Montana lawmakers just wrapped up a dramatic chapter in the 2025 legislative session, and one of the most closely watched bills—Senate Bill 324 (SB 324)—didn’t pass.
If you’ve heard whispers about a possible 1% registration fee for high-end vehicles or a new revenue stream for public infrastructure, that was this bill. And now, it’s officially dead.
What SB 324 Was All About
Montana’s SB 324, introduced by Senator Josh Kassmier, set out to shake up the state’s vehicle registration system, starting with high-end cars.
The bill proposed a new 1% fee on the MSRP of vehicles priced over $200,000, beginning in 2026. But it wasn’t just about collecting more money but about where that money would go.
The proposed revenue would have been funneled into three newly created accounts, earmarked for victim support services, local bridge upgrades, and Montana Highway Patrol funding.
To give the plan a jumpstart, the bill also called for a one-time $50 million transfer from the state’s general fund.
The idea? Luxury vehicle registration fees can be used to help fund essential public services without affecting everyday drivers.
The Bill’s Journey — And Its Sudden End
- February 13, 2025 – SB 324 is introduced.
- April 5, 2025 – The Senate passes the bill.
- April 24, 2025 – The House makes changes and passes it too.
- April 30, 2025 – The Senate rejects the final version with a 25–25 tie. Without a majority vote, the bill dies.
- A last-minute motion to reconsider also fails, sealing its fate for the 2025 session.
Legislators have since confirmed that under Montana’s rules, SB 324 cannot be revived until 2027.
What This Means for Drivers
For now, Montana’s vehicle registration fees remain unchanged—a win for car enthusiasts, collectors, and companies using Montana’s vehicle-friendly tax environment.
But don’t get too comfortable. The failure of SB 324 shows there’s growing interest in taxing high-value vehicle ownership. This could return in a future session, especially with states nationwide looking for new revenue.
While SB 324 is officially off the table for now, it’s a reminder that Montana’s reputation as a vehicle tax haven isn’t immune to change. Keep an eye on future legislation—and if you’re registering a vehicle in Montana, staying ahead of these updates is key.
