A new proposal to limit local property tax hikes to 2% was introduced on Monday by Republican legislator Wylie Galt from Martinsdale. This measure aims to amend the state Constitution to cap property tax increases at 2% for all local entities, excluding property improvements and newly constructed homes. The restriction applies to “residential, commercial, agricultural, industrial, timber, and all other property tax classifications.”
This initiative marks the third property tax-related measure attempting to qualify for the 2026 ballot, with two others already approved for signature gathering. During his time as a state senator, Galt played a key role in passing two property tax bills in the 2025 Montana Legislature that established a $90 million homeowner tax rebate and revised property taxes by lowering rates for primary residences and increasing them for non-primary ones.
Two of Galt’s Republican colleagues, Taxation Committee Chair Greg Hertz and Majority Leader Tom McGillvray, along with former state Sen. Keith Regier, have filed a lawsuit challenging the new tax law, claiming Galt’s bill, backed by Gov. Greg Gianforte, altered too many legal sections at once. A successful lawsuit could revert tax laws to their 2024 status.
Travis Hall, a spokesperson for the initiative, stated, “While the property tax reforms…have helped alleviate residential property taxes across the board, people still want more relief.” Hall, once Gianforte’s senior adviser, highlighted that county property taxes increased annually by 6.19% from 2001 to 2022, according to the Legislative Fiscal Division.
To appear on the ballot, the initiative must pass reviews by the state legislative services division and Attorney General Austin Knudsen. Upon approval, it will need over 60,000 Montana voters’ signatures by June 19. Local officials contacted have yet to comment on the initiative’s implications.
The cap excludes school district levies or voter-approved tax increases. Galt expressed pride in past reforms with Gianforte to cut property taxes for 80% of Montana homeowners but stressed the need for further action. Former legislator Matt Monforton criticized the initiative for too many exceptions and is representing legislators in the current lawsuit against the 2025 tax law. Monforton’s initiatives, CI-129 and CI-130, propose limiting property value increases to 2% annually unless ownership changes.
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