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Montana Governor Greg Gianforte’s signature property tax relief bill is facing mounting opposition in the state legislature, as competing proposals gain traction among lawmakers and business groups.
House Bill 231 (HB 231), sponsored by Rep. Llew Jones (R-Conrad), seeks to lower property taxes for homeowners and landlords while increasing taxes on second homes and short-term rentals like Airbnbs. The measure, developed through the governor’s property tax task force, is Gianforte’s key response to skyrocketing residential property taxes, which surged by 21% between 2022 and 2023 and could climb another 11% due to this year’s reappraisal cycle.
Rival Proposal Gains Momentum
Despite its high-profile backing, HB 231 is facing stiff competition from House Bill 528 (HB 528), a more simplified tax cut proposal led by Rep. Ed Byrne (R-Bigfork). Byrne’s bill reduces tax rates across residential, commercial, and agricultural properties to offset rapid valuation increases, an approach reminiscent of Democratic challenger Ryan Busse’s 2024 campaign tax plan.
Unlike Gianforte’s targeted approach, HB 528 has quietly gained bipartisan support among conservative Republicans and Democrats.
“Him and the governor are dead set—they want [HB] 231 and nothing else,” Byrne said Sunday.
Jones, a central figure in Montana’s tax policy debates as chair of the House Appropriations Committee, warned business lobbyists in a weekend email that HB 528 appears to be the legislature’s preferred tax relief measure.
“I am comfortable moving forward in this direction if that’s the general agreement, although I believe [HB] 231 was more beneficial for almost all groups,” Jones wrote.
Business Concerns and Legislative Jockeying
Business groups are divided over the competing bills. Jones argues that HB 528’s across-the-board tax rate reductions would disproportionately shift the burden onto industrial, farm, and small business properties—particularly in rural areas with slower home price growth.
According to an analysis requested by Jones from the Montana Department of Revenue, HB 528 would hike taxes on industrial properties by 24% on average next year. The Phillips 66 refinery in Billings, for example, would see an estimated $3.8 million tax increase, while Calumet’s Montana Renewables biofuel refinery in Great Falls could face a $1.9 million hike.
“There are certainly nasty bites in some counties for key businesses, so I was a bit surprised that this is the chosen bill,” Jones wrote to lobbyists. He also urged industry leaders to actively oppose HB 528.
Despite Jones’ efforts, HB 528 has advanced with overwhelming support, passing its initial House vote 90-9 on March 21 and encountering minimal opposition in committee hearings.
Meanwhile, Senate Taxation Committee Chair Greg Hertz (R-Polson) signaled concerns over both proposals, particularly the second-home tax increase embedded in HB 231.
“I don’t see anything right now that has broad-based support on either side of the aisle,” Hertz said.
What’s Next for Montana Property Tax Reform?
With the session scheduled to conclude by early May, lawmakers remain locked in debate over how best to deliver tax relief.
House Minority Leader Katie Sullivan (D-Missoula) suggested HB 231 is struggling to gain traction in the Senate.
“Legislators and lobbyists are looking to other tax bills in the building to see what’s available,” she said.
Byrne warned that legislative inaction could strengthen efforts to place a property tax cap initiative on Montana’s 2026 ballot. Previous versions of the initiative faced fierce opposition from unions and business groups, who argued it would destabilize funding for schools, law enforcement, and local governments.
“If the Legislature doesn’t pass significant property tax relief, I think every person I know will sign that initiative regardless of how bad it is,” Byrne said.
As competing proposals battle for support, Montana homeowners and businesses remain uncertain about how their tax burdens will change in the coming years.
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