After extensive debate about various proposals in the waning hours of the Montana State Legislature, the body passed two tax bills: House Bill 231 and Senate Bill 542. More so than tax cuts, amid claims that the new law is complicated, legislators said the new law will “rebalance” the state’s property tax system.

It shifts higher taxes onto business properties and second homes.

Having passed so late in the session, implementing the new law this year is not possible, so legislators added interim rates and a $400 rebate to serve until next year.

 Rep. Llew Jones, (R) Conrad, who introduced the bill, said that it will significantly reduce taxes for owner-occupied homes and long-term rental properties. How much they will experience a tax reduction depends upon what local governing entities, cities and towns, set as budgets. Properties not determined to be primary homes or long-term rentals are likely to see substantial tax increases.

The new law will lower the value of a property used in calculating its tax. The rate or percentage of value that must be paid in taxes, however, can be changed based upon what kind of property it is, which allows the tax burden to be shifted to a different class of property. Higher rates of taxation will be applied to business and agricultural properties.