HELENA, Mont. — Governor Greg Gianforte’s property tax task force released 12 recommendations to reduce the tax burden on Thursday.
Members of the group, including Republican Senator Greg Hertz, made these guidelines public more than seven months after Gianforte founded the group.
“We need long-term property tax relief for Montanans and small business owners, and I think these recommendations provide long-term relief for both of those taxpayers,” said Hertz, who represents Polson County.
The written report contains twelve proposals, starting with the idea of a property tax exemption. It would reduce tax rates on primary residences, long-term rentals and commercial properties below a certain threshold.
According to the recommendation, the exemption would provide tax relief for more than 215,000 primary residences, over 32,000 commercial properties and indirectly for more than 130,000 renters in Montana.
Other proposals would phase out voter taxes, with the exception of bond taxes, after 10 years. Members also recommend limiting the taxes to dollar amounts rather than per thousand.
In particular, the report proposes that approval of a tax would require a majority of 60% of voters, rather than a simple majority.
“Right now in Montana, because of election times, we have a minority of voters, while the majority of voters raise taxes on all taxpayers,” Hertz said. “So what we’re trying to do is get more taxpayers involved in the election process and encourage local governments and schools to better explain their needs to all taxpayers so that more people buy and support their local schools and local governments.”
The report ends by calling on the state legislature to review current property tax assistance programs, which would not reduce coverage but could potentially increase it, Hertz told NBC Montana.
“As inflation rises, property values rise. We need to make sure that those who qualify continue to do so and we don’t penalize them,” he said.
