MT SB542

Provides a $400 property tax rebate (or total taxes paid, whichever is less) for tax year 2024 to homeowners who owned and occupied their principal residence for at least 7 months, with claims due by October 1, 2025

Reduces Class Three agricultural property tax rate from 2.16% to 2.05% of productive capacity value

Creates a "homestead reduced tax rate" for owner-occupied principal residences and a "rental property reduced tax rate" for long-term rentals (28+ day leases), with graduated rates based on median residential value ranging from 0.76% to 1.9%

Establishes graduated commercial property tax rates: 1.4% for the first $400,000 of market value and 1.89% for value exceeding $400,000, with lower rates (1.5% and 1.9%) for properties based on median commercial value thresholds beginning in 2026

Supersedes local government charter mill levy limits to maintain revenue neutrality while implementing rate reductions, and provides state reimbursement to affected taxing entities for up to 4 years