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Montana Property Tax Task Force delivers recommendations to Gianforte • Daily Montanan

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Montana Property Tax Task Force delivers recommendations to Gianforte • Daily Montanan


Montana Gov. Greg Gianforte told the Property Tax Task Force he convened in January they had performed “a job well done,” praising pieces of the finalized 12-part proposal the task force submitted on Thursday which he said would be “innovative tools” the legislature can start with next session to try to cut down the increased tax burden for homeowners.

The 23-member task force has spent the past seven months discussing and crafting options for bills to shift property tax increases back away from single-home families following the legislature’s failure in 2023 to reduce the residential tax rate from 1.35% to 0.94%, as was recommended by the Department of Revenue in order to keep residential tax income neutral after appraisals largely rose statewide.

“Montanans are really counting on us. This report that you completed will help inform and guide all of us as we head into this next legislative session … to get the job done,” Gianforte told the task force members. “I look forward to working with all of the legislators to implement many of these ideas the task force has recommended, working together.”

Gov. Greg Gianforte addresses the Property Tax Task Force at its final meeting on Aug. 15, 2024. (Photo by Blair Miller, Daily Montanan)

While the task force’s recommendations will carry weight in the Capitol come next January’s session should Gianforte win re-election and Republicans keep hold of both chambers, they will compete with proposals already outlined by legislative Democrats, and Gianforte’s Democratic opponent also unveiled an initial property tax strategy of his own Thursday in the event he wins the governor’s race.

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A poll of Montanans released Thursday by Middle Fork Strategies found property taxes, the cost of living and housing were among the biggest issues they wanted the governor and legislature to focus on next year and of greatest concern to them.

The Daily Montanan detailed the full package of task force proposals earlier this month based on the task force’s final report, and the report released Thursday contains few changes.

The centerpiece of proposed legislation is a homestead, “agstead,” and “comstead” exemption that the task force says would cut taxes by at least 15% for about 345,000 homeowners and those who own long-term rentals, as well as for about 32,000 business owners. “Agstead” refers to agricultural land and “comstead” to commercial property.

The homestead exemptions would cut the tax rate for primary residences and long-term rentals worth up to a little more than $1 million to 1.1% instead of the current 1.35%, while homes worth more than that, as well as short-term rentals and second or subsequent homes would see a tax rate of 1.9%.

Commercial properties up to six times the median value, about $2 million, would get a 1.5% tax rate under the proposals, while properties worth more than that would pay 2.1%, but even properties worth $10 million would see a minimal estimated tax increase.

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“The Bill Gates, the Tom Bradys, the Justin Timberlakes, there’s a list of those that are here. We’re glad they’re here, but they don’t participate in the provision of income tax, but they benefit from those services,” Rep. Llew Jones, R-Conrad, said in an interview. “So, this model at least brings them to the table to help them pay.”

The homestead exemption in particular curried Gianforte’s favor.

“For my part, I firmly believe that we should move ahead with a homestead exemption to give a preference to Montana residents on a primary home. That’ll provide good, long-term relief,” Gianforte said. “It will also ensure that out-of-staters that don’t live here, don’t pay income taxes here, and own second homes here pay their fair share – not only for our schools, but law enforcement, roads and bridges, emergency response – and I’m glad that the task force included that as one of the recommendations.”

He added that the additional proposals from the task force’s other two subcommittees, focused on education and local government, had laid out “other tools that we have in our box.”

Rep. David Bedey, R-Hamilton, outlined the education subcommittee’s proposal to move school district-based levies to a countywide levy, which he said would narrow the range of mills levied across the state’s districts and reduce levied mills in 7-of-10 districts in Montana.

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Gov. Greg Gianforte listens to Office of Budget and Program Planning Director Ryan Osmundson introduce the work of the Governor's Property Tax Task Force on Aug. 15, 2024. (Photo by Blair Miller, Daily Montanan)
Gov. Greg Gianforte listens to Office of Budget and Program Planning Director Ryan Osmundson introduce the work of the Governor’s Property Tax Task Force on Aug. 15, 2024. (Photo by Blair Miller, Daily Montanan)

Sen. Greg Hertz, R-Polson, discussed the local government subcommittee’s proposal to change mill levy ballot language to use dollar amounts instead of mills, so the amount of money raised by levies does not change as property values increase.

