After heated debate, a bill that will lower property taxes for primary residences while raising taxes for second homes and short-term rentals awaits final approval from the House before hitting Gov. Greg Gianforte’s desk.
House Bill 231 is one of a series of property tax bills 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.”
Lawmakers Consider Study on Federal Funding Changes to Health and Human Services Department
As federal headwinds continue to swirl, state legislators are considering a study on how shifting funding will affect Montana’s largest state agency, the Department of Public Health and Human Services.
House Resolution 66, proposed by Rep. SJ Howell, D-Missoula, would set aside time before the next Legislature convenes in 2027 to examine the impacts of federal funding changes to the healthcare system. Howell said the study is a proactive step to address the turbulent federal climate. Federal funding makes up 68.3% of the Montana DPHHS budget and either fully pays or partially pays for more than 2,000 full-time equivalent positions in the agency, according to the bill.
“I think that this is responsive to a new landscape at the federal level, and that it’s worth us … being proactive and really articulating as a Legislature that we want to make sure this is done,” Howell said.
Three people spoke in support of the resolution at a committee hearing last week, including Ingrid Lovitt, Director of Government Relations at Shodair Children’s Hospital. She said Shodair is highly dependent on federal funds, and the study will address possible changes in a proactive way.
“Shodair served children from 56 of 56 Montana counties last year, and often those children are coming to us straight from the emergency room or straight from other environments where we are the only place for them to go,” Lovitt said. “Without our facility, those children could be very easily sent out of state.”
HJ 66 passed the House 58-42 on Friday, and awaits judgement in the Senate.
The House of Representatives is advancing legislation that will create a study of early literacy rates in Montana’s children, a move proponents say will help address low rates of reading proficiency in young kids.
Rep. Linda Reksten, R-Polson, said House Resolution 63 will provide data to inform the next Legislature about whether early literacy intervention programs created in 2023 and 2025 are working.
“The reason to follow this data is because we can make the strongest improvement in our student achievement in accessing skills of reading and math if we follow this data because it will set children up to be successful in upper elementary, middle and high school, and that’s where we see the dire effects when kids are not proficient and can’t read or do math,” Reksten said.
Sarah Froehlke, a policy analyst at Zero to Five Montana, spoke in support of the bill at a committee hearing earlier in the week. According to Zero to Five Montana, 46% of Montana kids are reading at or above grade level.
“This bill provides an opportunity to look at early learning in Montana and find opportunities for improvement for our families and youngest learners,” Froehlke said.
There were no opponents at the committee hearing. HJ 63 passed the first House vote 78-22, and awaits a final vote before moving to the Senate for debate.
