Two major property tax relief bills passed Wednesday, ultimately putting an end to the 69th Montana Legislature — but not without fiery pushback from hard-line Republicans and charged debates in the Senate.
Property tax reform was one of the biggest issues facing lawmakers this session. In the last three days of the session, just two bills addressing property tax remained: Senate Bill 542 and House Bill 231. As they rounded the final corner, Rep. Bill Mercer, R-Billings, called for one final adjournment in the House. But the Senate held on, voting down two motions to adjourn before finally agreeing to end the session.
Sen. Daniel Zolnikov, R-Billings, said the legislature could not adjourn having passed what he called convoluted property tax reform. He said most Senators did not know what they were voting for.
“Within 15 minutes of the first day, this session was off the rails. And within the last 85 days, this Senate has not done its job. Our property tax relief is a failure,” Zolnikov said. The motion to end the session passed the Senate 34-16.
The two coordinated bills give rebates for primary residences and reduce residential property taxes by raising taxes on second homes, short-term rentals, business and agricultural properties.
Both bills drew bipartisan support but opponents were vocal, criticizing both the policy in the bills and the changes made in the last days of the session. Sen. John Fuller, R-Kalispell, said the process that created the final version of House Bill 231 did not follow the rules of the Legislature.
“This is an unconstitutional bill,” Fuller said. “It is a violation of our rules, and additionally, no matter what lipstick you put on this pig, it is a tax shift. It’s not property tax reform. It’s a tax shift.”
Sen. Becky Beard, R-Elliston, said she worries these bills will increase expenses for businesses across Montana.
But Minority Leader Pat Flowers, D-Belgrade, said the bills will deliver tax relief to the Montanans who need it most.
”To tell you the truth, I’m kind of stunned that we’re arguing against cutting property taxes for residents of Montana. That’s what we came here to do,” Flowers said.
Both bills will head to the governor’s desk for final decisions. Lawmakers will return to Helena in 2027 unless they call for a special session — a possibility considering the disagreement on the property tax restructure and continuing anxiety about federal funding.
Clayton Murphy is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu.