A group of delegates to Montana’s 1972 constitutional convention and other activists are challenging a raft of fresh restrictions on the citizen initiative process recently enacted by the Legislature.
In a complaint filed May 26 in Lewis and Clark County District Court, the plaintiffs ask the court to strike down Senate Bill 93 and other statutes that add to the processes for citizens to propose new laws and constitutional amendments as ballot initiatives.
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The right of citizens to make policy through direct action, rather than through their elected representatives, is outlined in the Montana Constitution. Those citizen initiatives have long been subject to minimum signature requirements to reach the ballot, and the constitution states they can’t appropriate money.
SB 93 requires that those proposing a ballot initiative first pay a nonrefundable $3,700 filing fee, regardless of whether they get enough signatures to get on the ballot. It also forbids citizens from proposing a similar referendum more often than once every four years.
The legislation built on a 2021 law that also created several new steps in the citizen initiative process, and is also being challenged by the lawsuit. Those changes add to initiative petitions a statement from the Attorney General’s office on potential harm to business interests, a 50-word statement on the proposal’s estimated fiscal impact and a tally of an interim legislative committee’s vote on whether the initiative should end up on the ballot.
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“The Montana Constitution does not provide the AG, the Legislature, the (Secretary of State) or any entity of government with the power to interfere with the people’s power to write the initiative, including the language of the petition to place the initiative on the ballot,” the complaint states.
Constitutional convention delegates Mae Nan Ellington, Jerome Loendorf and Arlyne Reichert are among the plaintiffs in the case. It also includes several former Montana officeholders and activists with a history of working on ballot initiatives. They’re being represented by John Meyer with the Cottonwood Environmental Law Center.
It names as defendants Gov. Greg Gianforte, Attorney General Austin Knudsen and Secretary of State Christi Jacobsen, all of whom are Republicans. The plaintiffs allege that the new restrictions violate provisions in the state constitution that establish the extent of the Legislature’s power and lay out the processes for proposing initiatives, referendums and constitutional conventions.
SB 93 cleared the Legislature earlier this year with nearly all Republicans in support, and all but one Democratic lawmaker voting against it. It was signed into law by Gianforte earlier this month.
Democrats and other opponents of the bill argued it was being pushed by special interests who already control the legislative process and want to limit the citizen initiative process. The original bill emerged as a bipartisan effort crafted during the interim, but was overhauled by an amendment that had input from the Montana Chamber of Commerce and other groups, according to bill sponsor Sen. Mike Cuffe. Those changes included the $3,700 filing fee, expansions of the review process and restrictions on how often a similar measure can be proposed.
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Cuffe, a Republican from Eureka, had argued that the filing fee and restrictions were necessary to compensate the use of state resources and allow a more deliberative approach to the initiative process.
“That’s what we spend on average, on the low end of average, when a ballot initiative comes forward,” Cuffe said, referring to agency staff time. “And so many ballot initiatives, they’re not well-vetted like legislation on the floor is. They’re 20-second commercials.”
Business groups who supported the amended version of SB 93 argued that the citizen initiative process makes it too easy to target certain industries.
“Organizations like ours are oftentimes expected to cough up tens of thousands, if not hundreds of thousands, of dollars to buy TV commercials to settle public policy matters that really should be in front of this body,” Cary Hegreberg, president of the Montana Bankers’ Association, told a House committee in March. “… Ballot measures should be difficult to get on the ballot, because it’s too simple a way to make law.”
The plaintiffs also allege that the changes “add weeks of additional time” to the process of getting a petition onto the ballot, without changing the deadline for proponents to reach the signature threshold for initiative petitions. Along with the ability to accept or reject proposed language to put on the ballot, the laws give “exclusive control” of the initiative process to government agencies to run down the clock, it states.
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The complaint is currently before District Court Judge Kathy Seeley. Spokespeople for Knudsen and Jacobsen said Tuesday they hadn’t been served with the complaint. The governor’s office declined to comment.
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Winning Big Sky Bonus numbers from May 30 drawing
08-19-21-22, Bonus: 13
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Feeling lucky? Explore the latest lottery news & results
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Powerball: 8:59 p.m. MT on Monday, Wednesday, and Saturday.
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This results page was generated automatically using information from TinBu and a template written and reviewed by a Great Falls Tribune editor. You can send feedback using this form.
