🎯 STRisker: Bulletin - Montana
Montana’s New Property Tax Law Raises Alarms
Montana’s Property Tax Overhaul: Relief or Risk?
Photo by southwestmt.com
Montana’s new property tax law is stirring confusion and concern among property owners, with real estate broker Bill Stene warning of unintended consequences that could reshape the housing market.
The law, passed to shift more of the tax burden onto second homes, vacation properties, and short-term rentals, offers rebates for primary residences and long-term rentals. Homeowners who registered last year automatically qualify if they live in their residence at least seven months in 2026. Long-term rentals—defined as properties rented for 28+ days for at least seven months—also qualify.
The rebate promises significant relief: primary residences will see an 18% tax reduction, while long-term rentals could see a 22% decrease.
Starting in 2026, properties will be classified into categories, with lower rates for homesteads and higher rates for non-owner-occupied properties.
But Stene warns the structure creates winners and losers. Properties shifting from rental to owner-occupied may face higher taxes, impacting their market value. “Some owners will find that their property is not saleable because their taxes are so much higher,” he said.
Stene is hosting a seminar on February 24 at the Billings Hotel and Convention Center to raise awareness. He urges all property owners to register by March 1 to avoid missing out on rebates.
While the law aims to provide relief for residents and discourage speculative ownership, its ripple effects could complicate property sales and affordability. For Montana homeowners, the challenge is navigating a system that may benefit some while penalizing others.
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