2025 Legislative Session   

Montana Association of REALTORS® – 2025 Legislative Session Wrap-Up 

As the 69th Montana Legislative Session adjourned on April 29, we reflect on a session marked by both progress and ongoing challenges. MAR remained at the forefront of key debates affecting housing, property rights, and the real estate industry, actively advocating on behalf of our members and communities across the state. 

With your continued engagement and outreach, we helped shape outcomes on major issues—from water rights to zoning and permitting reform and housing investment—while staying vigilant on tax and regulatory policies that impact the business of real estate. 

Defending Water Rights and Property Interests 

SB 358 would have closed the aquifers for most exempt well use and all subdivisions in the Helena, Bitterroot, Gallatin and Missoula areas outside of city limits, forever. MAR members across Montana responded swiftly and decisively to multiple calls to action on critical water rights legislation. With your support, we successfully opposed several bills that would have threatened property rights, development potential, and long-term access to water resources. Your efforts in contacting legislators and attending committee meetings in person, as well as providing testimony played a vital role in protecting both our industry and Montana communities.  

Persistent Challenges: Property Tax Pressure 

Despite broad support for reform, property tax policy remains a serious concern. The passing of HB 231 and SB 542 will lower the property tax burden for primary resident property owners while raising property tax burdens for other Montanans and some Montana businesses. Because the taxable value of property is significantly reduced—due to lowering the residential property tax rate from 1.35% to 0.76% for much of its value and the commercial property tax rate from 1.89% to 1.50%—mill levies will increase to ensure that schools, cities, and counties can raise the same level of revenue they did in 2024. This will cause tax increases for all other classes of property. Some residential and commercial property will also see tax increases if they do not qualify for the reduced rates for owner-occupied and long-term rental residential property, or medium or large commercial properties whose tax rate decrease does not offset mill levy increases. The change in mill levies is dependent upon the mix of properties in a jurisdiction and how the new tax rates affect the total taxable value of a taxing entity. We join with our partners in the business and housing communities in calling for a more sustainable and equitable tax structure moving forward. 

Property Rights: Protection 

Squatting is a growing trend across the country and MAR worked with legislators to help pass SB 101 to address unlawful squatting and fraudulent property activity. The bill makes it a misdemeanor to occupy property without the owner’s consent and allows law enforcement to immediately remove squatters. It also targets fraudulent sales or leases of property without legal authority. The law also protects law enforcement from liability when acting in good faith during removals.  

Regulatory Reform: Increasing Housing Flexibility 

This session delivered several reforms to local zoning and building regulations aimed at boosting housing supply and cutting red tape: 

• SB 532 mandates that counties allow Accessory Dwelling Units (ADUs) by right and eliminates restrictive local ordinances on parking and design.
• HB 492 limits local governments’ ability to enforce excessive parking minimums, especially for smaller units and deed-restricted housing.
• SB 121 introduces updates to subdivision review authority and streamlines building code compliance.
• SB 213 allows for single-stairwell construction for certain mid-rise buildings. 
• SB 243 requires cities over 5,000 residents to permit duplexes in single-family zones and to allow multi-unit and mixed-use developments in commercial areas as well as limits parking and height restrictions in certain areas.  
• SB 175 allows for streamlined public hearing notice process when revising zoning.
• SB 174 provides that recreational vehicles and mobile homes are reviewed ats buildings for rent or lease. 
• HB 444 provides tenants and landlords modern options for handling security deposit transactions.

These reforms represent creative efforts toward smarter land use policies that allow our communities to meet growing demand with more flexibility. 

Housing Access: Affordability 

Housing affordability and supply remained central concerns during the session. While several priority bills—such as workforce housing tax credits and expanded grant programs—did not make it to the Governor’s desk, meaningful progress was achieved. 

HB 505 reauthorized the Governor’s HOMES Act as a revolving loan fund and allocated another $50 million. It expands project eligibility, including support for mobile home parks and multifamily ownership opportunities. 

HB 924, the Montana Growth and Opportunity Trust (GO Trust), represents a major long-term investment in housing. It establishes a revolving loan fund—the Housing Trust—with an initial $31.2 million investment and a sustainable revenue stream. As the Trust grows, it is projected to yield $12.5 million annually to support new affordable housing development statewide. 

Looking Ahead 

While we celebrate key wins, the 2025 session also underscored the need for continued advocacy. Many important housing solutions remain unfinished business, and the fight for fair tax policy, fair and equitable water management and balanced regulations continues. 

Thank you for being a vital part of our efforts this session. When MAR members speak up, policymakers listen—and it’s your voice that helps protect property rights and promote homeownership across our state. 

We look forward to continuing the fight for a thriving, accessible housing market in Montana. 

 

 

 

 

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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.