MT SB418

Local governments are prohibited from banning the use of residential dwellings for home-based businesses, and municipalities cannot require permits, licenses, or prior approval for "no-impact home-based businesses"

"No-impact home-based businesses" are defined as those where onsite employees and clients stay within occupancy limits, activities occur inside the dwelling or yard, activities are not visible from the street, and no substantial increase in traffic or on-street parking is generated

Municipalities may impose reasonable regulations on home-based businesses only for narrow purposes: public health and safety (fire codes, noise, traffic), ensuring compatibility with residential use, compliance with state/federal law, and prohibiting illegal activities like drug sales, liquor sales, sober living homes, or adult-oriented businesses

Home-based businesses are established as a permitted use under zoning regulations, though private deed restrictions, covenants, and HOA rules may still apply

Municipalities cannot require home-based business operators to rezone property for commercial use or install fire sprinklers in single-family homes or residences with two or fewer units