In an effort to lower property tax bills for homeowners and landlords who provide long-term rental housing, the state Legislature and Gov. Gianforte passed major tax relief legislation this year. As it’s implemented this year and next, the package will scale back taxes on most houses being used as primary residences while offsetting those cuts with higher taxes on most other residential properties starting in 2026.
As we cover the new tax policy, which the Montana Department of Revenue expects to boost second-home taxes by 68% on average, the MTFP newsroom is fielding many, many questions from readers. We’re compiling the most frequent ones — and the best answers we currently have — below.
We’ll update this story periodically as other questions roll into our inboxes and as officials release additional information on how the specifics of the new tax policy will work. As always, we’d love to hear comments and questions at news@montanafreepress.org.
Q: When will the second-home tax take effect?
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Interim rates will lower taxes for many residential properties on the tax bills sent by county treasurers this fall. However, the second-home tax won’t be implemented until 2026 tax bills, when it will raise taxes on most residential properties that don’t qualify for a “homestead” exemption.
Proponents had initially wanted to make the second-home tax effective this year, but added provisions for an interim year after negotiations on it dragged into the final days of the legislative session, missing the February deadline Gianforte had initially said would be necessary for the revenue department to implement the full policy this year.
Q: Who is eligible for the lower residential homestead rates?
A: Two types of residential property owners: Homeowners who live in their homes at least seven months a year and landlords who rent homes out on long-term leases for at least seven months a year. Long-term means leases that last at least a month, like the leases used for resident rental housing but unlike the terms for Airbnb-style short-term rentals.
Q: Will there be more property tax rebates?
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Yes. The Legislature also authorized a round of $400 rebates for homeowners, which will be available this year and apply against last year’s tax bill. Those follow the $675 rebates the Legislature authorized for homeowners in each of 2024 and 2023.
The new tax law requires the revenue department to mail a notice about the rebates to potentially eligible property owners by June 30. Eligible homeowners who meet the same seven-month occupancy standard that will be used for the eventual homestead exemption will be able to claim the rebate by applying between Aug. 15 and Oct. 1 this year.
Q: Do I need to apply to avoid paying the second-home tax?
Yes. When it takes full effect in 2026, the new law will assess higher taxes on any residential property that doesn’t qualify for the homestead exemption. Homeowners and landlords will need to apply to the revenue department for the exemption that will qualify them for lower rates.
Once homeowners are qualified for the homestead exemption, they will remain qualified until they sell the property, move elsewhere or apply for a homestead on a different residence. Landlords will need to periodically reapply to certify properties are still being used as long-term rentals.
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Additionally, homeowners who qualify for a property tax rebate this year will be automatically qualified for the homestead exemption going forward.
Q: How do I apply?
As of May 2025, the revenue department hasn’t yet published the necessary forms, but homeowners and landlords will be able to apply either by mail or online. The new law specifies that the application deadline for 2026 tax bills will be March 1, 2026.
The applications will ask property owners to formally declare that they’re using a property as either a principal residence or long-term rental. If the department discovers a taxpayer has fraudulently claimed the benefit, the law specifies that they will have to pay a penalty of three times the amount saved and be subject to potential criminal prosecution under a state law that can n result in a $500 fine and a jail term of up to six months.
Eligible homeowners and landlords who fail to apply for the homestead rates initially may be able to receive refunds if they appeal successfully after receiving higher tax bills.
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Q: I’ve heard there’s an exception for homes on agricultural land?
Yes. The tax package’s long-term rates place residential structures on agricultural land at their current levels regardless of whether they qualify as principal residences, an exemption intended to shield worker bunkhouses and other secondary residences in farm complexes from the second-home tax. That provision also means that second homes — including many high-value ones — located on qualified agricultural properties will be largely shielded from the second-home tax.
Separately from the second-home tax debate, revenue department officials and some lawmakers have expressed concern that it may be too easy to qualify undeserving properties for an agricultural status under current law, a process that currently requires reporting only $1,500 a year in agricultural income. A bill that would have tightened the qualification requirements for the agricultural designation, introduced separately from the property tax relief package, failed to pass the Legislature this year.
Q: What if I run anAirbnb out of part of my home? Will that keep me from qualifying for the homestead exemption?
You’ll probably be fine. The bill doesn’t explicitly address this situation, but the definition of “principal residence” included in the law focuses on whether a taxpayer owned and occupied a given residential property for at least seven months of the year. It also says you can’t claim more than one property as a principal residence, but doesn’t say anything about what you’re doing with a property other than living on it.
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Q: Will family cabins pay the second-home tax?
