Montana House Bill HB461

Montana 2025 Regular Session

• Introduced: 2/12/25
• Refer: 2/12/25
• Failed: 5/20/25

Caption

Provide exemption for certain owner-occupied residential property owned by persons 67 or older

Summary

HB 461 would create a property tax exemption for certain class four residential property owned and occupied as a primary residence by a taxpayer who is 67 years of age or older and who has owned the property for at least five years. The exemption would generally shield the increase in market value above the property's base-year value, effectively freezing property tax liability on appreciation for qualifying senior homeowners. The bill sets out eligibility and administration rules. The property must be the owner's primary residence, with the owner living there at least seven months of the year and claiming no other residence for the exemption. The exemption would end if the property is sold or if there is new construction, remodeling, or reclassification, though owners could reapply and establish a new base year after such changes. Applications would be filed with the Department of Revenue, which could verify eligibility, investigate claims, and apply false swearing penalties for inaccurate information.

Impact

HB 461 would amend Montana property tax law by adding a new exemption within Title 15, chapter 6, part 2 for qualifying senior homeowners. It would reduce taxable value growth for eligible owner-occupied residences, shifting some property tax burden away from long-term homeowners age 67 and older and potentially reducing local government property tax collections on those properties. The bill would apply to property tax years beginning after December 31, 2025.

Sentiment

The available voting history suggests the bill had some support in committee-related action, as a motion to table it failed on a 21-0 vote, indicating no recorded support for setting it aside at that stage. However, the bill ultimately died in process, which suggests it did not advance through the full legislative process despite that initial vote. No committee transcript is available, so the broader discussion record is limited.

Contention

The main policy issue is whether to provide targeted property tax relief to older homeowners who have owned and occupied their homes for at least five years. Supporters likely view the measure as a way to help seniors remain in their homes by limiting tax increases tied to rising property values. Potential concerns include reduced tax revenue for local governments, the age- and tenure-based limits on eligibility, and administrative questions about verifying primary residence status and handling exemptions after remodeling, reclassification, or sale.