Montana Task Force Suggests Property Tax Changes to Governor

In a recent meeting at the Capitol in Helena, Governor Greg Gianforte commended a task force's final report aimed at addressing rising property taxes in Montana. The governor emphasized the need to restrain tax growth to support homeowners and endorsed a proposed "homestead exemption" as a key recommendation. This exemption would lower property taxes for primary residences and long-term rentals while increasing taxes on second homes and short-term rentals, targeting out-of-state property owners. Gianforte expressed strong support for the homestead exemption, stating it would ensure that non-resident homeowners contribute fairly to local services such as schools and emergency response. However, questions regarding the governor's stance on other recommendations from the task force were left unanswered by his spokesperson. Critics, including former state representative Busse, argued that the state should first adjust property conversion rates to alleviate the tax burden on homeowners, a strategy previously employed by past governors. Busse acknowledged the potential benefits of the homestead exemption but insisted that a basic adjustment of conversion rates should take precedence. He raised concerns that a simple rebalancing of tax burdens could negatively impact farmers and small businesses, particularly as the number of large industrial taxpayers declines. Meanwhile, legislative Democrats proposed an alternative tax relief plan aimed at reducing taxes on modest homes while shifting some burden to more expensive properties, asserting that their approach would be fairer to low- and middle-income property owners.