A: Unless they qualify for the homestead reduction, yes. The new law doesn’t distinguish between family cabins owned by Montana residents and luxury real estate owned by out-of-state residents.
Q: Why doesn’t the second-home tax apply only to out-of-state residents?
Because that would likely be struck down by the courts as unconstitutional discrimination. As legislative attorneys studying tax issues for lawmakers have noted in the past, the U.S. Constitution includes several provisions that have been interpreted as limiting how much power states have to discriminate against nonresidents, particularly with regards to freedom of movement and economic activity. For example, a 1975 ruling by the U.S. Supreme Court barred New Hampshire from imposing higher income taxes on nonresident commuters.
There is some legal nuance involved — the Supreme Court, for instance, ruled in 1978 that Montana could charge nonresidents higher hunting license fees because hunting is a recreational activity involving a state-owned resource. Even so, most legal analysts seem to think lawmakers are on much firmer ground by pegging their definitions to how much time a property owner spends living on or renting a given property, rather than their state of residence.
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Q: Will the tax relief force local government budget cuts?
No — at least in theory. The way the state’s property tax system works means that most local taxes “float” to collect a given budget amount. As such, tax bills will generally shift around so lower homeowner taxes are offset by higher taxes on other types of property, primarily businesses under the interim rates for this year, then a combination of businesses and second homes in future years.
The legislation also includes a provision intended to avoid short-term revenue reductions for taxes defined in terms of non-floating mills, a category that encompasses voter-authorized local taxes in some parts of the state.
The other wrinkle is that two of Montana’s municipalities, population-121,000 Billings and population-350 Sunburst, have provisions in their charters that could keep taxes from floating to accommodate the downward valuation shifts produced by the relief legislation. That’s caused particular angst in Billings, the state’s largest city, and spurred lawmakers to include a provision in the tax legislation that purportedly overrides those charters to keep revenues constant. It’s unclear, however, whether that override attempt would survive a court challenge, so the bill includes another provision specifying the state will backfill municipal revenues to 2025 levels if the override clause is struck down.
Q: Where can I read the full second-home tax legislation?
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This is actually quite tricky. The new tax policy was passed as two conjoined bills with some redundant language and convoluted coordinating clauses for reasons that have to do with arcane legislative politicking.
If that doesn’t scare you off, start with Senate Bill 542 (text here). However, disregard SB 542’s sections 4 and 14, which were adjusted by provisions in House Bill 231 (its sections 29 and 27, respectively). Note that other coordinating language in HB 231 (its section 31) nullifies most of HB 231’s other contents to avoid redundancy with SB 542.
Q: I tried reading the bills and … how exactly do they provide me with tax relief?
We feel your pain.
Here’s a short answer: Lawmakers are adjusting statewide property tax rates to dial back the tax values for homestead-eligible residential properties. Montana’s property tax math translates your taxable value to your share of the collective bills for schools, roads, law enforcement and other local government services. So scaling down tax values for primary residences while boosting them second homes will shift taxes away from homeowners without defunding services.
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The shift will also raise taxes for some business properties — particularly this year, as the interim rates reduce taxes for primary residence before the second-home tax revenue is available next year. The measure does include a provision intended to limit the impact on smaller business properties.
As for a longer answer? Stay tuned — we’re working on something.
Q: How much will my taxes change?
By the time the second-home tax is fully implemented in 2026, projections from the revenue department estimate the average owner-occupied home will see taxes decrease by 18% and the average long-term rental property will see a 22% decrease.
However, actual changes will vary place to place depending on factors including the composition of the local tax base and how specific counties, cities and school districts are managing their budgets. Bills for individual properties will also depend on shifts in the formal tax valuations due from the revenue department in the coming weeks.
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We wrote a separate story about the department’s projections, including visual breakdowns for different property types and county-by-county figures. It’s available here: How Montana’s new second-home tax could shift your property tax bill.
Have questions about the second-home tax and homestead? We’d love to hear from you — and plan to update this piece as new questions pop up and new information becomes available. Reach out at news@montanafreepress.org.
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Questions and answers about Montana’s new second-home tax
In an effort to lower property tax bills for homeowners and landlords who provide long-term rental housing, the state Legislature and Gov. Gianforte passed major tax relief legislation that will scale back taxes on most homes being used as primary residences while offsetting those cuts with higher taxes on most other residential properties starting in 2026. The MTFP newsroom is fielding many, many questions about new tax law from readers. Here are the most common ones — and the best answers we currently have.
