Montana lawmakers introduce HB 831 to enhance property tax relief for seniors and renters

A significant proposal aimed at providing property tax relief to Montana's elderly homeowners and renters took center stage during the House Taxation meeting on March 21, 2025. House Bill 831, introduced as a targeted and balanced approach, seeks to revitalize the state's long-standing elderly homeowner and renter tax credit program, which has not kept pace with inflation and demographic changes.

The bill proposes to increase the total credit amount from $11.50 to $1,400, a conservative adjustment considering the credit was $1,000 in 1995. This increase aims to better reflect the economic realities faced by seniors on fixed incomes. Additionally, the income exclusion threshold would rise from $12,600 to $14,100, allowing more individuals to qualify for assistance.

One of the standout features of HB 831 is its inclusion of renters, offering tax relief based on a portion of their rent attributed to property taxes. This is a significant shift, as it acknowledges the financial burdens faced by renters in the current housing market.

The bill also proposes to adjust the credit phase-out steps, making them more gradual and less abrupt, which could help more seniors retain their benefits as their incomes increase. The Department of Revenue estimates that the program could absorb an additional 3,300 beneficiaries without requiring new staff, bringing the total closer to historical levels.

With property taxes being a contentious issue in Montana, supporters argue that HB 831 represents a smart and effective policy solution that addresses the needs of vulnerable populations without straining state resources. Advocates are urging swift passage of the bill to deliver much-needed relief to constituents who are struggling with rising property taxes.