2025 Legislative Session Recap

As the 2025 legislative session has now adjourned, we want to take a moment to thank you for everything you did to help protect Montana’s tourism economy. This session brought significant challenges, from aggressive attempts to raid the lodging facility use tax to a renewed push to deregulate short-term rentals. But thanks to a strong coalition, coordinated strategy, boots on the ground lobbying, and the outstanding engagement of our members, we successfully defended the bed tax and held the line on STRs.

Your testimony, outreach, and behind-the-scenes support made a real difference. In the face of well-organized opposition and sustained pressure at the Capitol, we defeated every proposal that threatened our industry. These weren’t just policy wins. They were a testament to the strength and credibility of Montana’s tourism and hospitality sector when we speak with one voice.

One key win we’re especially proud of is the passage of SB 409, a cleanup bill to last session’s major tourism funding legislation. SB 409 was signed into law by the Governor, and we will be in close communication with the Department of Commerce on implementation. We’ll keep members informed as changes take effect and ensure that our industry always has a seat at the table.

But as we’ve said throughout the session, the threats aren’t going away. We fully expect efforts to rework or reallocate the bed tax to return next session, and our opposition is already regrouping. That’s why our work is far from over.

In the months ahead, we’ll be focused on building relationships with legislators and local leaders, following up with key decision-makers, and preparing for renewed challenges. Throughout the interim, we’ll be on the road to highlight the economic and community benefits of the lodging facility use tax and the value our members bring to every corner of the state.

This is where we would like your help. If you have events coming up, local projects that showcase the power of tourism investment, or relationships we should help strengthen, let us know. The more we can demonstrate our statewide impact, the stronger our foundation will be heading into the next session.

Thank you again for showing up this session. Your partnership and advocacy continue to be the cornerstone of our success, and we’re counting on your engagement in the interim to protect the funding and tools that keep Montana’s tourism economy strong.

Motnana's New Brand



On May 16, Gov. Greg Gianforte joined the Montana Department of Commerce at the World Famous Miles City Bucking Horse Sale to unveil Montana’s new brand.

The new brand is inspired by and created to represent Montanans by promoting the entire state, attracting and dispersing travel, celebrating and marketing Montana’s businesses, welcoming new businesses, uplifting rural communities and their stories, and celebrating Montana’s heritage and character.

“For the first time in 16 years we’re reintroducing Montana to the world,” said Gov. Greg Gianforte. “And we’re doing it by shining a spotlight on the people who make this place what it is. Because the strength of our state isn’t found in slogans or logos, it’s found in our people.”

The Montana Department of Commerce will utilize the new brand for tourism marketing, business attraction, international trade and exports, the Made in Montana program and other economic development activities across the state.

“The new brand fills the role of Montana’s lead brand representing our state,” said Mitch Staley, chief marketing officer at the Montana Department of Commerce. “By promoting our state’s economy, existing and new businesses and showcasing Montana as a place to visit, the new brand features Montanans sharing their stories in ways they can be proud of.”

Montana’s new brand represents a shift from the marketing efforts of the past 16 years. The change enables Commerce to promote Montana’s stories and implement legislative direction for how the department uses lodging tax funds to promote the state for economic benefit.

By featuring residents and amplifying community-led storytelling, the new brand is made for Montana by Montanans. Foundational brand components include:

• The people. This isn't a brand about a place you visit. It's a brand about the people who live it every day.
• The place. Montana isn't something you pose in front of. It's something you step into.
• The stories. A good Montana story isn't just about what happened. It's about what it meant.

The new brand logo was made to represent Montanans, with custom letterforms that echo the geography: wide open, rugged and built to last. Brand colors represent the landscapes, from river bends and burnt skies to lodgepole shade and wheatfield glare. The topographic lines mark elevation, memory and movement – a subtle thread between past and present, charting where we’ve been and where we’re headed.

Elements of the new brand include a newly designed website focused on improving the travel planning experience for both visitors and residents, future highway welcome signs, updated official highway map, wordmark, logo, colors and suite of creative elements.

As part of the brand launch, Commerce is kicking off a new campaign encouraging residents to explore lesser-known destinations across their state this summer, with the call to action, “Go somewhere season.”

Tourism plays a critical role in Montana’s economy, with nonresident visitors contributing a total of $6.1 billion to the state’s economy in 2024, according to the Institute for Tourism and Recreation Research at the University of Montana.

