Montana's Senate Bill 336, introduced on March 1, 2025, aims to clarify and regulate the use of short-term rentals across the state, a topic that has sparked significant debate among residents and local governments. The bill seeks to establish that short-term rentals are a residential use of property, thereby limiting the ability of municipalities to impose blanket restrictions on them.

One of the key provisions of SB 336 is that short-term rentals can only be restricted in areas where residential use is not permitted. This means that if a municipality allows residential properties, short-term rentals must also be allowed, unless there is a complete prohibition across the entire municipality. The bill also stipulates that properties used for short-term rentals must be the primary residence of the owner, who must demonstrate occupancy for at least 183 days a year.

The legislation addresses ongoing tensions between property owners who wish to capitalize on short-term rental opportunities and local governments concerned about the impact on housing availability and neighborhood dynamics. Proponents argue that the bill supports property rights and encourages tourism, while opponents fear it could exacerbate housing shortages and disrupt community cohesion.

Notably, the bill includes a provision that any existing short-term rental that complies with state licensing and tax requirements will be considered a legal nonconforming use if local regulations change to restrict such rentals. This aspect aims to protect current operators from sudden regulatory changes that could jeopardize their businesses.

The implications of SB 336 are significant, as it could reshape the landscape of short-term rentals in Montana. Experts suggest that while the bill may boost local economies by promoting tourism, it could also lead to increased competition for long-term housing, potentially driving up rental prices in popular areas.

As the bill moves through the legislative process, it is expected to face further scrutiny and debate, particularly from local governments and community organizations concerned about its long-term effects on housing and neighborhood stability. The outcome of this legislation could set a precedent for how short-term rentals are managed in Montana, impacting both property owners and residents alike.