MT HB489

Authorizes consolidated city-counties and counties to impose a local option sales tax of up to 4% for up to 10 years, subject to voter approval at a general election with at least 40% voter turnout

Revenue must be used for property tax relief: 90% distributed as credits to primary residences and long-term rentals, 9.75% shared with jurisdictions that don't levy the tax, and 0.25% for retailer administrative costs

Tax may apply to restaurant purchases, bars/taverns, non-SNAP-eligible food products, airport landings, and outfitting/guiding services, but cannot be levied on accommodations, rental vehicles, medicine, medical supplies, grooming products, cleaning supplies, paper products, or pet food

Long-term rental owners receiving property tax relief must pass 25-75% of the benefit to tenants, with the specific percentage determined by local government

Creates a state distribution account funded by the local option tax and lodging/rental car sales tax revenue, with the Department of Revenue retaining 5% for administration; effective date is July 1, 2026