“This will basically allow them to focus on how much money they need for a project; it will allow them to continue to grow over inflation, but it won’t allow for a big windfall. And it will keep property taxes more stable for voters and taxpayers across the state,” Hertz said.

He said in an interview after the meeting that he believes the task force’s homestead exemption is a better version of the one proposed by Democrats, that he believes some proposals to sunset mill levies and put a higher approval threshold in place on voted levies will still allow taxpayers to “make the right choices,” and that there will be plenty of back-and-forth between competing interests when the bills come to the floor early next year.

“Unfortunately, there’s always a lot more lobbyists up here in Helena when the session’s going on than there are local taxpayers. So, we always get down to what’s the best decision. But I would really encourage local taxpayers to get involved in the legislative session,” Hertz said.

Gianforte said the report was full of “innovative ideas” and that he was “sure we will implement them.” He praised the task force and also mentioned that the second round of homeowner rebates is now available for people to apply.

“I’m sure this work of the task force has delivered concrete and specific strategies to address rising property taxes; I want to thank everybody for the work,” Gianforte said. “This is really a job well done. Each member has demonstrated they are committed to arresting the growth of property taxes, and particularly for Montanans and their primary residence.”

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Busse wants to cut residential rate from 1.35% to 0.94%

Gianforte’s Democratic opponent in November, Ryan Busse, unveiled what he called an initial step for his plan to tackle property tax increases and housing affordability issues about two hours later.

That initial plan is simply to lower the residential tax assessment rate to 0.94% across the board, as was recommended by the Department of Revenue in late 2022, which lawmakers led by a Republican supermajority then failed to do.

“The previous four governors of Montana have faced similar situations and have reacted, I think, very responsibly and have undertaken the basic tenets of our tax plan, which is reduce the tax rate so that homeowners are not slammed with increased tax rates or tax bills, and that large industry is not given, in effect, a big tax break,” Busse said in a digital news conference alongside running mate Raph Graybill and former Gov. Brian Schweitzer.

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Democratic former Montana Gov. Brian Schweitzer discusses the Busse-Graybill plan to cut the residential property tax rate in a digital news conference on Aug. 15, 2024. (Screenshot via Zoom meeting)
Democratic former Montana Gov. Brian Schweitzer discusses the Busse-Graybill plan to cut the residential property tax rate in a digital news conference on Aug. 15, 2024. (Screenshot via Zoom meeting)

Schweitzer said he believed the Gianforte administration and Republican legislature did not lower the tax rate on purpose so it could collect another $200+ million while providing tax breaks to large corporations with the budget surplus. And while he said there were some “decent ideas” coming out of the task force, lowering the tax rate was the easiest and quickest fix that could have been accomplished without ever convening one.

Asked what else he and Graybill were working on to address Montana’s housing affordability crisis, the two said they were working on proposals but did not have a specific list ready because they wanted to focus on the task force’s announcement.

“So, I think we are open in the long term to conversations about fourth-home billionaires like Gianforte paying their fair share. I think we’re open to conversations about homestead exemption and other ways to make the tax burden more fair on people who live in Montana and call it home,” Graybill said. “But the first thing we have to do is fix that initial decision that his new plan still doesn’t do.”

Legislative Democrats also proposed in July a $230 million package of property tax proposals that include a homestead-comstead exemption that would apply to lower and middle-valued homes and businesses; a tiered tax rate that would favor lower-valued properties; and a housing fairness tax credit that could extend to renters, which they say would put more of the tax burden onto wealthier homeowners and large businesses and provide more relief for average Montanans in the long term.

“Our plan lowers costs for Montana’s workers, families, and retirees so that they have the freedom to stay in their own homes,” Senate Minority Leader Pat Flowers, of Belgrade, and Rep. Jonathan Karlen, of Missoula, said in a statement Thursday. “Someone living in a middle-class home shouldn’t be paying the same tax rate as someone who lives in a mansion.”

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Broadband access is expanding in Montana, but rural areas still lag behind

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Broadband access is expanding in Montana, but rural areas still lag behind


In the southeastern Montana town of Belfry, 65-year-old resident Mary Boyer reflects on her relationship with technology.

“I’m a green-ledger girl,” Boyer said. “I can handwrite. I don’t like calculators. I never owned a television, I have a crank Victrola for music.”

