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HB 842

Legislative referendum on sales tax to fund education

2025 Regular Session Introduced by Brad Barker

HB 842 would have placed a voter referendum on implementing a new Montana sales tax to fund education, but died in committee due to missed procedural deadlines.

(H) Died in Process
#colleges(seealso:universitysystem) #referendum #schoolfinance #schoolsandeducation #taxation(generally) #taxation--property #taxation--sales #universitysystem(seealso:colleges)
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Bill Summary · HB 842

Legislative bill overview

HB 842 proposed a legislative referendum that would allow Montana voters to decide whether to implement a new sales tax dedicated to funding education. The bill would have placed the tax question directly on the ballot for public approval rather than allowing the legislature to enact it unilaterally.

Why is this important

Sales taxes represent a significant revenue mechanism that directly affects consumer spending and state budgets. Educational funding directly impacts school quality, teacher salaries, and student resources, making this a consequential policy choice. A referendum approach gives voters direct input on a major fiscal and education policy decision.

Potential points of contention

  • Regressivity concerns: Sales taxes disproportionately burden lower-income households since they spend a higher percentage of income on taxable goods, whereas higher earners can save more
  • Revenue predictability: Sales tax revenue fluctuates with economic cycles, creating uncertainty for education funding stability compared to more stable revenue sources
  • Tax burden philosophy: Disagreement over whether education should be funded through consumption taxes versus income taxes, property taxes, or other mechanisms

Compiled from official sources — confirm details with the bill’s official record.

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