Montana

Gianforte-backed property tax measure would offer homeowner relief by raising taxes on second homes, Airbnbs

Published

11 months ago

January 23, 2025

Gianforte-backed property tax measure would offer homeowner relief by raising taxes on second homes, Airbnbs

A property tax relief measure touted by Gov. Greg Gianforte as his signature response to widespread public angst over rising residential tax bills would lower taxes on primary residences by raising them on second homes and Airbnb-style short-term vacation rentals.

Heard before the House Taxation Committee Wednesday, the proposal drew praise from members of Gianforte’s tax task force but opposition from large businesses worried it would raise their taxes and progressive groups that want lawmakers to adopt tax measures that provide more relief to lower-income taxpayers by leaning harder on wealthier residents.

House Bill 231, sponsored by Rep. Llew Jones, R-Conrad, would also offer tax savings to landlords with long-term tenants and to smaller businesses that own commercial properties.

Specifically, the bill would divide the state’s existing residential property category into a bifurcated system, lowering rates used to calculate taxes for owner-occupied homes and long-term rentals while raising them for other residential properties.

The measure would also split the state’s commercial property category into two rate brackets, offering a lower rate to approximately the first $2 million of business value.

The Montana Department of Revenue would be responsible for tracking which residential properties qualify for the lower rates, starting with the list of properties that were granted one-off homeowner property tax rebates the past two years and shifting to an application program over time.

Jones argued Wednesday that the proposal represents a reasonable effort to provide tax relief without shifting an undue amount of tax burden onto non-residential properties. He also said he’s deliberately trying to raise property tax bills for part-time residents who use public services while living in Montana but file their income taxes elsewhere.

“Without a sales tax, it’s fairly difficult to have those folks participate in this economy,” he said.

Democrats pitch property tax relief via income tax credit

A measure pitched by the Democrats in the Montana Legislature would take aim at rising homeowner property bills by offering an income tax credit, offsetting a portion of property tax payments for homeowners and renter households earning up to $150,000 a year.

Part of the challenge facing the state’s tax system, Jones said, is that Montana’s gradual transformation from a natural resource-heavy economy to one increasingly driven by destination tourism has eroded much of the property tax base that once paid much of the bill for local services like law enforcement and education.

Jones presented the tax committee with data indicating that the fraction of the Montana property value contained in residential properties has grown dramatically in recent decades, up to 76% in 2023 versus 29% in 1985. In contrast, the share of the tax base represented by major industrial properties has declined dramatically, down to 5% in 2023 from 23% in 1985.

By raising taxes on second homes such as Yellowstone Club mansions, the bill would in effect try to use them as a replacement for the state’s historic industrial tax base. Jones also said Wednesday that he believes offering preferential tax treatment to long-term rentals over Airbnb-style short term rentals could encourage property owners to make more housing available to permanent residents.

Jones said he estimates his bill would reduce property taxes for about 230,000 primary residences by an estimated 17%. He also estimates that 130,000 rental properties and 32,000 small businesses would see similar reductions. MTFP estimated previously that the median residential property tax bill increased by 21% between 2022 and 2023.

The proposal drew support at Wednesday’s hearing from Gianforte’s budget office, as well as public education advocates, the National Federation of Independent Business, AARP Montana and the Montana Farm Bureau Federation.

“Ultimately it’s a solution that keeps property taxes inside the property tax system. It doesn’t require a personal income tax bailout into the property tax system,” said Ryan Evans, the assistant director of the governor’s budget office.

Bed-tax-to-property-tax-relief proposal slammed by tourism advocates

Lawmakers who want to offer residents substantial immediate property tax relief face an inescapable mathematical reality: Unless they want to force local governments to lay off cops and teachers, the money to lower residential property tax bills has to come from somewhere. That somewhere, for one of the first major tax relief proposals to come up for hearing before a legislative committee this year, is the $120 million a year collected by the state’s pair of bed taxes.

The bill was opposed by the Montana Chamber of Commerce and other business advocates, who worried that lower taxes on residences and small businesses would end up forcing larger businesses to pick up the tab.

Bob Story, the executive director of the Montana Taxpayers Association, testified that the bill would mean a property tax increase of at least $1,000 for more than 900 Montana companies, with several facing increases of more than $100,000.

“They’re large companies, sure, but that doesn’t mean they have all kinds of money to pay additional taxes,” Story said.

Some advocates for a more progressive tax system also spoke in opposition.

Rose Bender, a researcher with the Montana Budget and Policy Center, said she believes the bill is too generous to higher-value homes and not generous enough to less valuable ones.

“This bill needs to better target relief to low- and moderate-value homes,” Bender said.

Like other property tax relief bills heard by legislative committees this week — among them a bill that would divert bed tax dollars from tourism promotion to property tax relief and another that would offset property taxes with a state income tax credit — Jones’ bill faces a committee vote and potential amendments as the first of several hurdles it must clear en route to the governor’s desk.

Gianforte said during his Jan. 13 State of the State address that he wants to be able to sign the measure into law by mid-February so the state Department of Revenue can implement its provisions this year, a timeframe that would require it to advance rapidly through the Montana House and Senate.

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Montana

Montana Morning Headlines: Tuesday, December 16, 2025

Published

4 hours ago

December 16, 2025

Press Room

WESTERN MONTANA — Here’s a look at Western Montana’s top news stories for Tuesday.