Boyer’s home is about an hour south of Billings. The Beartooth and Pryor Mountains flank Belfry, as the Clarks Fork of the Yellowstone River meanders through it.

Belfry, MT is flanked by the Beartooth and Pryor Mountains. This terrain is challenging and expensive when it comes to installing fiber optic cable, which in some parts of the state can cost up to $300,000 to reach one home or business, according to ConnectMT Director Misty Ann Giles.

She said technology has always been slow to come to their town.

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“We had a heck of a time getting songs – because we have to do it over the internet – for the karaoke machine,” she said. “And all of a sudden halfway through a song there’s no words or there’s no karaoke whatsoever.”

Boyer knows connectivity goes beyond a karaoke machine.

Before this year, she said their internet service couldn’t meet the community’s needs. Her neighbors rely on it for telehealth appointments, education and commerce.

“I think it’s all about the community and keeping them in touch with the outside world,” she said.

Montana ranks among the lowest in the country when it comes to internet access. And rural places disproportionately lack access to high speed connectivity compared to urban.

Montana ranks among the lowest in the country when it comes to internet access. Broadband Now, an independent research organization, ranked Montana second to last in the nation for internet speeds and affordability. And rural places disproportionately lack access to high speed connectivity compared to urban; this is known as the digital divide.

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State officials and telecommunications companies have been trying to change that. Over the last few years, just shy of a billion dollars in federal funding aimed at tackling this issue came into the state. The goal is to use it to close the digital divide for good.

In the southern end of Belfry, Jay Velez stands in front of his restaurant, the Silvertip, admiring the scenery.

“What a view, man!” he said, looking toward the Beartooth Mountains. “It doesn’t suck here.”

His restaurant serves as a local watering hole. It offers the karaoke night coveted by Boyer. And this summer, the Silvertip’s internet got better.

The Silvertip Restaurant in Belfry, MT. The restaurant’s internet speeds got an upgrade after Nemont Communications finished building fiber optic lines to the town. That work was funded through a federal program aimed at closing the digital divide.
The Silvertip Restaurant in Belfry, MT. The restaurant’s internet speeds got an upgrade after Nemont Communications finished building fiber optic lines to the town. That work was funded through a federal program aimed at closing the digital divide.

“We just rely on it for our point of sale systems, and so far, it’s been working great,” he said.

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His improved internet is due to newly installed fixed fiber optic lines. These are thick cables laid in the ground. They’re considered the “gold standard” for broadband connectivity.

But this technology is expensive to install, and it’s been slow to reach towns like Belfry.

“We’re way behind, in looking at the grander sphere of the problem,” said Misty Ann Giles, the head of the state’s broadband office ConnectMT. “We are farther behind our sister states. Montana does have a lot of challenges when it comes to thinking about internet access.”

Government-led efforts to close the digital divide have been underway for decades. The federal government established the Universal Service Fund in 1996, prescribing that “all Americans” should have access to basic connectivity. The fund subsidizes fiber installation and maintenance in remote areas.

But it wasn’t enough. So, another project emerged in 2018. The U.S. Department of Agriculture’s ReConnect program offers federal funds and loans to expand internet access.

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Giles helped stand-up the program as former Chief of Staff at the agency’s Rural Development office.

“A lot of the work we did when we were at USDA when we first came into office was trying to look at the bigger Rubik’s Cube of, why are rural communities lacking some core services when it comes to education, telehealth, things like that in their communities,” Giles said. “And what it all came down to was connectivity.”

This connectivity became even more imperative during the pandemic. Business, community, health care and education all required a stable internet.

Belfry is flanked by the Beartooth and Pryor Mountains. This terrain is challenging and expensive when it comes to installing fiber optic cable, which in some parts of the state can cost up to $300,000 to reach one home or business, according to ConnectMT Director Misty Ann Giles.
Belfry is flanked by the Beartooth and Pryor Mountains. This terrain is challenging and expensive when it comes to installing fiber optic cable, which in some parts of the state can cost up to $300,000 to reach one home or business, according to ConnectMT Director Misty Ann Giles.

According to the Federal Communications Commission, broadband expansion timelines considered reasonable pre-COVID-19 became “unworkable,” and the Commission pushed to get rural communities connected faster. So the federal government launched several new programs.

