Montana State Laws

✅ Law #1: Minimum Wage Increase — Montana (2025)

📝 What It Does

💰 Cost to Taxpayers / Employers

  • Minimal (state budget): mostly administrative costs to monitor / enforce.

  • Employers will see higher payroll costs for minimum wage workers.

👥 Who It Helps / Affects

  • Helps: Low wage workers in Montana — especially those paid near minimum.

  • Affects: Small businesses with many minimum wage workers; employers need to budget for wage increase.

⚙️ Who Sponsored / Initiated It

⚠️ Who Opposed / Concerns Raised

  • Some business groups may argue cost pressure / inflation ripple.

  • Employers with thin margins might struggle with wage increases.

✅ Pros & ❌ Cons

✅ Pros:

  • Helps workers keep up somewhat with cost of living.

  • Automatic CPI adjustments provide predictability.

❌ Cons:

  • Employer cost increases, which might lead to reduced hours or hiring in some small/marginal businesses.

  • If CPI spikes, employers may face sharp wage jumps year to year.

🗳️ The Ballot Beacon Takeaway

Montana’s new minimum wage is $10.55 as of Jan 1, 2025 — adjusted annually to match inflation, helping workers, but adding extra cost for employers.

✅ Law #2: Major Education & Housing Legislation — Montana 2025 Regular Session

  • Law / Bill: A set of signed bills from Montana’s 69th Legislature covering education funding, teacher pay, housing, etc. (Montana Public Radio)

  • Effective: Varied effective dates; many bills take effect mid-2025. (Montana Public Radio)

📝 What It Does

  • HB 15 — Boosts K-12 school funding by about $52 million (roughly a 3% increase) to help schools accommodate inflation. (Montana Public Radio)

  • HB 252 (“STARS Act”) — Provides incentives (state aid or funding) for schools that raise base teacher pay above approx. $41,000, particularly benefiting early-career & rural teachers. Also grants bonus funds if students earn college credits or career training. (Montana Public Radio)

  • HB 311 — Requires landlords with more than four properties to refund rental application fees to applicants who don’t get the apartment. (Montana Public Radio)

  • SB 172 — Revises resort tax eligibility and allows communities to use resort tax revenue for workforce housing projects. (Montana Public Radio)

💰 Cost to Taxpayers / State Budget

  • Increased state education spending (for funding & teacher pay incentives).

  • Some cost to local governments via workforce housing or refunding fees; possibly revenue changes.

  • Likely funded through state general fund budget allocations.

👥 Who It Helps / Affects

  • Helps: Teachers (especially in rural areas & early in career), students (by improving school resources), renters who apply to apartments (refund fee), communities needing more workforce housing.

  • Affects: Landlords with >4 units must comply with fee refund; schools that must meet pay thresholds; taxpayers funding increased education/housing costs.

⚙️ Who Sponsored / Initiated It

  • Montana’s 69th Legislature. HB 15, HB 252, HB 311, SB 172 were passed in the regular session. (Montana Public Radio)

⚠️ Who Opposed / Concerns Raised

  • Some may argue the 3% school funding bump isn’t enough given inflation; others may push back on the cost to taxpayers.

  • Landlords may oppose refunding fees as potential lost revenue or added admin cost.

  • Communities using resort tax funds for housing may face legal or budgeting obstacles.

✅ Pros & ❌ Cons

✅ Pros:

  • Supports education — helps maintain school resources and boosts teacher pay.

  • Helps renters and promotes fairness in housing application process.

  • Provides new tools for workforce housing, helping with housing affordability.

❌ Cons:

  • Costs increase for state and possibly property taxpayers.

  • Some bills’ effectiveness depends heavily on how well schools/communities execute.

  • Landlords may pass costs or adjust behavior / rental terms.

🗳️ The Ballot Beacon Takeaway

Montana’s 2025 session raised pay & funding for schools, refunded rental application fees for many renters, and allowed resort tax funds to help workforce housing — lots of relief & fairness, but with new budget and implementation burdens.

