Property Tax Task Force Delivers Recommendations To Governor
Author: Eric Dietrich, Montana Free Press
Property Tax Task Force Delivers Recommendations to Governor
Eric Dietrich
Montana Free Press
HELENA — Gov. Greg Gianforte on Thursday listened to recommendations for property tax reform presented by members of his appointed task force while offering limited insight into his support or disapproval of specific proposals that will likely be debated in the upcoming legislative session.
During the 20-minute meeting in the governor’s wing of the Capitol building in Helena, Gianforte generally praised the group’s final report and its efforts since it first convened in February.
“I charged the task force with addressing rising property taxes and to restrain the growth of those taxes to help Montana homeowners. And that’s what you’ve done,” Gianforte told task force members on Thursday. “We have good work product.”
Gianforte endorsed the pursuit of a “homestead exemption” when the Legislature returns to Helena in January — the only element in the list of recommendations the governor explicitly backed.
The task force’s version of that concept, the apparent centerpiece of the group’s report, would reduce property taxes for Montana houses that are used as primary residences or long-term rentals while raising taxes on second homes and Airbnb-style short-term rentals in an effort to capture more tax revenue from out-of-state residents.
Specifically, the proposal would adjust the conversion rates that determine how much of a property’s appraised market value is translated to taxable value, dialing the conversion rate down for primary residences and up for homes that aren’t occupied full-time.
“If adopted, this will provide a 15 to 20% permanent property tax relief, potentially, to 215,000 Montana homeowners, 130,000 long-term renters … and 32,000 small businesses,” said Rep. Llew Jones, R-Conrad, who chairs the task force subcommittee that developed the recommendation. “It will fund itself, in large part, by ensuring that a lot of these folks that don’t pay income tax in Montana participate in providing for some of the services that they consume.”
At the end of the meeting, Gianforte praised that plank of the group’s recommendations.
“I firmly believe that we should move ahead with the homestead exemption to give preference to Montana residents on a primary home,” Gianforte said. “That will provide good long-term relief. It will also ensure that out-of-staters who don’t live here, don’t pay income taxes here, and own second homes here pay their fair share, not only for our schools but law enforcement, roads and bridges, emergency response.”
The task force report also includes other suggestions that would make it harder for local governments to raise taxes by requiring 60% voter approval to pass mill levies and rework a portion of the state’s school funding system so property taxes from high-value industrial properties like mines and power plants are apportioned more uniformly.
The governor on Thursday called those proposals “innovative”, but did not ask the group questions or offer feedback about specific recommendations. The group did not take questions about the report from members of the media.
A spokesperson for the governor’s office, Sean Southard, did not directly answer questions emailed by Montana Free Press Thursday about Gianforte’s assessment of other elements of the task force’s proposals.
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PhotoCredit: Photo Credit: Eric Dietrich / MTFP
Image 1 Caption: Eric Dietrich
Image 2 Caption: Gov. Greg Gianforte addresses members of his property tax task force in the State Capitol building Feb. 14, 2024.
Photo Credit: Eric Dietrich, MTFP
