As reported by the Montana Free Press the office of Gov. Greg Gianforte said Friday, May 16, the Montana governor signed two bills implementing his signature property tax relief package. The passage of legislation is poised to reduce property taxes for many homeowners and long-term rentals. This is in part by passing hefty increases onto second homes and Airbnb-style short-term rentals. The legislation is projected to reduce homeowner property taxes 18% on average by 2026, while raising taxes on second homes and short-term rentals by 68%.
Once implemented, the second-home tax approach will divide residential properties into two tiers. Higher rates will be applied to second homes and short-term rental properties. This is in an effort to backfill residential cuts and minimize spillover onto business properties. In addition, the package also includes several rate tiers that lean the tax system harder on high-value homes in an effort to focus more relief on lower-value properties.
Homeowners and landlords who rent their properties will have to apply for a “homestead” exemption qualifying them for the lower rates starting in 2026. Homeowners who receive higher tax bills after failing to apply will be able to qualify via an appeals process.
Gianforte campaigned on the second-home tax concept during his re-election bid last year. He called the approach a “homestead” measure that would reduce taxes for housing used by permanent residents. They’ve argued that it’s fair to raise taxes on second homes. Those properties are generally owned by out-of-state residents who don’t necessarily pay for public services by filing Montana income taxes.
See full article: https://montanafreepress.org/2025/05/16/gianforte-signs-second-home-tax/
