Gov. Greg Gianforte’s property tax relief bill faced a setback with a tie vote in the Montana Senate, intensifying an ongoing debate among state legislators. This vote underscores the challenges in addressing the increasing residential property taxes in Montana, with lawmakers having limited time to find common ground. The proposal was part of a suite of bills aimed at offering tax solutions before the legislative session concludes.
Senate lawmakers expressed skepticism over Gianforte’s plan to adjust tax rates, which would reduce homeowner taxes by shifting burdens to other property categories. Instead, Senate Republican leaders favor rebate bills that utilize non-property tax funds to reduce homeowner taxes. Gianforte remains firm against using income tax revenue for property tax relief, complicating efforts to offer significant homeowner discounts.
House Bill 231, crafted by House Appropriations Chair Llew Jones, R-Conrad, aimed to lower taxes on primary homes and long-term rentals while increasing them on secondary and short-term rentals. This approach sought to minimize tax shifts to business properties and maintain local tax revenues supporting essential services. Though it passed the House with substantial support, Senate opposition stalled its progress.
The bill met with resistance on the Senate floor, with both parties opposing it, except for Whitefish Sen. Dave Fern, who advocated for its passage. Senate Taxation Chair Greg Hertz, R-Polson, opposed the bill, citing concerns over potential tax hikes for secondary home and Airbnb owners. Other opponents, including Sen. Jeremy Trebas, R-Great Falls, criticized it as “unabashed socialism.” Democratic senators also raised issues about potential misclassification of primary residences leading to unexpected tax increases.
Earlier on Thursday, an attempt to revive Senate Bill 90, which proposed using lodging tax funds for annual property tax rebates, failed in the House. House Majority Leader Steve Fitzpatrick, R-Great Falls, urged patience as discussions for a compromise continued. He noted corporate lobbying pressures favoring SB 90, arguing it wouldn’t increase industrial or high-value real estate taxes. Despite support, the push for SB 90 stalled with a 38-59 vote. These legislative maneuvers reflect ongoing efforts to address Montana’s property tax concerns as the session deadline approaches.
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