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Gianforte Reviews Property Tax Reform Proposals, Highlights Support for Homestead Exemption

August 19, 2024

On Thursday, Governor Greg Gianforte met with members of his appointed task force to discuss their recommendations for property tax reform. The governor offered feedback on the proposals, which are expected to be a major topic in the upcoming legislative session.

The meeting, held at the Capitol in Helena, featured an overview of the task force’s final report, which has been under development since February. Gianforte commended the group’s efforts and praised the overall report, noting its alignment with his directive to address rising property taxes and provide relief for Montana homeowners.

“I charged the task force with addressing rising property taxes and restraining their growth to help Montana homeowners. And that’s exactly what you’ve done,” Gianforte said. “We have good work product.”

Among the recommendations, Gianforte expressed clear support for a proposed “homestead exemption.” This key element of the task force’s report would offer tax reductions for primary residences and long-term rentals while increasing taxes on second homes and short-term rentals, such as those listed on Airbnb. The proposal aims to adjust conversion rates to determine taxable value, lowering them for primary homes and raising them for non-primary residences.

“If adopted, this could provide 15 to 20% permanent property tax relief for 215,000 Montana homeowners, 130,000 long-term renters, and 32,000 small businesses,” said Rep. Llew Jones, R-Conrad, chair of the task force subcommittee behind the recommendation. “It will also ensure that those who don’t pay income taxes in Montana contribute fairly to the services they use.”

Gianforte affirmed his support for the homestead exemption, emphasizing its potential to offer long-term relief to Montana residents and ensure fair tax contributions from out-of-state property owners.

The task force’s report also includes proposals to make it more difficult for local governments to raise taxes, such as requiring 60% voter approval for mill levies, and to revise the state’s school funding system to distribute property taxes more evenly among high-value industrial properties.

While the governor described these proposals as “innovative,” he did not delve into specifics during the meeting, nor did he seek further input from the media. A spokesperson for the governor’s office, Sean Southard, indicated that Gianforte will review the recommendations with agency directors and legislators to develop legislation for next year.

In a separate press conference, Democratic gubernatorial candidate Ryan Busse, a Kalispell-based gun control activist and author, criticized the task force but offered no alternative proposal.

Legislative Democrats also presented an alternative tax relief plan on Thursday. This plan would reduce taxes on modest homes by shifting some burden to more expensive properties, while including provisions to shield small businesses from increased taxes. Unlike the task force’s proposal, this plan would not differentiate between primary and non-primary residences.Senate Minority Leader Pat Flowers and Rep. Jonathan Karlen, who support the alternative plan, argued that it would offer fairer treatment for low- and middle-income property owners.

By: Big Sky Headlines staff

Filed Under: Featured, Home Featured, News

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