Big Savings Ahead? Montana’s Push for Property Tax Relief
By: Brady Thomas Rice
Property taxes in the U.S. have surged alongside rising home prices, worsening affordability concerns. While homeowners nationwide struggle with these costs, Montana lawmakers are considering a bill to cut property taxes on primary residences, potentially shifting the tax burden.
Why This Matters
From 2019 to 2024, property taxes rose exponentially in U.S. metropolitan areas. Redfin reports that Indianapolis saw a 66.7% increase, with Atlanta coming in just behind at 65.8%. Tampa and Jacksonville saw increases of nearly 60%. Montana has followed this trend, but its legislators are now working to ease the burden on primary homeowners.
Understanding House Bill 231
House Bill 231 (HB 231), part of a broader initiative by Montana Governor Greg Gianforte, aims to provide tax relief to full-time residents. Introduced by Rep. Llew Jones, the bill proposes a 17% property tax reduction for approximately 230,000 Montana homeowners while increasing taxes on secondary residences, including vacation homes and short-term rentals. The tax hike for non-primary homes—around 53% – ensures that out-of-state property owners contribute more to state infrastructure and services.
The Rise of Secondary Homes
The push for tax reform coincides with an influx of second-home buyers in Montana. During the pandemic, secondary homes accounted for 20% of all home sales in 2021, according to Realtor.com. While that percentage has declined, it remains above pre-pandemic levels, impacting local affordability. HB 231 seeks to address this shift by prioritizing relief for full-time residents.
Legislation: HB 154
Another substantial proposal, House Bill 154 (HB 154), introduced by Rep. Jonathan Karlen, would establish a “housing fairness” income tax credit for renters and homeowners earning up to $150,000 annually. Combined with HB 231, this would provide additional economic assistance.
What’s Next?
Both HB 231 and HB 154 are under review by the Montana State Senate Taxation Committee. If passed, they will move to the governor’s desk for final approval. Supporters argue that these bills ensure a fairer tax distribution while benefiting full-time residents and small businesses.
A Positive Step Forward
If enacted, HB 231 and HB 154 could reshape Montana’s property tax system, offering much-needed relief to homeowners while ensuring a fairer distribution of the tax burden. These efforts highlight Montana’s commitment to keeping homeownership attainable and communities strong. As these bills move forward, residents across the state remain hopeful for a future with a more balanced and manageable tax structure.
About Brady Thomas Rice
Brady Thomas Rice is the President and Founder of The BTR Group, Inc., a firm specializing in international executive management services focused on capitalizing, developing, restructuring, and operating commercial real estate assets in complex markets. With two decades of experience, Mr. Rice is a seasoned expert in the real estate industry. He is currently leading and advising on projects in multiple jurisdictions across the US Mountain West including Montana, Utah, and Colorado along with international destination markets including Baja California Sur, Mexico and Canada.
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