To help Montana residents learn about the new brand and have the opportunity to interact first-hand with the new brand, the state will be going on tour and stopping in each tourism region at the following locations with more being added in coming weeks:

• June 11: Livingston Farmers Market
• June 20: Old Salt Festival in Helmville
• June 22: Missoula Summer MADE Fair
• June 28: Fort Benton Summer Celebration
• July 11: North American Indian Days in Browning
• July 12: Montana Governor's Cup Walleye Tournament

The public is encouraged to attend tour events to learn about the new brand and connect with representatives from the Montana Department of Commerce, regional destination marketing organizations, tribal nations and local community organizations. Tour stops will also feature opportunities for Montanans to share their stories for use in future marketing efforts.

Event attendees will have the opportunity to participate in demonstrations and see how they can be a part of their state’s new brand strategy.

The state conducted extensive research to ensure the new brand aligns with both resident and visitor feedback. Multiple state and regional competitive analyses helped guide the initial research, along with different phases of creative testing. More than 1,600 Montanans and out-of-state residents were surveyed, three rounds of focus groups were conducted and leaders from tribal nations in Montana shared feedback to help shape the final brand.

The new brand was unveiled on a 1968 Chevrolet C-10 ahead of the annual World Famous Miles City Bucking Horse Sale. While Montana’s new brand will live on long after the truck is parked, the Montana Truck represents the classic, genuine nature of Montana and features new campaign creative elements painted on the side of the vehicle, along with the new Montana wordmark on the back tailgate that will help introduce the brand to Montanans.

Get to know the new Montana brand and the people, places and stories at its heart by going to visitmt.com and exploring the brand overview. The website also features detailed trip-planning and event information that can be used by residents and visitors.

Property Taxes in the 2025 Legislative Session

Depending on who you ask, the Legislature either significantly reduced Montana primary homeowners' property taxes, fundamentally restructuring the rates in a way that constitutes real reform, or it kicked the can down the road by shifting rates and requiring large businesses and second-home owners, in particular, to cover the balance without fundamentally reforming the way property taxes are levied. While the Legislative session began with a near-universal belief that voters sent their representatives to Helena to fix property taxes, the schism between various factions became evident quickly. 

From the outset, there was a concerted effort by some legislators to divert existing tourism funding—specifically the lodging facility use tax, or bed tax—to pay for property tax rebates. These proposals, including SB 90 and related bills, would have directly undermined Montana's long-standing funding structure supporting tourism marketing and destination development. Those efforts were defeated thanks to strong, coordinated opposition from the lodging and tourism industry, including multiple rounds of testimony and advocacy.

Down on the first floor of the Capitol, House Appropriations Committee Chair Rep. Llew Jones (R-Conrad) was busy crafting HB 231, an outgrowth from discussions held by the Governor’s Property Tax Task Force convened during the Interim. HB 231 began as a way to establish homestead, com-stead, and ag-stead exemptions to lower taxes on primary residences by raising them on second homes and short-term vacation rentals. It introduced bifurcated rates for residential and commercial properties to differentiate between primary homeowners and others, and small and large business entities. Governor Gianforte endorsed the framework as his preferred approach to property tax relief. 

Meanwhile, SB 542 (Galt, R-Martinsdale) was originally introduced as a temporary 2-year property tax rate freeze; however, it was significantly amended in the House to mimic HB 231, whose fate was in question as the session wore on. Simultaneously, HB 528 (Byrne, R-Bigfork) began to gain steam. It would simply slash tax rates for residential, commercial, and agricultural property to offset rapid property value growth, implementing the rebalance approach championed by Democrat Ryan Busse in the 2024 gubernatorial election. This allowed Jones and his allies to make the bifurcated rates concept seem favorable by comparison; Jones emailed business lobbyists claiming that, if implemented, the “simple” HB 528 would actually increase taxes 24% on industrial ratepayers. HB 528 later died in the Senate. 