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Plaintiffs from landmark Held case file constitutional climate case against Trump, federal agencies
The federal lawsuit Eva Lighthiser and her co-plaintiffs filed on May 29 challenges three executive orders that Trump issued during the first three months of his second term in the White House. The plaintiffs argue that the orders have suppressed climate science and slowed the transition to renewable energy sources in favor of fossil fuels, “thereby worsening the air pollution and climate conditions that immediately harm and endanger Plaintiffs’ lives and personal security.”
Twenty-two young Americans, 10 of whom prevailed in the Held v. Montana constitutional climate case, are suing the Trump administration over its climate and energy policies.
The plaintiffs argue in a federal lawsuit filed Thursday that by dismantling climate protections and working to “unleash” American energy, the executive branch is violating the separation of powers clause in the U.S. Constitution. The plaintiffs also argue that the president’s executive orders are threatening their rights to life and liberty.
The lead plaintiff in the litigation is Eva Lighthiser, a 19-year-old Livingston resident who also was a plaintiff in a constitutional lawsuit that challenged Montana’s permissive approach to approving fossil fuel projects. Lighthiser is joined by Rikki Held and eight other plaintiffs from the Montana litigation, as well as a handful of young Americans from Hawaii, Oregon, Florida and California.
During a seven-day bench trial in 2023, the Held lawsuit focused an international spotlight on Montana and its unique constitutional guarantee of a “clean and healthful environment,” which the district court — and later the Montana Supreme Court — interpreted to include a “stable climate system.”
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The federal lawsuit Lighthiser and her co-plaintiffs filed on May 29 challenges three executive orders that Trump issued during the first three months of his second term in the White House. The plaintiffs argue that the orders have suppressed climate science and slowed the transition to renewable energy sources in favor of fossil fuels, “thereby worsening the air pollution and climate conditions that immediately harm and endanger Plaintiffs’ lives and personal security.”
The plaintiffs are asking the court to invalidate the executive orders and direct Trump and the 11 federal agencies listed as defendants not to implement or enforce them.
“President Trump’s EOs falsely claim an energy emergency, while the true emergency is that fossil fuel pollution is destroying the foundation of Plaintiffs’ lives,” the 126-page filing reads.
In a press release about the lawsuit, Lighthiser described Trump’s fossil fuel directives as a “death sentence for my generation.”
“I’m not suing because I want to — I’m suing because I have to,” said Lighthiser, who plans to pursue environmental studies in college. “My health, my future, and my right to speak the truth are all on the line. [President Trump is] waging war on us with fossil fuels as his weapon, and we’re fighting back with the Constitution.”
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In an email to Montana Free Press on Thursday, White House spokesperson Taylor Rogers defended Trump’s energy agenda.
“The American people are more concerned with the future generations’ economic and national security, which is why they elected President Trump in a landslide victory to restore America’s energy dominance. Future generations should not have to foot the bill for the lefts’ radical climate agenda,” Rogers wrote.
In addition to enumerating the climate harms plaintiffs have reported, including wildfire-related and heat-induced visits to the emergency room, diminished career opportunities, property damage spurred by extreme weather events and a loss of cultural and recreational traditions, the complaint outlines tensions between Trump’s executive orders and the missions of congressionally authorized agencies such as the U.S. Environmental Protection Agency.
One of the executive orders named in the lawsuit directs federal agencies to identify and rescind actions that place an “undue burden” on the “identification, development or use of domestic energy resources — with particular attention to oil, natural gas, hydropower, biofuels, critical mineral and nuclear energy resources.” Another directs executive branch agencies to use emergency powers to facilitate energy companies’ access to federally-owned energy resources and the infrastructure required to transport and process them. The third focuses on the development and prioritization of coal-fired electricity.
In the Held v. Montana case, the Montana Supreme Court directed the state to develop a system for inventorying and disclosing greenhouse gas emissions associated with large projects seeking state-issued permits. This spring, the Montana Legislature adopted a framework that state agencies like the Montana Department of Environmental Quality can use to quantify greenhouse gas emissions.
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Many of the same attorneys who argued the Held v. Montana case are representing the plaintiffs in this litigation, including Roger Sullivan of Kalispell. Three of the plaintiffs’ attorneys in the case work for Our Children’s Trust, an Oregon-based nonprofit focused on climate litigation that spent the better part of a decade fighting the federal government in the Juliana v. United States lawsuit, a federal constitutional climate case that concluded earlier this year in the government’s favor.