Revise allocation of the insurance premium tax to fund property tax relief
Summary
HB 892 revises how certain insurance-related revenue is allocated in Montana. The bill amends section 33-2-708, MCA, to direct the commissioner of insurance to transfer $10 million at the end of each fiscal year from money collected under 33-2-705 to the state property tax assistance account, rather than leaving all of that revenue in the general fund or other existing destinations. The measure is framed as a property tax relief bill, using insurance premium tax revenue to help finance state property tax assistance.
The bill also includes a $50,000 general fund appropriation to the Department of Revenue for the 2025-2027 biennium to implement Senate Bill No. 90, and it is expressly contingent on SB 90 passing and being approved. If SB 90 does not become law, HB 892 becomes void. The bill takes effect immediately upon passage and approval.
Impact
HB 892 would change the statutory disposition of insurance tax revenue by carving out a new annual transfer of $10 million to the state property tax assistance account, affecting the flow of funds under Title 33 and the state budget. It would also create a small implementation appropriation for the Department of Revenue and tie the bill’s operation to another measure, Senate Bill No. 90, making the bill part of a broader property tax relief package rather than a standalone revenue change.
Sentiment
The available voting history suggests the bill did not advance: it was tabled in the House Taxation Committee by a 21-0 vote and later died in process. That outcome indicates little recorded opposition in the committee vote itself, but also no momentum to move the bill forward. With no committee transcript available, the public record here shows procedural defeat rather than a contested floor debate.
Contention
The main policy issue is the use of insurance premium tax revenue for property tax relief instead of other state purposes. Supporters likely viewed the transfer as a way to dedicate an existing revenue source to easing property tax burdens, while any concerns would center on diverting funds from the general fund or other state priorities and on the bill’s dependence on SB 90. The coordination clause also creates a point of contention because HB 892 cannot stand alone; its effectiveness depends on another bill becoming law.
Reducing insurance company premium tax rates and discontinuing remittance and crediting of a portion of the premium tax to the insurance department service regulation fund.
Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)