2025 Property Tax Changes Shift Burden Toward Businesses in Helena

Leaders from the business community, utility sector and taxpayer advocacy groups gathered at the Montana Chamber of Commerce’s Business Days at the Capitol in Helena on Jan. 6 to assess how the property tax changes enacted in 2025 are playing out. Panelists said House Bill 231 and Senate Bill 542 restructured homestead exemptions and assessment rates in ways that reduce tax burdens for many primary residences but raise effective rates for certain non‑homestead properties, particularly larger commercial and industrial parcels.

Todd O’Hair, CEO of the Montana Chamber of Commerce, framed the concern in stark terms: "There’s a picture to be painted here and it’s, this is not the most attractive place as far as property taxes are concerned." Panelists including Paul Hopfauf of MDU Resources and Bob Story of the Montana Taxpayers Association argued that the net effect is a redistribution of tax incidence that could increase business operating costs across the state and in Lewis and Clark County.

Property taxes are a primary revenue source for local governments and schools, and changes to exemptions and assessment methods alter who pays and how much. While many homeowners in Helena and surrounding communities may see relief from lowered homestead rates, business owners could face higher bills on office, retail and industrial properties. Utilities and other capital‑intensive firms warned that higher property bills will be factored into their cost structures, potentially passed through to customers or reflected in slower capital expansion.

The panel also examined broader fiscal options, including the politically contentious idea of a statewide sales tax to diversify revenue and reduce reliance on property levies. Advocates say a sales tax could broaden the tax base and stabilize revenue, while opponents point to political resistance and potential regressivity for lower‑income households. Panelists noted the idea would face steep political hurdles despite its theoretical appeal as a tool to relieve concentrated property tax burdens.

For local business owners and municipal leaders in Lewis and Clark County, the immediate takeaway is the need to rework budgets and investment plans to account for higher property tax exposure on non‑homestead assets. The discussion underscored how statewide tax policy changes filter down to community competitiveness, utility rates and the economic calculus that firms use when weighing expansion or relocation decisions in Helena and across Montana.