MONTANA STATE LAWS
LAW CONFIRMATION
Law or Bill: House Bill 337
Official Title: An Act Generally Revising Individual Income Tax Provisions
Effective Date: January 1, 2026 (Tax Year 2026)
Primary Source: Montana Department of Revenue — HB 337 explanation (revenue.mt.gov)
LAW SUMMARY
What it does: Revises Montana’s individual income tax structure beginning in Tax Year 2026, including adjustments to tax brackets and related provisions.
Cost to taxpayers or employers: Changes how individual income is taxed. Exact fiscal impact depends on income level. Official state summaries do not list a single statewide cost figure.
Who it affects: Individual income taxpayers in Montana.
Who sponsored or initiated it: Montana Legislature; signed by the Governor.
Who opposed it or concerns raised: Debate centered on long-term state revenue impact and distribution of tax benefits.
✅ PROS
• Updates state income tax structure
• May reduce tax burden for some filers
• Applies statewide
❌ CONS
• Potential reduction in state revenue
• Benefits vary by income level
• Requires taxpayer adjustment to new structure
THE BALLOT BEACON TAKEAWAY:
Montana revises its individual income tax system starting in Tax Year 2026. Taxpayers will file under the updated structure.
LAW CONFIRMATION
Law or Bill: House Bill 636
Official Title: An Act Generally Revising Laws Related to Marijuana
Effective Date: July 1, 2026
Primary Source: Montana Department of Revenue — 2025 Cannabis Legislative Updates (revenue.mt.gov)
LAW SUMMARY
What it does: Places limits on THC content in marijuana edibles and revises related cannabis regulations.
Cost to taxpayers or employers: Compliance costs for licensed cannabis businesses. No specific statewide cost figure is listed in official records.
Who it affects: Licensed cannabis producers, processors, and retailers in Montana.
Who sponsored or initiated it: Montana Legislature; signed by the Governor.
Who opposed it or concerns raised: Industry stakeholders raised concerns about product reformulation and compliance costs.
✅ PROS
• Sets standardized THC limits
• Enhances regulatory clarity
• Applies statewide
❌ CONS
• Reformulation costs for businesses
• Possible product availability changes
• Administrative enforcement required
THE BALLOT BEACON TAKEAWAY:
Montana sets new THC limits for marijuana edibles starting July 1, 2026. Cannabis businesses must comply with updated standards.
LAW CONFIRMATION
Law or Bill: House Bill 792
Official Title: An Act Generally Revising Marijuana Labeling and Education Requirements
Effective Date: July 1, 2026
Primary Source: Montana Department of Revenue — 2025 Cannabis Legislative Updates (revenue.mt.gov)
LAW SUMMARY
What it does: Updates marijuana packaging, labeling, and consumer education requirements for licensed cannabis products.
Cost to taxpayers or employers: Compliance and packaging update costs for cannabis businesses. Exact amounts are NOT SPECIFIED IN PUBLIC RECORDS.
Who it affects: Licensed marijuana businesses and consumers in Montana.
Who sponsored or initiated it: Montana Legislature; signed by the Governor.
Who opposed it or concerns raised: Some industry representatives raised concerns about implementation costs.
✅ PROS
• Improves consumer information
• Standardizes labeling requirements
• Applies statewide
❌ CONS
• Increased packaging compliance costs
• Operational adjustments required
• Enforcement oversight needed
THE BALLOT BEACON TAKEAWAY:
Montana updates marijuana labeling and consumer education rules in 2026. Cannabis businesses must follow new packaging standards starting July 1.
LAW #1: MINIMUM WAGE INCREASE — MONTANA (2025)
Law / Bill: Wage & Hour Payment Act / Montana minimum wage laws
Effective: January 1, 2025 (Employment Standards Division)
Primary Sources: Montana Department of Labor & Industry; wage & hour FAQs (Employment Standards Division)
What It Does: Raises Montana’s state minimum wage from $10.30/hr to $10.55/hr starting Jan 1, 2025. (Employment Standards Division) Requires that the wage be adjusted yearly (no later than September 30) based on the Consumer Price Index (CPI) — if CPI has increased. (Employment Standards Division)
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: Part of existing wage & hour statutes; annual adjustment mechanism built in state law. (Employment Standards Division)
Who Opposed / Concerns Raised: Some business groups may argue cost pressure / inflation ripple. Employers with thin margins might struggle with wage increases.
✅ 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
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
Law / Bill: SB 74 — Generally Revise Marijuana Tax Laws (Montana Department of Revenue)
Official Title: An Act to generally revise tax laws related to marijuana (including how sales discounts/promotions get taxed) (Montana Department of Revenue)
Effective: Passed & signed May 8, 2025. Some parts effective immediately, major tax changes take effect October 1, 2025. (Montana Department of Revenue)
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: Montana Legislature; passed & signed into law in 2025; sponsor details in bill text. (Montana Department of Revenue)
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
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: Montana Legislature, part of broader revenue/tax law adjustments. (Montana Department of Revenue)
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
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.