A proposed bill to mandate revotes on some permanent voter-approved property tax levies was rejected by the Senate floor. This bill, Senate Bill 204, aimed to allow Montana residents to manage local government property taxes. Sponsored by Sen. Greg Hertz, the bill was inspired by a recommendation from Gov. Greg Gianforte’s property tax task force. The measure faced a challenging Senate journey despite the governor’s backing.
Initially defeated 5-6 in Senate Local Government Committee, SB 204 was later debated on the Senate floor but narrowly failed 24-26 on Feb. 27. Senators reconsidered and amended the bill, endorsing it 30-20 on Mar. 1, only for it to be voted down 24-26 in what was supposed to be the final vote. The procedural rules might allow for another reconsideration. Hertz communicated uncertainty about this possibility with a shrug emoji text.
The original bill required new elections every ten years to reauthorize voter-approved mill levies for services like libraries and police. Bond measures for construction projects would have been exempt. A Senate amendment excluded levies funding education, law enforcement, and emergency services.
Hertz argued for periodic voter re-evaluation of tax priorities, especially for new residents. However, local leaders expressed concerns about revotes endangering funding for essential services like libraries and parks. Belgrade Mayor Russ Nelson noted potential threats to new facilities, saying, “If this has to be revisited, we may not be able to keep the brand-new library open for the hours we anticipate.”
This bill is among several targeting property tax issues by reducing local revenues. Senate Bill 205, another by Hertz, sought to increase thresholds for bond and levy approvals, requiring higher voter turnout and supermajority votes, but failed at 25-25 on Feb. 27. Senate Bill 117 proposes revising the state’s property tax growth cap. It plans to align the cap with inflation, adjusting new construction exceptions, shifting the tax burden to new developments.
House Bill 20 would require new levies to be approved in dollars, not mills, providing taxpayers predictability. However, opponents worry it could hinder appropriate levy scaling with inflation. HB 20 passed both chambers with broad support and awaits a House reconciliation vote due to a Senate amendment.
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