But key opponents to HB 231 (and the modified SB 542), including the Montana Chamber of Commerce and the Montana Taxpayers Association, still attempted to derail that effort, arguing that the shift would hurt Montana’s economy by raising property taxes on businesses and thus impact the state’s economic competitiveness. These arguments weren’t enough for legislators; HB 231 and SB 542 advanced together following a late session conference committee, and both were passed by the Legislature, with HB 231 ironically becoming coordinating language for SB 542, now the primary vehicle for property tax reform. The bills authorized interim tax rates and $400 rebates for 2025, before full implementation of the tax shifts occurs in 2026. These rates differentiate between owner-occupied homes and other types of residential property, such as second homes, vacation properties, and short-term rentals. Short-term rentals will now be subject to significantly higher property tax rates, an increase of approximately 68%, under the new system.

 Both bills have been signed into law by the Governor.

Exclusive Member Benefits - HUB International

Key April Trends

Montana Overall: Occupancy declined to 53.0% (from 54.7% in April 2024), with RevPAR down -2.2% year-over-year. ADR held relatively flat at $119.71, showing only a slight increase from last year. While rates remained stable, the decline in occupancy led to softer performance across the state.

Billings: Occupancy fell to 57.0% (from 60.5%), and ADR dropped to $104.87, resulting in a RevPAR decline of -9.2%. Total room revenue decreased by 5.8%, indicating continued demand softening in the region.

Bozeman/Yellowstone: Occupancy was 56.3%, down from 58.8%, but ADR rose to $173.21. The net impact was a RevPAR change of +3.2%, and total room revenue increased by 4.6%, showing strong rate-driven growth despite lower occupancy.

Missoula: Occupancy dropped to 51.5% (from 54.5%), but ADR increased to $117.56. RevPAR fell by 3.2%, and total room revenue decreased by 1.9%, reflecting a mixed trend of stronger pricing amid lower demand.

Helena/Great Falls: Occupancy fell to 50.6% (from 53.7%), and ADR decreased slightly to $109.10. RevPAR dropped by 6.3%, with a total room revenue decline of 5.9%, indicating weakening travel activity across central Montana.

Butte: Occupancy declined to 47.1% (from 50.4%), while ADR dipped to $101.96. RevPAR was down by 10.0%, and total room revenue fell 9.1%, continuing a downward trend for the Butte market.

Kalispell/Flathead: Occupancy increased slightly to 46.9% (from 45.6% in April 2024), while ADR rose to $110.83 (up from $106.63). RevPAR improved by 7.0% year-over-year, indicating moderate growth driven by stronger room rates and a slight uptick in demand. 

Updates from the Department of Commerce

Native American Collateral Support Program funding available: The NACS Program is currently accepting applications; $91,007.51 in cash funding is available, with an additional $10,125 expected by the end of May. For more information, contact Program Specialist Chris Ryan at chris.ryan@mt.gov or 406-841-2594.

Tourism Advisory Council Public Meeting: June 3-4, 2025, in Glasgow or join by Zoom. 

The Montana State Small Business Credit Initiative 2.0 Loan Participation Program application portal for remaining Tranche Three funds is now open and will close at midnight on June 30, 2025. Participating lenders who have funds available for recycling must access those funds prior to applying for the remaining Tranche Three funds. This is expected to be the final round of SSBCI funding. Future opportunities will be supported through recycled SSBCI 2.0 funds as loans are repaid.

The Montana State Small Business Credit Initiative 2.0 Loan Participation Program-Recycled Funds application is now open and will remain so for the duration of the program, with capital availability contingent on repayments from existing borrowers. For more information, view the recent SSBCI press release.

Updates from the American Hospitality and Lodging Association

AHLA priorities remain in House reconciliation package, H.R. 1, which includes key tax provisions critical to the hospitality industry. Among them:

• Permanency for the Small Business Deduction (Section 199A) and an increase of the Qualified Business Income deduction
• Preserving the Like-Kind Exchange (Section 1031)
• Extending bonus depreciation at 100% for almost five years

Senate approves No Tax on Tips: The U.S. Senate passed by unanimous consent S. 129, the No Tax on Tips Act sponsored by Senators Ted Cruz (R-TX) and Jacky Rosen (D-NV). The bill would create a new tax deduction of up to $25,000 for cash tips and would expand the business tax credit for the portion of payroll taxes that employers pay on certain tips.

Oxford Economics announced that its expectations for U.S. inbound travel in 2025 remain negative, though improving slightly. They forecast an 8.7% decline in U.S. international arrivals for the year overall, a reduction from the 9.4% decline they predicted in March.