Right Back Act to provide property tax relief clears Appropriations

Bill receives near unanimous support from House financial committee on March 31

HELENA, Mont. — March 31, 2025 — HB 483, the Right Back Act sponsored by Representative Courtenay Sprunger, cleared a large hurdle today, passing out of House Appropriations Committee on a near unanimous vote. The bill delivers immediate, substantial and sustained property tax relief while protecting the 95 school equalization mills that fund Montana schools fairly across counties.

The property tax relief included in HB 483 returns surplus revenue from the 95 mills “right back” to Montana taxpayers starting immediately in the Fall of 2025. By reducing the big ticket line items on every Montana property tax payer’s county tax bill, like school transportation and teacher retirement, HB 483 directly reduces property taxes while preserving essential school funding.

“The Right Back Act is a win-win for all Montanans.It gives property owners immediate and sustained tax relief, starting this fall, while protecting Montana students,” said Rep. Sprunger. “Surplus property tax dollars belong in the hands Montana homeowners, and HB 483 will send it right back to the people.”

How the Right Back Act works:

• Direct Property Tax Relief: Excess revenue from the 95 school equalization mills will lower local school district and county levies, resulting in immediate and transparent tax relief.

• Stable School Funding: The bill locks in the 95 mills as a primary, stable funding source for schools, preventing disparities in educational opportunities regardless of district wealth.

• Timely response: Revenue growth exceeding 5% above the state commitment to school funding collected from the 95 mills will be returned to taxpayers through a buy down of permissive mills on their county tax bill, balancing Montana’s constitutional obligations for equitable education funding with fair taxation.

• Modernized Transportation Support: For the first time in 20 years, state reimbursement rates for school transportation will increase, offering $18 million in immediate relief and reducing pressure on local budgets by 2026.

• GTB Lag Safeguards: Built-in safeguards will prevent tax spikes between reappraisal cycles—commonly known as GTB (Guaranteed Tax Base) lag—ensuring predictable tax rates for Montanans.

HB 483 passed out of the House Appropriations Committee on a 23-1 vote. It now awaits a full hearing on the House floor.