HELENA — The House Taxation Committee on Tuesday voted 21-0 to pass House Bill 831, a measure that raises the elderly homeowner and renter income tax credit, increases the income exclusion used to determine eligibility and adds an inflation adjustment to keep the credit from eroding over time.

Representative George Nicholas Acacos, sponsor of HB 831, told the committee the bill updates the long-running credit for Montana taxpayers age 62 and older and extends a form of property tax relief to renters by recognizing a 15% factor of gross rent as attributable to property tax. “This is a targeted and balanced approach,” Acacos said, asking for a due pass.

The bill increases the credit amount to $1,400, raises the program’s adjusted gross income exclusion from $12,600 to $14,100, and smooths the phase-out steps so benefits taper more gradually. Department of Revenue staff told the committee the changes would add about 3,300 Montanans to the program and that the department expects to absorb the additional claimants without adding staff.

Rose Bender of the Montana Budget and Policy Center testified in support, saying HB 831 helps address the regressive effect of property taxes on lower- and moderate-income homeowners and renters. “Tax credits like this are the most effective tool available to promote property tax affordability for those eligible,” Bender said.

Tim Summers, AARP Montana state director, also testified for the bill, emphasizing that property tax can be especially burdensome for older Montanans who are “house rich and cash poor” and that the credit should be updated periodically to reflect inflation and market changes.

Department of Revenue staffers Dylan Cole and Shaylyn Daigle answered questions about implementation. Daigle explained that the department’s unit oversees the credit, applies the exclusion and other calculations (including the 15% rent factor), and issues the credit as refundable for many filers. Daigle also described the department’s online transaction portal, which now guides filers through a simplified claim process and allows applicants to upload supporting documents such as property tax bills or rent receipts.

Committee members asked for clarification about the inflation indexing and the adjusted gross income (AGI) exclusion. Acacos said the bill adds an inflation factor to both the credit amount and the income exclusion to reduce the need for frequent statutory changes.

In his closing, Acacos said HB 831 is one component of a broader package of property tax relief measures and urged the committee to pass the bill given projections of further property-value increases.

Votes at executive action showed a unanimous 21-0 committee approval. The committee record lists multiple proxy votes; the motion was approved without recorded opposition.

HB 831 will move forward to the next steps in the legislative process with a committee recommendation to pass.