Montana did something last year that most states only talk about. The legislature actually passed property tax reform. Two bills. Signed by the governor. Real changes to real tax bills.
And it still was not enough.
Now there are three separate ballot initiatives trying to cap property taxes even further... and the people behind them cannot stand each other.
What Already Happened
In May 2025, Governor Greg Gianforte signed House Bill 231 and Senate Bill 542 into law. Together, they did three things:
- ›Created a lower "homestead rate" for primary residences and long-term rentals
- ›Delivered a $90 million property tax rebate to homeowners
- ›Raised taxes on vacation homes, second homes, and short-term rentals by an estimated 68%
The governor said 80% of residential property owners would see a tax cut averaging $500. Another 10% would see no increase. That left the other 10%... the vacation home and short-term rental crowd... picking up the tab.
To get the lower rate, you had to apply at homestead.mt.gov by March 20, 2026. That deadline has passed. If you missed it, the portal reopens May 4 for the 2027 tax year.
The Lawsuit Nobody Expected
Here is where it gets interesting.
Three Republican state senators... including Taxation Committee Chair Greg Hertz and Majority Leader Tom McGillvray... sued the state over the very law their own party passed. Their argument: Senate Bill 542 changed too many sections of law at once, violating the state constitution.
The sponsor of SB 542? Senator Wylie Galt. A Republican. Being sued by Republicans. Over a Republican governor's signature legislation.
If the lawsuit succeeds, Montana's property tax law could reset to 2024 terms. Every cut, every rebate, every rate change... gone. Governor Gianforte has petitioned to block the suit.
So while three ballot initiatives compete to cap property taxes further, there is a live legal challenge that could undo the relief that already exists. Nobody's talking about that part on the campaign trail.
Three Initiatives, Three Philosophies
All three want to cap property tax growth. That is where the agreement ends.
Galt's Initiative: The 2% Government Cap
Senator Galt... the same guy who sponsored SB 542... rolled out a new constitutional initiative in March 2026 that would cap property tax increases by local governments at 2% per year. The cap applies across the board: residential, commercial, agricultural, industrial, timber... everything.
But it comes with exceptions. School district mills and levies are exempt. Voter-approved tax increases are exempt. New construction and property improvements are exempt.
Galt's pitch: "I'm proud of the reforms we made with Gov. Gianforte in 2025 to permanently cut property taxes for 80% of Montana homeowners, but we must do more."
To make the November 2026 ballot, the initiative needs to clear the legislative services division and Attorney General Austin Knudsen, then collect more than 60,000 qualified signatures by June 19.
Monforton's CI-129: The Primary Residence Cap
Former Republican legislator Matt Monforton already has two initiatives approved for signature gathering. Constitutional Initiative 129 would cap annual increases in primary residence valuations at 2%... unless the home is renovated or sold.
This is a different approach. Galt caps what governments can collect. Monforton caps what your home can be assessed at. One limits the tax bill. The other limits the number your tax bill is calculated from.
Monforton's CI-130: The Everything Cap
CI-130 goes further. It applies the same 2% valuation cap to all real property... not just primary residences. Commercial, agricultural, everything.
Monforton is not impressed with Galt's version. He called it "exactly what you would expect from the tax-and-spend Republicans in charge of our state." His main objection: Galt's initiative exempts school districts and allows simple-majority voter overrides.
"Those are the two biggest drivers of property taxes," Monforton said.
Oh... and Monforton is also the attorney representing the senators suing the state over Galt's 2025 bill. These people are all on the same team, theoretically.
What This Means for Montana Homeowners
Here is where you actually are right now:
- ›If you applied for the homestead rate by March 20: You should see a lower property tax bill in November 2026. The average cut is projected at 18%.
- ›If you own a vacation home or short-term rental: Your taxes are going up by roughly 68% from 2024 to 2026. That is not a typo.
- ›If the lawsuit succeeds: Everything resets. The cuts go away. The increases go away. You are back to 2024 rates and nobody is happy.
- ›In November 2026: You may get to vote on one or more ballot measures to cap property tax growth permanently. Which ones make the ballot depends on signature gathering over the next few months.
To check your county's property tax due dates, find your county here.
The Bottom Line
Montana's property tax story is a mess of good intentions eating each other alive. The legislature passed real reform. The governor signed it. Homeowners got a cut. And now members of the same party that passed it are suing to undo it while simultaneously running three competing ballot initiatives to go further.
County property taxes in Montana grew an average of 6.19% per year between 2001 and 2022. The 2025 reforms were supposed to fix that. The ballot initiatives say they did not go far enough. The lawsuit says they went too far... or at least went about it wrong.
Meanwhile, you are a homeowner in Montana trying to figure out what your tax bill is going to look like next year. Good luck. Even the Republicans cannot agree on the answer.
Montana property taxes are due in two installments... November 30 and May 31. Set up a free reminder so you don't miss yours.