2025 Legislative Session   

CALL TO ACTION!

Montana Water Users—your voice is needed NOW!

The Montana Senate is set to vote on SB 358, and we must take action to STOP THIS BILL. 

While your calls made a difference before, the Senate Natural Resources Committee amended the bill instead of rejecting it. 

Now, we need ALL Montana Senators to vote NO. 

Deadline: Make your calls before Monday, March 31st!

Here’s what you can do RIGHT NOW:

📞 Call your Senator—phone calls have the biggest impact! (Email is a backup, but less effective.)

📌 Spread the word—ask your employees, customers, and suppliers to take action too. This bill will negatively impact everyone.

🔗 Get the details you need:

• SB 358 Overview
• Talking Points
• Phone Call Script
• Aquifer Closure & Monitoring Area Maps
• Full Bill Text
• Find Your Senator's Contact Info

Every call counts—let’s make sure Montana’s Senators hear us loud and clear. Tell them: VOTE NO on SB 358!

Montana Association of REALTORS® Legislative Session Update: Mid-Session Recap - March 12, 2025

At the end of the first half of the 2025 Montana Legislative Session, the Montana Association of REALTORS® (MAR) has been actively engaged in several key issues that impact both property rights, affordable housing and future development across the state.

Water Legislation: We have been heavily involved in the effort to oppose and amend SB358, a bill that would severely restrict exempt well use in areas of Montana, including the Helena, Gallatin, Bitterroot, and Missoula valleys. This bill, if passed, would impact new development by prohibiting exempt well water use in these regions. In collaboration with the well drillers and builders, we’ve rallied against the bill, supporting a data-driven approach using the Bureau of Mines and Geology's scientific research to manage water resources effectively. The bill was amended in the Senate Natural Resources Committee to add a fee, which makes it a revenue bill and extends the deadline to transmit the bill to the House. (This is a common tactic to buy more time to get a bill through the process.) We also supported HB704, which mirrors the amendments we recommend to SB358 for a more balanced, science-based approach. Though HB704 passed the House Judiciary Committee, it ultimately failed on the House floor, showing potential challenges for SB358moving forward.

Another important water bill, SB436, proposes limiting exempt well water use to 0.5 acre-feet per acre up to 20 acres. Parcels that exceed 20 acres would receive a maximum of 10 acre feet. This simpler measure passed both the Senate Natural Resources Committee and the Senate floor and now moves to the House. We are continuing to support a water solution that balances the protection of the water resource and housing development. 

Property Tax Legislation: The Governor’s Property Tax Task Force has introduced several property tax bills. HB231 seeks to pay for property tax relief for Montana residents by taxing out-of-state second homeowners and short-term rentals more. We feel that it overlooks the contributions that nonresident homeowners make to local economies. And we’re concerned that this treats resident Montanans who may own a cabin or inherited a family farmhouse differently for tax purposes. This bill passed the House with a 68-30 vote. It has been amended and tied to HB154. HB154, which aims to provide financial relief for homeowners whose property taxes exceed a certain portion of their income, also passed the House with a 59-39 vote.

Alongside HB231 and HB154, HB155 introduces a multi-tiered property tax system for residential properties, which passed the House with a 68-30 vote.

Residential Property rates:

First $50,000                                0 %

$50,001 to $500,000                    1%

$500,001 to $750,000                1.25%

$750,001 to $1 Million                 1.3%

$1,000,001 to $1.5 million           1.4%

$1,500,001 to $2 million              1.89%

Greater than $2 million                 2%

HB155 also provides property tax relief for commercial property. Commercial property would have two rates applied. With the amendment, the first $400,000 of commercial property value would have a rate of 1.4% applied. All value above $400,000 would be subject to the current rate of 1.89%. 

Other Tax Bills: MAR has also been following HB483, which would modify the school equalization mill levy system, and HB489, which could allow counties to implement a local sales tax to reduce property tax burdens. While HB483 has passed through the House Tax Committee, HB489 didn’t have to meet the 45-day transmittal deadline and is still awaiting a hearing.

Short-Term Rentals (STRs): In September of 2024 the Montana Supreme Court ruled that Short Term Rentals are commercial businesses. One of our focuses has been SB336, a bill that seeks to define Short-Term Rentals (STRs) as residential use. SB336 passed the Senate with a 36-14 vote and is now scheduled for a hearing in the House Local Government Committee. To address potential challenges, we are also working on a backup bill—a simpler bill defining STRs as residential. Additionally, SB336, another bill which revises the definition of a tourist home, has also passed the Senate and is headed to the House.

Development and Affordable Housing bills:

MAR has supported SB337 that would provide tax incentives for developers to complete new subdivisions as well as HB505 that would allow the Montana Infrastructure Revolving Loan Fund to be utilized to secure bonds and provide financing for infrastructure and other multifamily housing projects. Along with these bills MAR has supported many other bills aimed at reducing red tape of onerous zoning and building requirements.    

Landlord Tenant and Squatters:

MAR has sponsored HB444 to modernize the use of payment options between a landlord and tenant to include electronic fund transfers as well as strengthen the property owners’ rights to be able to quickly take back possession of their property if a squatting situation were to arise with SB101. Both HB444 and SB101 have passed their house of origin and will be heard in the opposite chamber in the coming weeks.

Looking Ahead: As the session progresses, water policy and responsible housing development continue to be our top priority. We continue to closely monitor these bills, advocating for policies that promote sustainable development while balancing the needs of homeowners, renters, local communities, and local resources. Our work is far from over, and we are committed to ensuring that the voices of REALTORS® and Montana property owners are heard throughout this legislative session.

Download our complete detailed list of Legislative Bills we have been tracking this session.