✅ Law #3: Senate Bill 74 — Marijuana Tax Changes & Related Revisions

📝 What It Does

  • Changes how Montana applies state-taxes on marijuana: tax on the retail price after discounts/promotions (so discount sales or promos count toward the taxed price) (Montana Department of Revenue)

  • Includes other revisions of marijuana taxation law in the broader act. (Montana Department of Revenue)

💰 Cost to Taxpayers / State Budget

  • Likely increases state tax revenue since discounts/promotions no longer reduce taxable base. (Montana Department of Revenue)

  • Some complexity for retailers in tracking discount/promotion amounts and reporting accordingly.

👥 Who It Helps / Affects

  • Helps: State budget / revenue projections; maybe local governments relying on state-shared revenue.

  • Affects: Marijuana dispensaries, retailers (they must adjust pricing/reporting). Consumers may face less incentive in discounting or potentially higher retail prices in some cases.

⚙️ Who Sponsored / Initiated It

⚠️ Who Opposed / Concerns Raised

  • Retailers likely concerned about administrative burden, loss of flexibility in promotions.

  • Some consumers may dislike fewer discounts or experience slight elevate in end-price.

✅ Pros & ❌ Cons

✅ Pros:

  • More stable and predictable tax revenue.

  • Closes loopholes where discounts reduce taxable income.

  • Simpler for state to forecast budget.

❌ Cons:

  • Businesses must track promotional discounts more strictly.

  • Consumers might see fewer or less steep deals.

  • Complexity of compliance/reporting rises.

🗳️ The Ballot Beacon Takeaway

SB 74 tightens how Montana taxes marijuana by making the full retail price (even promos/discounts) part of tax base starting October 1, 2025 — more revenue certainty, but more cost & complexity for sellers and possibly consumers.

✅ Law #4: SB 544 — Net Operating Loss Carryforward Transition Adjustment

  • Law / Bill: SB 544 — Transition Adjustment for Net Operating Loss Carryovers (Montana Department of Revenue)

  • Official Title: An act to allow a transition adjustment for differences between Montana’s net operating loss carryforward and the federal net operating loss carryforward for the 2024 tax year (Montana Department of Revenue)

  • Effective: Passed in 2025; applies to 2024 tax filings. Adjustments must be reported (or amended) by October 15, 2025. (Montana Department of Revenue)

📝 What It Does

  • If a taxpayer’s net operating loss (NOL) carryforward in Montana at end of 2023 is different from what the federal carryforward is, the law lets them make a transition adjustment in their 2024 tax return so they don’t lose out. (Montana Department of Revenue)

  • Ensures that the state law change (that tied Montana’s computation more to federal law) doesn’t unfairly penalize those with losses carried forward under old rules. (Montana Department of Revenue)

💰 Cost to Taxpayers / State Budget

  • State will lose some revenue (since some taxpayers will get bigger deductions / more favorable tax outcome) due to the adjustment. But likely modest amounts. (Montana Department of Revenue)

  • Some administrative / filing cost for taxpayers and the tax department (amended filings, etc.).

👥 Who It Helps / Affects

  • Helps: Taxpayers (especially those with business losses or investments) who otherwise would have been disadvantaged by stricter alignment with federal rules.

  • Affects: Individuals or entities using NOLs; tax professionals and state revenue department must process transitions.

⚙️ Who Sponsored / Initiated It

⚠️ Who Opposed / Concerns Raised

  • Some may say it’s a giveaway to richer taxpayers or businesses that had large losses.

  • Possible complexity in amendment filings; timing issues for those unaware of deadlines.

✅ Pros & ❌ Cons

✅ Pros:

  • Fairness: prevents being penalized for prior losses when tax filing changes.

  • Helps businesses or individuals with past losses to recover/offset taxable income.

❌ Cons:

  • State revenue takes a hit (though likely modest).

  • Requires tax filers to amend returns or do more paperwork.

  • Those who miss the adjustment deadline lose out.

🗳️ The Ballot Beacon Takeaway

SB 544 gives Montana taxpayers a breather by letting them adjust for net operating loss differences between state and federal rules on 2024 returns — fairer treatment, though with modest revenue trade-offs and filing work.

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