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2025 LEGISLATIVE SESSION Montana League of Cities and Towns ---PAGE BREAK--- Revenue and Finance – SB 542/HB 231 Fiscal Year Primary Residence Long-Term Rental Second Residence Short-term Rental Ag SF Residential Residential Residential Residential Commercial and Industrial All values All values First MHV MHV to $400k $400k to <2x MHV 2x MHV to <4x MHV 4x MHV to $1.5m >$1.5 million or >4x MHV All values All values All values First $400k/ Up to 6x Median Value >$400k/ >6x Median Value 2025 2.16% 1.35% 1.35% 1.35% 1.35% 1.35% 1.89% Same as SF values Same as SF values Same as SF values 1.89% 1.89% 2026 2.05% $400 Rebate .76% .76% 1.1% 1.1% 1.1% 2.2% Same as SF value rates; if MF over $2m 1.89% Same as SF value rates; if MF over $2m 1.89% Same as SF value rates; if MF over $2m 1.89% 1.4% 1.89% 2027 2.05% .76% 1.1% 1.9% 1.9% SF same as value rates; MF 1.1% 1.9% 1.9% 1.5% 1.9% 2028 2.05% .76% 1.1% 1.9% 1.9% SF same as value rates; MF 1.1% 1.9% 1.9% 1.5% 1.9% ---PAGE BREAK--- Revenue and Finance HB 20 – Voted levies in dollars Voted levies must be stated in dollar amounts rather than in mills, authorizes voters to allow it to increase by 15-10-420 inflationary factor. (Eff Oct 1, 2025) ---PAGE BREAK--- Revenue and Finance SB 117 – Revisions to 15-10-420 - Changes the calculation for local general fund mills under 15-10-420: Use full inflation up to 4% (average rate from prior 3 years) Reduces newly taxable in each class of property 75% of Class 4 residential and commercial 40% of all other classes Authorizes “large taxpayer reserve account” with additional 10% from “all other classes” in the event of a large taxpayer ceasing operations or experiencing a significant decrease in taxable value. (Eff tax year 2026 and thereafter) ---PAGE BREAK--- Tax Increment Financing HB 19 – Hearing before bonding - Public hearing before bonding beyond year 15 with notice to other taxing jurisdictions in the URA or TEDD. (Applies to the pledge of tax increment to the payment of bonds on or after 2-27-25) SB 3 – Membership of URA and TEDD advisory board – Modifies the membership of an board of commissioners or advisory committee to a URA or TEDD. Minimum of 5 members, must include a representative from county and school district. No maximum member requirement. Eff. 10-1-2025, unless it is a URA under 7-15-4234 then at URA board of commission vacancy or next appointment by mayor. ---PAGE BREAK--- Tax Increment Financing SB 1 – Definition of Blight - Modernizes the definition of blight Removes outdated references to morals, disease, ill health, menace, etc. Requires at least 3 conditions to establish blight Removes bad planning, title issues, faulty lot layout, overcrowding, and inappropriate mix of uses as grounds for blight Does not affect eligible expenditure of funds Eff. 4-03-2025 ---PAGE BREAK--- Land Use and Planning HB 492 – Minimum Parking Requirements – Cannot require any parking spaces for: child-care facilities; deed-restricted affordable housing units; assisted living facilities; or existing or vacant buildings undergoing a change of use. HALF a parking space for residential units under 1,200 sf* ONE parking space for each residential unit over 1,200 sf *MLUPA cities – NO parking spaces for any residential units under 1,200 square feet (Eff October 1, 2026) ---PAGE BREAK--- Land Use and Planning SB 252 – Manufactured and Factory-Built Housing - Codifies caselaw that municipal and county zoning regulations treat manufactured and factory-built housing the same as stick-built housing. (Eff. 10-1-25) ---PAGE BREAK--- Land Use and Planning SB 553 – Generally revise state policy laws Prohibits airplane carriers from terminating travel credit Additional components Changes energy and telecommunications interim committee to the energy and technology committee Prohibits food service establishments from preparing and serving fresh kratom products for consumption on premise Authorizes latecomer agreements; restricts ability of local governments to require land dedication for parks and recreation as condition of subdivision approval ---PAGE BREAK--- Land Use and Planning SB 213 – Single-stairway building code Allows certain residential buildings classified as group R-2 occupancy to have a single stairway serving as an exit for all units. This provision applies under specific conditions: the building must have no more than six stories above grade, contain no more than four dwelling units on one floor, be equipped with an automatic sprinkler system, and each unit must have at least one window or other emergency exit provision. (Eff. 10-1-25) SB 33 – State buildings reviewed by state building code department Provides that all state buildings shall be reviewed by state building code officials, not local certified municipalities (Eff. 10-1-2025) ---PAGE BREAK--- Land Use and Planning SB 404 – Report building permits to DOR Requires local governments to send copies of building and electrical permits for new construction to the Department of Revenue within 90 days of the permit's issuance. (Eff. Date 10-1-25) HB 427 – Provide citation for delay or stop work order Municipality must provide the text or citation of specific sections of the building code causing a delay of a completed application or stop work order. Must provide within 7 business days of request Penalty of $50 for each day beyond the response period until provided Does not apply to “standard review period” (Eff. Date 10-1-25) ---PAGE BREAK--- Infrastructure/Housing HB 505 – Housing Infrastructure - Programs (Eff. Date 5-13-2025) 1) Extends and expands the Housing Infrastructure Revolving Loan Fund from 2023 $106m appropriation for residential development at 10 units/acre with affordability provisions $50m appropriation for residential development at 3 units/acre ---PAGE BREAK--- Infrastructure/Housing HB 505 – Programs 2) New program to provide loans from interest earnings on the RLF for resident-owned cooperative to purchase or refinance their mobile home park or to a multifamily-owned cooperative to purchase or refinance their apartment complex. 3) New program to purchase 50% of bond issued by local government for 25% of lender’s loan rate if 30% of development preserved for long-term affordability by: Deed restrictions, regulatory agreements, or restrictive covenants filed with respect to the property, Low-Income Housing Tax Credits, or Community Land Trust ---PAGE BREAK--- Infrastructure/Housing HB 505 – Programs 4) New bond guarantee program for local government SIDs City creates SID for new development infrastructure and issues bond Developer uses funds to expand or extend water, wastewater, stormwater, street, road, curb, gutter, or sidewalk infrastructure to development BOI provides bond guarantee in an amount equal to the entity’s reserve fund deficiency, not to exceed $10 million per bond as follows: Up to $70.3 million for projects at 10 units/acre density and affordability provisions Up to $33.3 million for projects at 3 units per acre density ---PAGE BREAK--- Infrastructure HB 346 – MEPA exemption Exempts historic preservation program grants and other economic development grants at Department of Commerce from environmental review. (Eff. 7-1-2025) ---PAGE BREAK--- Public Safety Services SB 398 – Municipal Courts Increases the monetary cap for municipal court cases from $25,000 to $50,000. (Eff. 10-1-2025) HB 56 – Ambulance Service Fees Ambulance Special Assessment Fee program created that increases Medicaid payments for ambulance services. The bill establishes an Ambulance Medicaid Reimbursement Special Revenue Account. Ambulance providers will pay the 5.75% fee, which will be reported and matched with Medicaid payments and returned to certain ambulance providers as a supplemental payment. (Eff when approved by DHS) ---PAGE BREAK--- Local Decision-making HB 791 – Public Nuisance Modifies the definition of public nuisance (27-30-101, MCA) and creates a new definition of private nuisance in state statute. The bill also specifies actions that cannot be considered public nuisances, such as lawful activities authorized by government entities. outlines the procedures for public nuisance actions by government entities and private individuals, including the criteria for establishing standing in such cases. Specifically does not preempt local public nuisance laws. (Eff. 10-1-2025) HB 642 – Camping as a Public Nuisance Modifies public nuisance laws (45-8-111, MCA) to explicitly classify camping in violation of a city ordinance or statute as a public nuisance. (Eff. 10-1-2025) ---PAGE BREAK--- Local Decision-making HB 38 – Disability Parking Revise laws related to disability parking by increasing penalties for violations and establishing stricter regulations against fraudulent activities concerning disability parking accommodations. A person who parks in violation of designated disability parking regulations will face fines ranging from $150 to $250 for a first offense and $250 to $500 for subsequent offenses, unless they can show evidence to the contrary within 3 business days. (Eff 10-1- 2025) ---PAGE BREAK--- Questions ? Jennifer Olson [PHONE REDACTED] [EMAIL REDACTED] Montana League of Cities and Towns - Montana League of Cities and Towns www.MTLEAGUE.ORG