Legislative Roundup
Week 3 Lawmakers in Helena Weigh Bills on Property Tax Relief, Wolf Hunting, Beer and Wine Delivery and Government Use of AI
By Emma White and Clayton Murphy UM Legislative News Service U of M School of Journalism
Republican “Homestead Act,” Two Flagship Democrat Tax Relief Bills Begin Their Hearings in Montana House Lawmakers heard first testimony last week on major property tax bills from both sides of the aisle – the Republican-backed “Homestead Act” touted by Gov. Greg Gianforte proposes wide-spread cuts and two Democrat-backed bills target relief on lower-income households.
Rep. Jonathan Karlen, DMissoula, introduced House Bill 154 on Tuesday, Jan. 21, warning a panel of legislators that residents are being priced out of their communities.
The bill aims to make property tax more affordable to low-income taxpayers through a tax credit. House Bill 155, the second of the two Democrat-backed bills, would add a tier structure to property tax.
Property tax relief has been a main talking point for both parties as rates increase across the state. According to analysis from the Montana Free Press, Montanans saw a 21 percent increase in median residential property taxes from 2022 to 2023, an additional $213 million in tax bills across the state.
Rep. Llew Jones, R-Conrad, is carrying House Bill 231, the so-called “homestead” bill championed by the governor’s office. Jones said about 230,000 homeowners would see a 17% reduction in taxes on their primary residences under the bill.
The burden would then fall on properties like vacation homes and short-term rentals, which would see a 53% increase — a hike Jones justified with what he called the “significant likelihood” that their often outof- state owners do not contribute to Montana income tax, and therefore limit the support of state services.
“Well, who cares? Right? They don’t pay Montana income tax. If you look at what property tax is forecasted to bring in, it’s $2.34 billion. If you look what income tax is forecasted to bring in, it’s $2.55 billion,” Jones said at the bill’s hearing on Wednesday, Jan. 22.
The bill also includes an exemption for agricultural land, making sure those taxes are not affected by the shift.
But Rose Bender with the Montana Budget and Policy Center said HB 231’s relief is not targeted enough.
“Currently, extremely high-value homes will see tax decreases that could be used as more significant tax reductions for more moderate- value homes,” Bender said.
Other opponents said they worried the bill would make taxes for larger industries too high.
Karlen’s HB 154 proposes a credit calculated by income and property tax bills. Karlen said, for instance, for a taxpayer with a household income of $69,000 with a $4,000 tax bill, the tax credit would be about $1,100.
“So what this allows us to do is say, your property tax might stay the same or it might go up, but we are going to make you whole through this tax credit,” Karlen said.
