On April 20, Yellowstone County Treasurer Hank Peters noticed something unusual while preparing the 2026 property tax bills: mobile home owners face significantly higher property tax increases compared to previous years. This issue, reflected in tax bills sent out earlier than most, signifies a broader trend affecting several Montana counties. Treasurers from five counties expressed concern over new legislation requiring homeowners to opt in for lower tax rates, which many did not, resulting in higher bills.
The legislative changes from the 2025 session created disparities in tax rates, with primary residences and long-term rentals eligible for reduced rates. Homeowners had to apply for these lower rates, but significant gaps in enrollment left many mobile home owners facing unexpected tax hikes. For instance, a Billings mobile home’s taxes nearly tripled from $678 in 2025 to $1,941 in 2026, while a Frenchtown home’s taxes rose from $561 to $1,574.
“These are people already on the edge financially,” said Missoula County Treasurer Tyler Gernant. Mobile home owners, often on fixed incomes, are disproportionately affected. Jefferson County Treasurer Terri Kunz voiced concerns about residents’ ability to afford the increased taxes.
The new tax laws aim to distinguish between primary residences and second homes, with the latter facing higher rates. However, homeowners failing to opt in are taxed like secondary residences. State officials stress outreach efforts were extensive, yet some residents believe glitches in the system may have contributed to the enrollment shortfall.
Approximately 400,000 Montana households are receiving property tax relief, but mobile home owners who did not apply for the homestead exemption are not benefiting. The Revenue Department sent reminders about the need to apply, but many mobile home owners remain unaware of the changes and their potential impact.
Mobile homes, generally not appreciating in value, have still seen tax hikes. In Yellowstone County, 3,346 of 5,800 mobile homes were taxed at higher rates. Similarly, Gallatin County saw 65% of its mobile homes taxed at increased rates. These hikes are compounded by rising rents in mobile home parks, further straining finances.
The Department of Revenue has opened applications for property tax exemptions for the 2027 tax year online. Eligible homeowners are encouraged to verify their exemption status to avoid future tax increases.
—
Read More Montana News