Since 2019, around $900 million from four federal programs for rural broadband expansion has flowed into the state.

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Since 2019, around $900 million from four federal programs for rural broadband expansion has flowed into the state.

The main sources include funds from the ReConnect Program, which go to telecom companies through grants and loans. Those total around $144 million for Montana-focused projects. Then there’s the American Rescue Plan Act, which provided $310 million; The Broadband Equity Access and Development program, which allotted around $308 million; Lastly, there’s the FCC’s Rural Digital Opportunity Fund, which provided Montana $126 million for a 10-year period during its Phase I auction.

And it’s through these programs that Belfry’s internet just got a little better.

Back in southeastern Montana, Nemont Communications Chief Operating Officer Scott Paul drives through the 250-resident town on a sunny October afternoon.

“You probably didn’t see it, but look for an orange capped plastic pole,” he said, pointing out markers of their recent efforts. “Beneath that orange-capped plastic pole, there is gonna be a handhole. And then between those plastic poles, there’s fiber that’s buried underground.”

White poles with orange caps mark places Nemont Communications recently installed fiber optic to bring better internet speeds to Belfry, MT. The work was funded in part by the USDA’s ReConnect program, which funds broadband buildout in rural areas.
White poles with orange caps mark places Nemont Communications recently installed fiber optic to bring better internet speeds to Belfry, MT. The work was funded in part by the USDA’s ReConnect program, which funds broadband buildout in rural areas.

Nemont just replaced Belfry’s copper wire laid around the 1970s. Paul said copper was great for dial-up internet, but fails at providing the internet speeds we expect today. But installing fiber in Montana is expensive. It can cost up to $300,000 to reach a single home or business, according to Giles.

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“If you’re trying to put all of this fiber into an area that’s all rock, then it becomes a lot more expensive because rock’s a lot harder to get through than the dirt,” he said.

For Belfry’s project, Nemont received $10 million ReConnect dollars to build fiber for around 1,000 households in 500 square miles. That’s an area the size of Los Angeles. Paul said they installed 80 miles of fiber just to reach Belfry.

Most companies rely on their customer base to cover the costs of installing internet infrastructure. But in low population states like Montana, that model does not always work. Paul said that’s why these funds are so important.

“It’s allowing us to escalate the speed of doing that,” he said. “We’re doing a little bit more now than we have done in the past, for that reason.”

Dozens of companies like Nemont have leveraged these federal programs to try and reach more residents. Sometimes the costs still exceed what they can afford, and they default.

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According to the FCC, Montana’s broadband coverage increased 10 percent between 2023 and 2024. But there’s more work to be done. 70,000 homes and businesses across Montana still need better internet.

Some progress has been made. According to the FCC, Montana’s broadband coverage increased 10 percent between 2023 and 2024. But there’s more work to be done. 70,000 homes and businesses across Montana still need better internet.

And rural residents like Mary Boyer know how necessary it is to be connected.

“If we didn’t have the access to the good communications, we could be in a world of horse pucky,” she said.

State officials hope to bridge the digital divide by the end of the decade.

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Humane Society of Western Montana has many pets for adoption

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Humane Society of Western Montana has many pets for adoption


Humane Society of Western Montana’s Director of Marketing Katie Hofschield dropped by NBC Montana Today with special guest Lady Bird.

Lady Bird is a 9-year-old mixed breed who is available for adoption. Lady Bird is house and crate trained and in general is a very laid back dog who loves cheese.

The Humane Society of Western Montana currently has many animals looking for homes, including several older pets, cats, plus two guinea pigs and a rabbit.

The Humane Society of Western Montana runs an annual pet food pantry, but this year they’re expanding into a larger-scale pet food relief project due to holiday and financial pressures on families.

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Through a partnership with Greater Good Charities and the Montana Food Bank Network, they received 25 pallets (almost 20,000 pounds) of pet food, which will be stored in a former food bank facility and distributed across the state, including to tribal partners.

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Former Montana Heritage Commission director sentenced in embezzlement scheme

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Former Montana Heritage Commission director sentenced in embezzlement scheme


Former Montana Heritage Commission Executive Director Michael Elijah Allen was sentenced Thursday to 10-years in the Montana State Prison with seven years suspended for stealing public funds from the state agency charged with preserving some of Montana’s most significant historic sites.

