Government Affairs had a busy 2023. Local governments across Southwest Montana dealt with new and ongoing issues, some of which were more consequential for the real estate industry than others. The Government Affairs Committee watched these issues closely, acting swiftly when necessary.

• Short Term Rentals (STRs)
  • The City of Bozeman, in November, passed a new ordinance restricting Bozeman addresses from being used as rentals under 28-days. Specifically, the city banned all Type III rentals, which encompasses all owned, but unoccupied dwellings. However, thanks to an effective Call to Action, all existing, compliant Type III rentals, prior to December 14^th were grandfathered into the ordinance with no sunset established. The Bozeman City Commission will look at the efficacy of this ordinance in October 2024.
• State Tax Policy
  • Property taxes across Montana increased this year by 21% on average – with rates increasing from 11% to 35%. One reason for the tax hikes is that MT court ruled that 95 mills must be enforced.
• Montana Senate Bill 382: Montana Land Use Planning Act
  • In brief, the Land Use Planning Act requires that all municipalities update their zoning regulations. The Montana Land Use Planning Act attempts to reorganize outdated zoning regulations that restrict land use and planning statutes. In other words, municipalities are rewriting their zoning codes and growth policies. The most likely outcome of this bill is more housing units being built – through infill, density, and height changes.
  • This bill is, mainly, the product of the Governor’s Housing Task Force. The act sets out to promote more predictable land use and planning processes.
• House Bill 819: Community Reinvestment Act
  • This State Congressional bill was signed into law in June of 2023. With a roughly $225 million budget, the purpose of the act is to fund affordable workforce housing infrastructure across the state through a variety of methods – which are grants, revolving loan funds, trusts, investments, and incentives. Progress on this act will be seen over the next year and a half.
• Parking
  • A parking ordinance was set to go into effect this year, but thanks to the efforts of the Government Affairs Committee, this real estate unfriendly proposal was shot down.
  • 2024 is showing signs that another parking plan is in the works. The GAC will monitor this closely and act if the proposal is similar to what was proposed in 2023.

Stay tuned to all GAR’s communication methods for updates as they come – Facebook, LinkedIn, email, and more.