Top stories from today’s Montana This Morning, Friday, Aug. 16, 2024 – Latest local news and headlines from across the world.

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MT Democrats respond to Gianforte’s tax plan

Montana Democrats respond to Gov. Gianforte’s tax plan

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Property tax task force makes recommendations to governor

Property tax task force makes recommendations to governor

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

“A whopping” 73% of voters say they don’t believe elected leaders are adequately addressing Montana’s housing crisis, according to poll results released Thursday by left-leaning Middle Fork Strategies.

“Montanans are tired of being priced out of their communities and feeling like the politicians that they elected to represent them are instead giving breaks to big corporations and the wealthy at the expense of working families,” said Brandon DeMars, Middle Fork’s executive director, in a news release.

Findings show Montanans are largely concerned about the same issues, the cost of living and cost of housing, along with inflation, property taxes and public education, Middle Fork said.

But compared to other recent surveys, “pessimism about the direction of the state continues to grow,” said a news release about the poll.

Middle Fork describes itself as a “multi-issue advocacy and research organization” with goals to hold those in power accountable and “empower progressive voices.”

The poll was released on the same day a property tax task force convened by Republican Gov. Greg Gianforte delivered its proposal with ideas for property tax relief for the 2025 Montana Legislature to consider.

In a statement Thursday, Gianforte said his office will do its part to address the crisis in housing.

“While we need the federal government to do its part to fix the inflation it’s caused, we’ll do our part to address the affordability crisis,” Gianforte said. “Getting property taxes under control is one part of it. I know the members of this task force share my commitment to addressing rising property taxes and helping more folks achieve the American dream.”

The poll was conducted by Searchlight Research among 600 likely voters from July 28-Aug. 1, Middle Fork said in its news release. It has a +-4% margin of error.

Searchlight Research describes itself as “a full-service public opinion research firm specializing in electing Democrats at all levels and advancing progressive causes.”

The poll asked questions about support for abortion, the housing crisis, and political preferences for the Montana Legislature, among other topics.

Of voters surveyed, 41% said abortion should be legal and generally available; 15% said regulations are necessary, but “it should remain legal in most circumstance.”

Also, 31% said abortion should be legal “only in the most extreme cases, such as to save the life of the woman are in the cases of rape or incest,” the poll said. And 10% said abortion should be illegal.

Middle Fork said the findings on abortion match trends in other research.

“Additionally, an overwhelming majority (83%) favor keeping in vitro fertilization, or IVF, treatment legally available to everyone, underscoring the strong disapproval of proposals to restrict or ban it,” Middle Fork said.

Abortion is legal in Montana because it is protected through privacy in the Montana Constitution and the Montana Supreme Court’s decision in Armstrong vs. State of Montana.

However, a constitutional amendment is slated to be on the ballot this year to protect reproductive rights including abortion.

The poll also found 57% of voters surveyed don’t believe public education is adequately funded. It found 14% strongly agree that it is properly funded.

Generally, the poll also said 57% of voters believe the state is “on the wrong track” compared to 36% who say Montana is going in the right direction — and 52% who said Montana was on the wrong track five months ago.

In 2023, Republicans held a supermajority in the Montana Legislature, and the poll shows most voters still would support a generic Republican for office. It found 50% of voters would support a Republican over a Democrat for the legislature, and 44% would support a Democrat.

Republicans are expected to lose seats in November but retain a majority. Gianforte is also up for re-election but has been far ahead in other polls against Democratic Ryan Busse, according to a couple of surveys posted on 538 including one funded by the Montana GOP.

The Middle Fork poll also showed the following:

• 85 percent oppose cuts to Social Security benefits.
• 74 percent oppose the creation of a sales tax in Montana.
• 73 percent favor reauthorization of the state’s Medicaid expansion program.
• 66 percent oppose legislation allowing tax dollars to be taken away from local public schools and given to private charter schools.