The Flathead County Sheriff’s Office reports the suspect in last Thursday’s attempted kidnapping at a Kalispell gas station has been identified and arrested. The incident occurred at Woody’s gas station at Highways 35 and 206, where a man allegedly attempted to rob and kidnap a woman sitting in her car. (Read the full story)

Flathead County attempted kidnapping suspect in custody

The Bureau of Land Management is offering $1 permits for people to cut their own Christmas trees on public land, with options including Douglas fir, lodgepole pine and western larch. Harvesters must stay at least a quarter-mile from roads and rivers, with BLM encouraging people to target overcrowded areas where thinning would benefit forest management. (Read the full story)

Bureau of Land Management offering $1 Christmas tree permits

Two reindeer from a farm in Washington brought Christmas magic to Murdoch’s Ranch & Home Supply in Missoula on Dec. 6, featuring 10-year-old Candy and 1.5-year-old Elsa posing for photos and meeting dozens of families. The reindeer, raised by Jordan Duncan at Reindeer Express near Spokane, spend their off-season splashing in water and munching grass before returning to holiday duties. (Read the full story)

Creature Features: Reindeer for Rent

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Montana

Montana-Montana State’s FCS semifinal get-in ticket prices surpass College Football Playoff games

Published

16 hours ago

December 16, 2025

Press Room

Montana-Montana State’s FCS semifinal get-in ticket prices surpass College Football Playoff games

Montana-Montana State, known as the Brawl of the Wild, is one of the best rivalries in FCS. This year, more than bragging rights are on the line, as the matchup will take place in the FCS semifinals.

The high stakes and relatively smaller seating capacity have made this game the most expensive entry-level ticket in college football this weekend, including the first round of the College Football Playoff.

The cheapest ticket for the game at Bobcat Stadium in Bozeman, Montana, is $675 on Gametime Tickets compared to about $350 for the Miami at Texas A&M game, which is the most expensive of the four first-round College Football Playoff matchups. The most expensive ticket for the FCS semifinal is a sideline seat priced at $1,152. The Miami-Texas A&M game has Founder Club tickets listed at $2,484.

The seating capacity for Bobcat Stadium is 20,767, compared to more than 102,000 at Texas A&M’s Kyle Field. The other three CFP games this weekend will be hosted by Oklahoma (capacity 80,126), Ole Miss (64,038) and Oregon (60,000).

Next year’s Montana-Montana State matchup starts at $876, with some tickets listed as high as $1,359.

Montana State is the No. 2 seed in the playoffs at 12-2 after defeating Stephen F. Austin 44-28 in the quarterfinals this past weekend. Third-seeded Montana is 13-1 and beat South Dakota 52-22 in its quarterfinal. Montana leads the all-time rivalry 74-44-5.

Montana State has won the last two matchups between the teams, most recently winning 31-28 at Montana on Nov. 22. At least one of the teams has appeared in the FCS championship game in three of the past four years. Montana’s last national championship came in 2001, while Montana State’s came in 1984.

Montana is led by head coach Bobby Hauck, who is the second-winningest active FCS head coach and one of the top 10 winningest active coaches overall in Division I football at 151-42. Montana’s key players are quarterback Keali’i Ah Yat, running back Eli Gillman and wide receiver Michael Wortham.

Montana State is led by head coach Brent Vigen. Key players for Montana State include quarterback Justin Lamson, running back Julius Davis and wide receiver Taco Dowler.

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Montana-vs.-Montana State semifinal sequel set for 2 p.m. Saturday on ABC

Published

1 day ago

December 15, 2025

Press Room

Montana-vs.-Montana State semifinal sequel set for 2 p.m. Saturday on ABC

The first playoff meeting between football rivals Montana and Montana State is set for 2 p.m. Mountain time next Saturday at Bobcat Stadium in Bozeman. The game will air nationally on ABC.

The Bobcats and Grizzlies will square off in the semifinal round of the FCS postseason after each team won convincingly in the quarterfinal round. No. 2-seeded Montana State defeated No. 7 Stephen F. Austin 44-28 at home Friday night and No. 3-seeded Montana raced past No. 11 South Dakota 52-22 on Saturday in Missoula.

Next week’s game between the Cats and Griz will be the 125th all-time meeting, and it will be for a berth in the national championship game Jan. 5 at FirstBank Stadium on the campus of Vanderbilt University in Nashville, Tenn.

It will also be the first time the schools have faced each other twice in football in the same season since 1913.

The Bobcats are seeking their fourth all-time trip to the FCS/Division I-AA title game and their third visit in the past five years. MSU claims three national championships — 1956 (NAIA), 1976 (NCAA Division II) and 1984 (I-AA). The Bobcats lost to North Dakota State in the championship game in Frisco, Texas, in both 2021 and last season.

The Grizzlies are looking to make their ninth trip to the championship game and their second in the past three seasons. Montana has won two previous titles — in 1995 and 2001. The Griz suffered title-game losses in 1996, 2000, 2004, 2008, 2009 and 2023.

Montana State beat Montana 31-28 in Missoula on Nov. 22 in the regular-season finale to earn the outright Big Sky Conference title and the No. 2 seed for the playoffs. The Grizzlies lead the all-time series 74-44-5 but MSU owns a 12-10 edge since 2002.

Saturday’s other semifinal game pits unseeded Illinois State against No. 12 seed Villanova. Illinois State went on the road and upset No. 8 seed UC Davis 42-31 in the quarterfinals on Saturday while Villanova held on to beat No. 4 seed Tarleton State 26-21.

Illinois State and Villanova will kick off Saturday at 5:30 p.m. Mountain time on ESPN2.

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