Montana Mobile Home Owners Face Sharp Property Tax Increases as Opt-In Reform Leaves Many Behind
Why It Matters
Montana’s 2025 property tax reform was sold as relief for homeowners — and for many, it delivered. But county treasurers across the state are now raising alarms that a significant number of mobile home owners are about to receive tax bills dramatically higher than last year, because they never enrolled in the new lower-rate program. For residents already living close to the financial edge, the consequences could be severe.
What Happened
Yellowstone County Treasurer Hank Peters was processing some of the first 2026 property tax bills in late April when he noticed the numbers looked far higher than prior years for mobile home properties. His observation turned out to be part of a statewide pattern.
Treasurers from five counties — Yellowstone, Missoula, Gallatin, Valley, and Jefferson — all flagged the same problem: a large share of mobile home owners failed to apply for the homestead exemption created under last year’s property tax overhaul. Without that enrollment, their properties are now taxed at the higher rate applied to second homes and short-term rentals, a category far more expensive than the prior baseline.
The new law, passed during the 2025 legislative session and championed by Republican Gov. Greg Gianforte as meaningful tax reform, restructured how residential properties are taxed. Primary residences and long-term rentals qualify for lower rates — but only if the owner proactively applies through the state Department of Revenue and is approved. Those who did not complete the process are assessed at rates that, for many, represent a dramatic increase over what they paid before.
By the Numbers
- One Billings mobile home saw its property tax bill jump from $678 in 2025 to $1,941 in 2026 — nearly a threefold increase.
- A mobile home in Frenchtown went from $561 to $1,574 in a single year.
- State officials report that 80% of Montana homeowners saw a reduction of 5% or more on their 2025 tax bills under the same reform package.
- The Department of Revenue says it auto-enrolled approximately 230,000 property owners who claimed the 2025 $400 homestead rebate into the lower exemption rate.
- The department conducted outreach in October 2024 and February 2025 to notify homeowners of the requirement to apply.
Officials Express Concern — and Some Skepticism
Jefferson County Treasurer Terri Kunz put it bluntly: “I have a deep concern about this because some of these people are not going to be able to afford these increased taxes.”
Missoula County Treasurer Tyler Gernant echoed that concern, noting that mobile home residents tend to be among the more financially vulnerable property owners in the state. He also raised a separate issue — that some residents who claimed the 2025 rebate and should have been automatically enrolled appear not to have received the carryover benefit, suggesting possible errors in state systems.
The Revenue Department did not directly address those allegations but noted that if a mobile home owner’s application is still pending when the higher bill arrives, the department will work with county treasurers to correct the rate and revise the bill.
Governor Gianforte’s office defended the rollout. Spokesperson Kaitlin Timken said the governor “is committed to ensuring that everyone who is eligible for property tax relief under the reforms receives it,” and described the department’s outreach as extensive.
Zoom Out
The situation in Montana is playing out as Montana voters may also face ballot initiatives this fall aimed at capping property tax increases, reflecting growing public frustration over rising housing costs statewide. The mobile home tax spike is emerging as the first real-world test of whether the 2025 reform’s opt-in structure is workable — and the early results have given county officials pause. Mobile home values typically stagnate or decline over time, meaning the increased bills are not driven by appreciation, but purely by the enrollment gap.
What’s Next
Tax bills for mobile home owners are being mailed out this month, and county treasurers are bracing for an influx of complaints. The Revenue Department has indicated it will work to resolve pending applications and correct overbilled accounts. How the state handles the fallout could shape how the broader residential property tax reform — which will affect all homeowners when standard bills arrive later this year — is perceived by Montana taxpayers heading into the fall election cycle.
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