Montana
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.”
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.
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.
“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.
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.”
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.
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.”
PropertyTaxTaskForce_FINALREPORT_OF_THE_GOVERNORS_PROPERTY_TAX_TASK_FORCE
Montana
Montana State doctoral student awarded national research service grant for gut microbiome, arsenic research
MISSOULA — Four out of five members of Montana’s Public Service Commission were in a federal courtroom in Missoula Thursday morning, as the PSC’s former president challenges the disciplinary action taken against him earlier this year. Now, newly released documents are shedding more light on to what led up to this point.
(Watch the video for a closer look at the case.)
New documents shed light Montana PSC dispute
Commissioner Brad Molnar has sued President Jeff Welborn, Vice President Jennifer Fielder and Commissioner Annie Bukacek – the three PSC members who voted in May to require him to work remotely, after an investigation into complaints about his workplace conduct. Molnar has claimed he is being unfairly punished for constitutionally protected speech, and he asked Senior U.S District Judge Donald Molloy to allow him to return to the PSC offices.
Matthew Monforton, Molnar’s attorney, told the judge that barring Molnar from the building was limiting his ability to do his job.
“He has not been officially kicked out of office, but his voice has clearly been diminished,” said Monforton.
But Natasha Jones, an attorney representing the other three commissioners, said the findings were about behavior, not just speech, and that the PSC’s action was a reasonable response.
“These are serious concerns about a pattern of conduct that has made employees quit,” she said.
Jonathon Ambarian
On Tuesday, Molloy ordered the release of redacted versions of two full investigative reports into Molnar’s conduct – more than 100 pages of documents. Monforton had moved for the full reports to be made public, and Molloy ruled attorneys for the other PSC members hadn’t shown a compelling reason to keep the documents under seal as long as the names of people involved in the investigation were obscured.
While the names remained redacted in the investigation reports, the attorneys for Welborn, Fielder and Bukacek also filed additional documents – including a public declaration from Bukacek and from former PSC executive director Alana Lake, providing information about their allegations against Molnar.
The two reports, from an outside investigator, cover Molnar’s alleged actions over two periods: the first from February to August 2025, and the second from August to October 2025. The investigation began after the first formal complaint, filed by Bukacek in May 2025 – though the reports say employees had been bringing up concerns about Molnar’s behavior informally for several months prior.
Bukacek’s complaint claimed Molnar had repeatedly made what she called “sexualized and demeaning comments.” The examples she cited included saying the PSC should replace “Taco Tuesdays” with “Topless Tuesdays,” reminiscing about watching girls in bikinis as a teenager, and commenting about the beauty of women in areas of China who didn’t get “old and wrinkly.”
In her declaration, Bukacek also claimed Molnar had “maliciously disseminated false information” about her and “engaged in behavior that was dismissive, derisive and otherwise abusive.”
“My primary concern now is not for my safety nor my feelings, but for the rest of the staff who may not have the temperament to speak up or may feel too intimidated to speak up given concerns over job security,” Bukacek said in her declaration.
MTN News
The investigators determined Molnar had violated the PSC’s code of conduct by making comments of a sexual nature, and that it appeared his behavior had continued for some time after he was warned about it. They also found he had behaved unprofessionally and in a belittling manner toward Bukacek, though they said Bukacek herself had at times used “language that could be considered inappropriate” in emails to staff or other commissioners. Bukacek told MTN she “readily self corrected” any behaviors that were brought to her attention.
The investigation also found a violation in connection with a complaint from a PSC staff member, who said he “felt bullied” by Molnar when the commissioner sent an email complaining about his team not being “people with competence.”
However, much of the first report and the entire second report was focused on conduct after the initial complaints, when Molnar was accused of retaliating against people who participated in the investigation. Lake said in her declaration that she saw “an immediate and significant change in his behavior toward staff involved in the process.” She claimed he said he would use an attorney and private investigator to go after people who filed complaints, and she accused him of publicly criticizing her in interviews and removing her job responsibilities because of her handling of the investigation.
Lake said Molnar’s actions led to “declining morale within the agency,” undermined staff members’ ability to do their jobs and damaged her reputation. She said that led her to resign as executive director.
“I believe no employee should be forced to choose between reporting misconduct and protecting their career, reputation, or personal well-being,” she said in her declaration.
Lake has since become Helena city manager.
Jonathon Ambarian
The report said there was evidence to show Molnar had retaliated, including by “making disparaging statements about investigation participants” including Lake, by sending an email warning he could file complaints of his own against people involved, and by taking other actions investigators said could dissuade employees from reporting behavior in the future.
Monforton said during Thursday’s hearing that the initial comments Bukacek complained about were jokes Molnar had admitted were inappropriate, that he regretted saying them, and that he hasn’t made any similar comments in about a year. But he argued the vast majority of the findings against Molnar were about retaliation – and that those were primarily based on speech that the other commissioners don’t have the right to interfere with.
Monforton said it’s unreasonable to punish Molnar for what he said in the July news conference where he announced he was under investigation, in interviews with the media or in commission meetings. He said Molnar’s conduct doesn’t rise to the level of actual retaliation.
“This is an elected official, engaging in speech in his forum,” Monforton said.
He said Molnar may have made harsh comments toward staff, but that he had the right to raise objections about the way the agency does business.
Jonathon Ambarian
Monforton also argued the retaliation claims no longer justify keeping Molnar out of the office, since Welborn, Fielder and Bukacek voted to remove him as president in October and he no longer has the authority he’s accused of misusing. He said there haven’t been further complaints about his behavior since that time.
“We’re not asking for the moon and stars, we’re asking for the status quo as it existed for the last seven months,” he said.
Jones said there is enough evidence to show Molnar would have been punished regardless of whether any protected speech was excluded.
“This is not about a couple of jokes,” she said.
Jones said Molnar made maliciously false statements about people like Lake, and that type of statement isn’t covered by free speech protections.
She also said Molnar’s exclusion from the PSC offices is temporary, and that the PSC will reconsider whether to let him return if he apologizes for his actions, accepts the agency’s code of conduct and undergoes training.
Molloy indicated he saw indications that there was “acrimony” on both sides of the situation, and said he was skeptical it would be resolved easily.
“It would be nice if instead of juvenile behavior, there was professional behavior,” he said.
However, the judge said there was an avenue for Molnar to pursue if he wanted to reach a resolution.
Molloy took no immediate action Thursday. He told the parties he would rule as quickly as he could.
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