Lewis and Clark County District Court Judge Kathy Seeley said she took no pleasure in imposing the sentence but told Allen he was the brains behind this operation of years of theft and fraud. On a count of theft by embezzlement as part of a common scheme, Seeley sentenced Allen to 10 years at the Montana State Prison with seven years suspended, and imposed a concurrent, fully suspended 14-year term on a felony money laundering count.

“You have destroyed yourself,” Seeley said. “You understand that. I hope you do. This is not anybody but you that did this.”

Allen was ordered to pay $280,000 in restitution to the Montana Heritage Commission, plus a 10% administrative fee, and a series of standard court costs and fees, including a presentence investigation fee and victim-witness surcharge. He received credit for eight days previously served in custody, from Dec. 27, 2024, through Jan. 3, 2025, and was barred from having contact with the Department of Commerce or related entities as he serves his sentence under conditions laid out in a plea agreement.

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Prosecutors urged a stiffer punishment, asking the court to impose a 20-year prison sentence with 10 years suspended, arguing that Allen’s years-long scheme was a serious breach of public trust that demanded a lengthy custodial term. Deputy County Attorney Kevin Downs told the court that every defendant in similar embezzlement and financial-crimes cases submitted for comparison had received multi-year prison time and said a 10-year effective prison term was warranted to deter others from stealing public funds.

“He was the one that made this happen. He greased the wheels to steal from people,” Downs said. “This sentence sends a message to people. The people that work in any state agency, god forbid, that if you steal there will be significant consequence.”

Allen’s attorney asked Seeley for a lengthy but largely suspended sentence, arguing that a shorter period of incarceration — about two years, roughly double that imposed on co-defendant Casey Jack Steinke — would still hold Allen accountable while allowing him to work and pay restitution more quickly. The defense said Allen has suffered enough with the public humiliation and collateral consequences, including the loss of his career, voting rights and ability to serve on a jury or possess firearms.

Brenda Elias, chief legal counsel for the Montana Department of Commerce, told the court Allen had been a long-time state employee with significant autonomy as the Heritage Commission’s director and had been compensated for his work. She said Allen abused trust, manipulating people and resources.

“Hundreds of thousands of dollars that should have gone to preserve Montana’s heritage were diverted to Mr. Allen’s personal use,” Elias said.

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Elias said Allen served as executive director from 2012 to 2024 and said the Heritage Commission has never been financially self-sufficient, relying heavily on bed tax revenue and other support from the Department of Commerce.

“The Heritage Commission continues to realize the impact of these crimes to this day, and it will take many years for the Commission to recover,” Elias said.

Detective Nathan Casey of the Helena Police Department, a veteran investigator in financial crimes, testified that he was contacted by Commerce employees in mid-2024 after they uncovered significant irregularities, prompting a wide-ranging probe. Casey said investigators ultimately reviewed roughly 744 pages of documents which included invoices, contracts and procurement justifications tied to a state-issued purchasing card controlled by Allen.

According to earlier court records, Allen used his position as head of the Heritage Commission to channel roughly $350,000 in commission funds to Steinke between 2020 and 2024, often through invoices for work that was not legitimately performed. In addition to those payments, investigators found evidence that Allen used public money to cover rent, educational expenses and other personal costs, and that Steinke lived rent-free in Reeder’s Alley, one of the commission’s historic properties, during the scheme.

Steinke, who was charged with accountability for theft by embezzlement and felony money laundering, previously pleaded guilty to one embezzlement-related charge and the money laundering count under a plea deal that called for prosecutors to recommend a 20-year prison sentence with 15 years suspended. As part of that agreement, Steinke agreed to pay $100,000 in restitution, including a $20,000 upfront payment at sentencing.

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The embezzlement case comes as the Heritage Commission, which manages historic properties, is facing financial pressure. According to reporting from the Daily Montanan, the Commission is obligated to provide $1.1 million annually to the state but has only generated an average of about $750,000 in recent years, leaving less available for capital improvements than needed to maintain historic buildings.

Allen, 49, told the court he accepted full responsibility for his actions, saying he was ashamed and that the crimes were an aberration from how he had otherwise lived his life. He described the embarrassment his children have faced as his case played out publicly, and said he hopes to work and resume making restitution payments.

“I apologize to my friends and to my community,” Allen said. “I’m incredibly ashamed of the actions.”



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