Inside The House: The Last Week

As the 69th Montana Legislature enters its final days, several major policy victories are headed to the Governor’s desk. A motion for Sine Die (closure of the session) is expected either today or tomorrow.

Historic Income Tax Reduction

Montana taxpayers will benefit from a historic tax cut income tax cut, signed into law on Monday. HB 337, sponsored by Speaker Brandon Ler, reduces the top income tax rate from 5.9% to 5.4% over the next two years while expanding eligibility for the lower bracket. This reform rewards work and eases the burden on Montana families and small businesses. With a reduction of $755.9 million from the general fund by 2029, the bill reflects a long-term commitment to economic competitiveness, individual freedom, and less government. It was a privilege to co-sponsor this initiative, critical to Montanans struggling to navigate the dramatic inflationary increases of recent years.

Property Tax Relief Nears the Governor’s Desk

Rising property tax bills are a top concern from residents across the state. This session, lawmakers responded with a comprehensive approach to property tax relief and reform. The following are highlights from distinct categories that the Governor has signed this session, or a signature is still anticipated.

• House Bill 483 – The Right Back Act (Sprunger): Delivers $50–$60 million in property tax relief in the first year, beginning this fall while reaffirming the 95 school equalization mills — a critical pillar in Montana’s education funding model. This legislation ensures substantial, long-term relief without compromising support for public schools. Relief will continue to increase as property values rise - within 10 years, this bill is anticipated to be pushing back $100 million annually in returns.

  
  

• House Bill 231 – The Homestead Exemption (Jones): In the Flathead, if passed, this bill will provide a 25-30 percent reduction on a primary residence property tax bill by the second year of implementation; this bill also provides relief for long-term rentals and small commercial properties.

  
  

• Senate Bill 177 (D. Zolinkov): Reforms the way state mills interact with local levies by requiring that state tax reductions be passed directly to taxpayers, preventing windfalls to taxing jurisdictions and restoring transparency in property tax collections.

  
  

• House Bill 20 (Brewster): Changes tax bill language from “mills” back to dollars to make it easier for the average person to understand how much government is spending and the real cost of voted levies.

  
  

• Senate Bills 1 and 2 (Hertz): This pair revises how Tax Increment Finance (TIF) zones operate, revising the definition of blighted land and setting stronger perimeters for newly taxable properties.

The State Budget

House Bill 2, the state’s primary budget bill, passed this week following extensive amendments. The $8.4 billion budget reflects strategic investments in public safety, education, and infrastructure. However, concerns remain regarding the overall size of the package, particularly after additions made in the Senate. Several members of the legislature have called on the Governor to use the line-item veto to curb excess spending and return more of the state’s surplus to the people, which may be necessary to ensure a balanced budget and meet both constitutional requirements and commonsense governing.

On your behalf, I have carried fourteen bills - twelve have successfully cleared both chambers. The following are a few highlights:

• HB 483 The Right Back Act – Outlined above, The Right Back Act is poised to be the first major property tax relief and reform bill signed by the Governor. A special thank you to the Frontier Institute, Montana School Board Association for their work, and bill drafter Pad McCracken who invested hours to craft and support this policy.

  
  

• HB 592 – REINS Lite: Based on tenants from the federal conservative REINS Act from Congresswoman Kat Cammack, Montana’s REINS Lite restores legislative oversight to significant agency rulemaking and protects small businesses from regulatory overreach. Commissioner Sarah Swanson, Director Chris Dorrington, and Americans for Prosperity were key in this policy’s creation; without them, this bill would not have been possible.

• HB 226 – LEGAL Act: Strengthens employment verification requirements and cracks down on the use of illegal labor to protect Montana jobs and fight labor trafficking.

• HB 672 – Smooth Move Program: Addresses costly delays for road construction by holding utilities accountable for timely relocations in the highway right-of-way, which will save Montana taxpayers millions in the years to come. Gratitude goes to Flathead Electric Cooperative, Northwestern Energy, Montana Contractors, and MDT for their collaboration and willingness to work together in service of Montana.

• HB 568 – Montana Hunters First Act: Montanans are tired of seeing their favorite hunting sites packed with out of state plates; their effort increasing as success declines. This act commissions a statewide study of crowding and public land access, ensuring residents are at the forefront of hunting policy decisions.

  
  

Montanans have asked for lower taxes, safer streets, and less government. That work continues through the session’s final days — but the foundation for a stronger future for Montana is taking form.