By Emma White | UM Legislative News Service, University of Montana School of Journalism

HELENA – After heated debate, a bill that will raise property taxes for second homes and short-term rentals while lowering taxes and providing abatements for long-term rentals and primary residences passed the first vote in the Senate on April 22 of 26-24.

The Senate will take a final vote on HB 231 on April 24, and if it passes it will return to the House for deliberation. HB 231 is one of a series of property tax bills that are up for debate this week as lawmakers count down the days to the end of the legislative session.

Sen. Shane Morigeau, D-Missoula, said Montana’s housing crisis needs attention and House Bill 231 could help mitigate the impacts of out-of-state owners who profit off of property in Montana while taking up needed housing.

“We’re trying to encourage people to open their homes up to Montanans who need it,” Morigeau said. “And coming up with this structure was one way to encourage homeowners to provide rentals for longer-term rentals for Montanans who actually need it.”

But Sen. Barry Usher, R-Yellowstone County, said HB 231 is unfair to Montanans who have family cabins with long histories, who rent out parts of their homes, or who have jobs that keep them away from their homes.

“Especially in rural communities, land is often more than just a financial asset. It’s intricately tied to a family,” Usher said. “When people spend years saving up and building a small cabin for their folks on the back of the end of their property, they get hurt by this bill.”

Emma White is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association and the Greater Montana Foundation. White can be reached at emma.white@umconnect.umt.edu