The Montana Legislature convened on February 14, 2025, to introduce House Bill 507, a significant legislative proposal aimed at amending the state constitution to implement a 4% sales and use tax. The primary objective of this bill is to generate revenue that would be allocated to reduce property taxes funding K-12 education in Montana.

House Bill 507, sponsored by a bipartisan group of legislators, seeks to amend Article VIII, Section 16 of the Montana Constitution. The proposed amendment stipulates that the net revenue from the newly established sales tax would be dedicated to alleviating the financial burden of property taxes on residents, specifically targeting funding for K-12 education. The bill also includes a provision that any deviation from this allocation would require a supermajority vote of three-fourths in both legislative chambers.

A notable aspect of the bill is its requirement for a two-thirds affirmative roll call vote from all members of the legislature for passage, as mandated by Article XIV, Section 8 of the Montana Constitution. If approved, the measure would be presented to voters during the general election in November 2026, with an effective date set for July 1, 2027.

The introduction of House Bill 507 has sparked discussions among lawmakers and constituents alike. Proponents argue that the sales tax could provide a more stable funding source for education while easing the reliance on property taxes, which have been a point of contention for many homeowners. However, opponents express concerns about the potential economic impact of introducing a new tax, particularly in a state where property taxes are already a significant financial burden.

As the legislative session progresses, the implications of House Bill 507 could be far-reaching, potentially reshaping the funding landscape for education in Montana. Stakeholders are closely monitoring the bill's trajectory, as its passage could signal a shift in how educational funding is approached in the state, balancing the need for adequate resources with the economic realities faced by residents. The outcome of the upcoming legislative discussions and the subsequent voter decision in 2026 will be pivotal in determining the future of education funding in Montana.