A Montana group is renewing its efforts to cap property tax growth with a proposed constitutional amendment potentially on the 2026 ballot. This group has faced previous legal challenges but continues to push for property tax reforms. Bozeman attorney Matt Monforton, director of Cap Montana Property Taxes, argues that current legislative proposals may not provide sufficient long-term protections for homeowners.
Monforton emphasizes the urgency, stating, “Property taxes are continuing to skyrocket and that will always be the case because Montana homeowners are not protected from inflation.” The proposed initiative would require annual home assessments for tax purposes, contrasting with the current biennial assessments. It aims to cap annual growth in assessed value for primary residences to 2% unless ownership changes, resetting assessments to market value upon sale.
Montana’s Department of Revenue currently assesses residential properties based on market value, which has led to higher tax bills due to the housing market surge. The tax cap initiatives, inspired by California’s Prop 13, aim to protect homeowners from rising taxes, although opponents worry about impacts on funding for schools and local services.
The previous 2022 attempt, Constitutional Amendment 121, failed due to lawsuits and opposition campaigns. Another effort last year was halted when the Montana Supreme Court found it violated the single-subject rule.
Monforton states the new initiative is revised to address past legal issues, focusing solely on capping valuations. He remains optimistic despite anticipated legal challenges, asserting confidence in the proposal’s ability to withstand scrutiny. “We anticipate a blizzard of lawsuits from the state and special interests who will try to prevent homeowners from getting real relief,” he explained, expressing confidence in a favorable legal outcome.
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