The Montana House approved on second reading a measure that would lower the state multipliers used to calculate property taxes for certain classes of property.

Representative Verne Byrne presented House Bill 528, which would reduce the multiplier for class 3 agricultural property from 2.16 to 1.7, adjust residential multipliers from 1.35 to 0.76, and change the commercial rate from 1.4 to 1.35 in the sections described in the bill. Byrne said the reductions would return multipliers closer to 2021 levels and estimated specific county-level savings: for example, a $100,000 home in Lincoln County would see a $93 reduction in taxes under the proposal.

The motion to recommend HB 528 do pass in the Committee of the Whole carried 90-9. Majority Leader Fitzpatrick later moved to re-refer HB 528 to the Appropriations Committee for fiscal review.

Sponsor testimony described the mechanics and sources of the multiplier calculations, and the sponsor said the adjustment would produce immediate tax relief for property owners, with calendar impacts on state funds in future fiscal years. The sponsor noted the bill relies on revenue shifts including university mills and other statutory levies.

Next steps: HB 528 goes to Appropriations for review of the fiscal note and funding adjustments required to make the multiplier changes operational. Specific appropriation mechanisms and timing will be considered in that committee; no appropriation was adopted on the House floor during this session’s recorded floor debate.

Why it matters: The proposed multiplier reductions affect property-tax obligations for agricultural, residential and commercial property across Montana and will be evaluated by Appropriations for their impact on state and local budgets.