MT HB946

Increases lodging and rental car taxes by 1% each (from 4% to 5%) starting July 1, 2025, with the additional revenue dedicated to a new state property tax assistance account for principal residences

Provides a one-time $400 property tax credit for tax year 2025 (for 2024 taxes paid) to owners of principal residences who apply between July 15-August 15, 2025

Establishes permanent property tax assistance starting in tax year 2026, with credits distributed annually to certified principal residences funded by lodging/rental car tax revenue and calculated by dividing 50% of available funds by the number of eligible residences

Transfers up to $300 million from the debt and liability free account plus unspent property tax rebate funds from prior legislation to fund the new property tax assistance account

Requires homeowners to certify their principal residence with the Department of Revenue to receive ongoing assistance, with eligibility limited to owner-occupied homes where the owner lived at least 7 months of the year and valued at no more than 4.5 times the statewide median residential value