By Clayton Murphy | UM Legislative News Service, University of Montana School of Journalism
Property Tax Bills Head to Governor
HELENA — Two major property tax relief bills passed on April 30, ultimately putting an end to the 69th Montana Legislature — but not without fiery pushback from hard-line Republicans and charged debates in the Senate.
Property tax reform was one of the biggest issues facing lawmakers this session. In the last three days of the session, just two bills addressing property tax remained: Senate Bill 542 and House Bill 231. As they rounded the final corner, Rep. Bill Mercer, R-Billings, called for one final adjournment in the House. But the Senate held on, voting down two motions to adjourn before finally agreeing to end the session.
Sen. Daniel Zolnikov, R-Billings, said the legislature could not adjourn having passed what he called convoluted property tax reform. He said most Senators did not know what they were voting for.
“Within 15 minutes of the first day, this session was off the rails. And within the last 85 days, this Senate has not done its job. Our property tax relief is a failure,” Zolnikov said. The motion to end the session passed the Senate 34-16.
The two coordinated bills give rebates for primary residences and reduce residential property taxes by raising taxes on second homes, short-term rentals, business and agricultural properties.
Both bills drew bipartisan support but opponents were vocal, criticizing both the policy in the bills and the changes made in the last days of the session. Sen. John Fuller, R-Kalispell, said the process that created the final version of House Bill 231 did not follow the rules of the Legislature.
“This is an unconstitutional bill,” Fuller said. “It is a violation of our rules, and additionally, no matter what lipstick you put on this pig, it is a tax shift. It’s not property tax reform. It’s a tax shift.”
Sen. Becky Beard, R-Elliston, said she worries these bills will increase expenses for businesses across Montana.
But Minority Leader Pat Flowers, D-Belgrade, said the bills will deliver tax relief to the Montanans who need it most.
”To tell you the truth, I’m kind of stunned that we’re arguing against cutting property taxes for residents of Montana. That’s what we came here to do,” Flowers said.
Both bills will head to the governor’s desk for final decisions. Lawmakers will return to Helena in 2027 unless they call for a special session—a possibility considering the disagreement on the property tax restructure and continuing anxiety about federal funding.
Two Bills Pass to Direct Marijuana Tax Revenue
HELENA — It’s now up to Montana Gov. Greg Gianforte to pick between two conservation-focused models for distributing state marijuana revenue—an account that drew in nearly $60 million in 2024.
Billings Republican Sen. Daniel Zolnikov’s Senate Bill 537 allocates 31 percent of that fund to law enforcement grants and 14 percent to a state behavioral health and disabilities program. Twin Bridges Republican Rep. Ken Walsh’s House Bill 932 sends the money to the state’s general fund.
The original ballot measure that Montana voters approved in 2020 included setting aside revenue for “conservation programs, substance abuse treatment, veterans’ services, healthcare costs, and localities where marijuana is sold.”
Great Falls Republican Sen. Jeremy Trebas argued that under Walsh’s bill, general fund money would be better spent on law enforcement and education.
“I think Montanans would appreciate this money being used—I’ve heard this a lot—being used to fund the things that our property taxes go towards first,” Trebas said.
Both new models set aside 20 percent to a newly created “habitat legacy account,” which would fund the improvement and purchase of wildlife habitat land, state water projects and other conservation projects that involve public access.
In the past, that same 20 percent was sent to Fish, Wildlife and Parks for the sole purpose of buying and maintaining wildlife habitat. In support of HB 932, Senate Minority Leader Pat Flowers of Belgrade said this change helps better protect those habitats.
“This gives us an opportunity to address things like insects and disease and weed control that go across those property lines,” Flowers said.
Both bills also direct tax revenue to a state fund that supports addiction-focused behavioral health programs across the state. The program is currently capped at $6 million in marijuana revenue funding—Walsh’s bill would change that to 11 percent of the marijuana fund, and Zolnikov’s would cap it at 12 percent.
Lawmakers Proposed Record Number of Study Bills in 2025 Session
HELENA — In two years, the next Montana Legislature will reconvene in Helena. But before then, the 2025 legislature asked for studies on everything from farmers’ markets to changing the date of primary elections. In total, lawmakers have proposed 80 different study bills in 2025. That’s 42 percent more than the 10-session average of about 56.
In the waning days of the session, both the House and Senate agendas have been jam-packed with study bills. Sen. Dennis Lenz, R-Billings, said that could be because these bills serve as tools to help pass future versions of bills that died this session. But the motivation, and often staff capacity, to get those bills to committees doesn’t usually come until late into the session.
“Study bills are kind of an odd duck because they really, honestly, physically can’t come earlier in the session because there’s all these important bills that drafters and staff are working on,” Lenz said.
He said this session’s high volume could also be attributed to last year’s votes on study bills—just seven of the 52 total proposed bills passed. In the 2025 session, 38 of the 80 study bills passed.
Responding to another senator’s critique of the volume of study bills late in the session, Sen. Andrea Olsen, D-Missoula, said she supported the trend.
”I actually thought that was one of the most exciting changes we saw this session, that people really want to study real problems and maybe come up with really significant solutions for next session,” Olsen said.
Clayton Murphy is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu.
