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Enacted

Montana bars Department of Revenue from blocking alcohol license transfers over seller tax debts

Original title: Revise alcohol laws relating to transfer of a license

Last action · April 18, 2025: Chapter Number AssignedSponsor: Wylie Galt

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Does

Montana law now prohibits the Department of Revenue from denying an alcohol license transfer solely because the seller owes unpaid taxes, penalties, or interest. Sale proceeds remain subject to any existing state tax liens or warrants, and the law takes effect immediately upon passage and approval.

Why it matters

Sellers with outstanding tax liabilities can complete license sales to new operators, while the state directs sale proceeds toward satisfying existing tax liens against the seller.

Background
  • Montana regulates the distribution, sale, and transfer of alcoholic beverages through the Department of Revenue under Title 16 of the Montana Code Annotated. context
  • Senate Bill 241 was introduced during the 69th Legislative Session in 2025 by Senator Wylie Galt and enacted as Chapter Number Assigned. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

alcohol license sellers

Sellers with outstanding tax liabilities can complete license transfers to purchasers, with sale proceeds applied to settle existing state liens.

Directly affected

license purchasers

Purchasers are no longer blocked from acquiring an alcohol license solely due to the previous owner's unpaid tax debts.

Directly affected

Department of Revenue

The department is prohibited from using seller tax debt as the sole reason to deny a license transfer, shifting recovery efforts to the sale proceeds.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Can the state still collect unpaid taxes from a business selling its alcohol license?
Yes. Any proceeds from the sale of the license are subject to existing liens or warrants filed by the Department of Revenue against the seller.
Does this law apply to license transfer applications submitted before it passed?
Yes. The act applies to all alcohol license transfers filed before the effective date that were still being considered by the department, as well as those filed on or after the effective date.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Current status: Signed into law.

Procedural history

39 actions
  1. Apr 18, 2025Senate
    Chapter Number Assigned
  2. Apr 17, 2025SenateEnrolled
    (S) Signed by Governor
  3. Apr 8, 2025Senate
    (S) Transmitted to Governor
  4. Apr 8, 2025House
    (H) Signed by Speaker
  5. Apr 7, 2025Senate
    (S) Signed by President
  6. Apr 2, 2025Senate
    (S) Returned from Enrolling
Show 33 earlier actions
  1. Apr 1, 2025Senate
    (S) Sent to Enrolling
  2. Apr 1, 2025House
    (H) 3rd Reading
  3. Apr 1, 2025House
    (H) Scheduled for 3rd Reading
  4. Mar 31, 2025House
    (H) 2nd Reading
  5. Mar 31, 2025House
    (H) Scheduled for 2nd Reading
  6. Mar 21, 2025HouseCommittee
    (H) Committee Report
  7. Mar 21, 2025HouseCommittee
    (H) Committee Executive Action
  8. Mar 13, 2025House
    (H) Hearing
  9. Feb 25, 2025Senate
    (S) Fiscal Note Received
  10. Feb 25, 2025Senate
    (S) Fiscal Note Signed
  11. Feb 21, 2025Senate
    (S) Fiscal Note Received
  12. Feb 17, 2025Senate
    (S) Fiscal Note Requested
  13. Feb 13, 2025House
    (H) 1st Reading
  14. Feb 13, 2025HouseCommittee
    (H) Referred to Committee
  15. Feb 13, 2025Senate
    (S) Transmitted to House
  16. Feb 12, 2025Senate
    (S) 3rd Reading
  17. Feb 12, 2025Senate
    (S) Scheduled for 3rd Reading
  18. Feb 11, 2025Senate
    (S) 2nd Reading
  19. Feb 11, 2025Senate
    (S) Scheduled for 2nd Reading
  20. Feb 7, 2025SenateCommittee
    (S) Committee Report
  21. Feb 7, 2025SenateCommittee
    (S) Committee Executive Action
  22. Jan 31, 2025Senate
    (S) Hearing
  23. Jan 30, 2025SenateCommittee
    (S) Referred to Committee
  24. Jan 30, 2025Senate
    (S) 1st Reading
  25. Jan 29, 2025SenateIntroduced
    (S) Introduced
  26. Jan 29, 2025House
    (LC) Draft Delivered to Requester
  27. Jan 29, 2025House
    (LC) Draft Ready for Delivery
  28. Jan 28, 2025House
    (LC) Draft in Assembly
  29. Jan 28, 2025House
    (LC) Draft in Final Drafter Review
  30. Jan 27, 2025House
    (LC) Draft in Input/Proofing
  31. Jan 24, 2025House
    (LC) Draft in Edit
  32. Jan 24, 2025House
    (LC) Draft in Legal Review
  33. Dec 15, 2024House
    (LC) Drafter Assigned

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Separation of Tax Debt from License Transfer Approvals

The state shifts its collection mechanism from blocking commercial license transfers to asserting claims directly against the proceeds of those sales.

Connected Entities

Department of Revenue, Wylie Galt, Montana
OrganizationDepartment of Revenue“State agency responsible for tax administration and alcohol license oversight”Map →
PersonWylie Galt“State Senator, District 39”Map →
locationMontana“State where the legislation is enacted”Map →

Sources

Open source document

bills.legmt.gov

Analysis Score

0–100
  • Significance55
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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