Montana legislation · 2025 Regular Session
Montana HB489: Revise sales tax laws to provide for local option tax
Status: Failed, May 20, 2025
What the bill says
A bill for an act providing for the local option property tax relief act; providing for a local option tax; authorizing certain local governments by vote of the electorate to adopt a local option tax; providing that the local option tax revenue must be used for property tax relief for primary residences and long-term rentals; providing that a portion of the revenue is distributed to local governments that do not levy a local option tax; providing for distribution of a portion of lodging and rental car sales tax revenue to a local government that levies a local option tax…
From the engrossed text:
A BILL FOR AN ACT PROVIDING FOR THE LOCAL OPTION PROPERTY TAX RELIEF ACT; PROVIDING FOR A LOCAL OPTION TAX; AUTHORIZING CERTAIN LOCAL GOVERNMENTS BY VOTE OF THE ELECTORATE TO ADOPT A LOCAL OPTION TAX; PROVIDING THAT THE LOCAL OPTION TAX REVENUE MUST BE USED FOR PROPERTY TAX RELIEF FOR PRIMARY RESIDENCES AND LONG-TERM RENTALS; PROVIDING THAT A PORTION OF THE REVENUE IS DISTRIBUTED TO LOCAL GOVERNMENTS THAT DO NOT LEVY A LOCAL OPTION TAX; PROVIDING FOR DISTRIBUTION OF A PORTION OF LODGING AND RENTAL CAR SALES TAX REVENUE TO A LOCAL GOVERNMENT THAT LEVIES A LOCAL OPTION TAX; PROVIDING DEFINITIONS; PROVIDING A STATUTORY APPROPRIATION; PROVIDING RULEMAKING AUTHORITY; AMENDING SECTIONS 2-7-503, 15-65-112, 15-68-502, 15-68-820, 17-7-502, 22-3-1303, 22-3-1304, AND 22-3-1307, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: NEW SECTION. Section 1. Short title. [Sections 1 through 10] may be cited as the "Local Option Property Tax Relief Act". NEW SECTION. Section 2. Local option tax -- definitions. As used in [sections 1 through 10], the following definitions apply: (1) "Governing body" means the governing body of a consolidated city-county or a county in which a local option tax is proposed or approved. (2) "Grooming and hygiene products" means soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, feminine hygiene products, and …