Zoning, taxes and the fight for Montana’s future

In the last census, Kalispell was named the fastest growing micro-metropolitan area in the country. And with that growth comes a real challenge: How do we make room for more families, more workers  and more opportunity without losing the very character that makes our communities feel like home?  

This session, the Legislature is working through that question — trying to strike a balance between making housing more accessible and protecting the values that make Montana the Last Best Place. From zoning reform to infrastructure upgrades and property tax relief, here’s a look at some of the major proposals shaping the conversation this week.  

Senate Bill 266, sponsored by Sen. Jeremy Trebas would allow triplexes and four plexes in areas zoned for single-family homes in cities over 5,000 residents. It bars stricter rules on these units than those applied to single-family or duplex homes but allows limits where infrastructure can’t support added density. In Kalispell, opponents worry SB 266 threatens neighborhood character, reduces local input and strain infrastructure; others welcome more options for seniors, families and workers seeking housing in walkable neighborhoods. 

Senate Bill 243, carried by Sen. Ellie Boldman, would prevent cities from limiting building height below six stories in certain zones and require one off-street, ADA-accessible parking space per unit. Supporters say it removes costly barriers to housing development. Opponents worry it could allow tall buildings near quiet neighborhoods and prefer local control over zoning. In Kalispell, many provisions already align with existing downtown guidelines. A proposed amendment creating “transition zones” between taller buildings and single-family homes may offer a compromise between statewide housing goals and neighborhood character. 

As Montana grows, we need tools to manage housing demand through local control, which is why I introduced House Bill 534, which passed Senate Local Government this week. House Bill 534 provides an optional tool for county water/sewer districts — at their discretion — to sell advance system capacity to approved projects. This creates a self-funded path for necessary expansion without passing costs onto existing ratepayers. While entirely voluntary, this approach gives districts the flexibility to support housing where appropriate, reduce reliance on septic systems, and better protect long-term water quality — especially in areas experiencing growth. 

Property tax reform: Relief now and planning ahead

Property taxes share the stage as a top concern in the housing discussion. In addition to HB 321 Homestead Act (Jones) and HB 483 The Right Back Act (Sprunger) which cleared House Appropriations on a near unanimous vote this week, the following are two key initiatives to watch. 

HB 528 from Rep. Ed Byrne, sailed through second reading on the House floor and will now face House Appropriations. The bill proposes rolling property tax rates back to 2021 levels and extend relief to agricultural land. Supporters say it offers immediate relief to most property owners — helping fix a problem that began when rate adjustments were skipped in past sessions. Opponents are concerned about the trade-off: a significant drop in state revenue — estimated at approximately $200 million annually — that could impact public services such as wildfire mitigation, infrastructure maintenance and schools. 

Senate Bill 117, sponsored by Sen. Daniel Zolnikov, takes a long-term view. It would allow local governments to set up a “Large Taxpayer Reserve Account,” saving 10% of newly taxable revenue each year. That reserve can be used to stabilize budgets if a major taxpayer — like a mine or manufacturing facility — shuts down or sees a large drop in value. To put it simply: If a small town relies on one large employer to fund services like police, roads and fire protection, and that employer closes, everyone else could face a steep tax increase just to keep things running. Senate Bill 117 helps communities plan ahead so that doesn’t happen. 

Together, these bills aim to make Montana’s property tax system more predictable, stable and fair.  

Montana’s housing and tax challenges didn’t appear overnight, and won’t be solved overnight. But this session, we’re seeing thoughtful, bipartisan efforts to find balance: To support responsible growth, improve infrastructure and protect the Montana way of life. 

As a fifth-generation resident of the Flathead, I am working to strike a hard balance — creating housing so your children and grandchildren can build a life here while ensuring the place so many of us have loved and lived for years is still recognizable a decade from now. 

 Rep. Courtenay Sprunger, R-Kalispell.