Property Tax Discussions Wander, but Still No Single Idea Seems to Have Enough Support
HB 231 was taken off the table as governor applies pressure for tax relief
By Jordan Hansen for the Daily Montanan
The mandate the Montana Legislature and governor put themselves under to address their constituents’ property tax concerns remains the same — find some relief.
A mix of policies, ideas, amendments and bills legislators say could fit together continue to be discussed in both chambers.
The property tax winds have shifted every week, and sometimes daily, but now just 19 legislative days remain, at most.
Governor Greg Gianforte, who has previously put pressure on the Legislature to come up with tax relief, on Thursday again hammered on his concerns at a press conference.
“We can’t put property tax relief or income tax relief on ice this legislative session,” Gianforte said. “If legislators don’t deliver on meaningful, permanent income and property tax relief, they will be on thin ice with Montana voters.”
House Bill 231, known as the Homestead bill, is the governor’s preferred plan for property tax relief, and supported by his property tax task force.
HB 231 was taken off the table on Wednesday in the Senate Taxation Committee. It’s a bill from Representative Llew Jones, R-Conrad, and would shift some of the tax burden onto those who are not residents of the state, but own property in Montana.
In a media availability this week, Senate Majority Leader Tom McGillvray, R-Billings, said it would be a “disaster” for Billings and lead to a $7 million to $8 million hit on that city’s budget due to the way the city handles mills.
“(SB 231 is) just a non-starter for senators from that area,” McGillvray said Tuesday. “So there has to be some thoughtful negotiation around how we’re going to solve property tax, but I want to see some property tax reform, and I think there’s some competing options.”
HB 231 was introduced in late January, but has faced hurdles, both directly and indirectly.
A number of alternative property tax proposals — such as House Bill 528 from Representative Ed Byrne, R-Bigfork, a recent major entry — have tried to balance what legislators have referred to as a “water bed,” or pushing down on one side, but seeing an unwanted increase on the other side.
Byrne’s bill seeks to drop agricultural and residential property taxes but it would likely increase taxes on industrial properties.
House Bill 155, sponsored by Representative Mark Thane, D-Missoula, seeks a graduated tax rate for residential properties based on market value. House Minority Leader Katie Sullivan has called it the Democrat’s “go bill.”
Thane’s bill had a hearing in the Senate Taxation Committee last week, at the same time Byrne’s bill passed a second reading in the House. Both legislators said this week their bills aren’t directly competing with one another, but it’s unclear whether either will gain momentum.
Indirect alternatives to provide relief include tax credits and rebates, but Democrats, including Representative Jonathan Karlen, D-Missoula, have said the rebates won’t be enough, and Sullivan echoed this on Tuesday.
“House Democrats put out a property tax rate bill first thing this session, and here we are, and we still don’t have a bill on the governor’s desk,” Sullivan said. “We have tried, and I think I’m pretty disappointed in the Republicans on a whole, that we still don’t have a way to at least create a solution to this.”
Senate Bill 90, brought by Senator Carl Glimm, R-Kila, to use money from tourists to offset bills for homeowners, has been a preferred plan by Senate leadership, but the bill ended up tabled in a House committee.
Two bills from Senator Greg Hertz, R-Polson, SB 204 and 205 along, with SB 117 from Senator Daniel Zolnikov, R-Billings, were cited by Senate President Matt Regier, R-Kalispell, as a suite of options last week. Also, a proposal to allocate $10 million of general fund dollars toward property tax relief is one component of the omnibus House Bill 924.
Senator Wylie Galt, R-Martinsdale, has introduced two bills that are “last-ditch” options. One bill would put a two-year pause on property taxes, while another would offer homeowners rebates of up to $400 dollars. Both bills passed the Senate and are scheduled for hearings before a House committee.
Legislative leaders and the governor have acknowledged the shrinking timeline to get property tax relief passed, but continue to emphasize that it’s a top priority left for lawmakers to accomplish.
Gianforte did expresses some optimism, saying “we are in the home stretch,” and said the Legislature is hard at work.
“At the risk of sounding like a broken record,” Gianforte said, “Montanans’ income and property taxes are too high.”