The Montana Senate Taxation Committee convened on March 21, 2025, to discuss significant changes to property tax reductions for low-income individuals and veterans. The proposed bill aims to adjust eligibility criteria for tax reductions, specifically lowering the income threshold from 100% to 60% for certain benefits.

Under the current system, individuals with a 100% reduction who fall within the lower income bracket receive a full tax reduction. The new legislation would allow those earning between 60% and 90% of the income threshold to qualify for a 50% reduction instead. The income thresholds themselves will remain unchanged, but the level of benefit will be adjusted based on the new criteria.

Additionally, the committee addressed the benefits available to surviving spouses of 100% disabled veterans or those who died due to service-related disabilities. These individuals can still qualify for benefits as long as they remain unmarried, although the income thresholds for eligibility will be lower.

The fiscal note presented during the meeting estimates that approximately 5,400 to 5,500 additional individuals in Montana would qualify for these benefits based on national statistics from the Veterans Administration.

While committee members expressed support for the bill, concerns were raised about the broader implications for all property taxpayers, including homeowners and veterans. The discussions highlighted the need for a balanced approach to ensure that all segments of the community receive adequate support.

As the committee moves forward, the proposed changes could significantly impact property tax relief for low-income residents and veterans in Montana, reflecting ongoing efforts to address financial challenges faced by these groups.