Montana
There is a way for Montana residential property taxes to go down
The upcoming property tax year could be a little easier on homeowners and renters than last year.
The operative word in that sentence is could. Here’s why this year could be easier, not a slam-dunk “will be easier.”
Three policy-generated numbers mathematically merge in a complex equation to determine what you pay in property taxes: 1) the state’s assessed value of your property; 2) the state’s tax rate applied to your property; and 3) every city and county’s total ask in taxes for the year (for the sake of simplicity, schools won’t be part of this particular explanation).
Cities and counties determine the size of the property tax pie (No. 3); state policy determines the size of your slice (Nos. 1 and 2). State law already caps how much cities and counties can increase the size of the pie, with a few exceptions falling outside of that cap, including voted bonds and levies and new properties that have come online in the last year.
2024 is not a reappraisal year, so the value of your home will not go up, for tax purposes. The Legislature also won’t meet this year, so the residential property rate will remain at 1.35%. So, for many jurisdictions across the state, if there are no voted bonds or levies, residential property taxes should only increase by the statutorily mandated one-half of the 3-year average of inflation. That should be the case, but it won’t be. Given that the tax pie is finite, if one piece gets smaller, another must get bigger.
There are 16 classifications of property, each with a different appraisal method and tax rate. The centrally assessed tax classification (telecoms, railroads, pipelines, airlines and NorthWestern Energy) appeal their valuations every year, regardless of where we are in the re-appraisal cycle. This process is underway, and they had until June 20 to submit their protests. These industries have deployed fleets of attorneys to Helena to contest their valuations. These negotiations happen behind closed doors and are always successful in reducing values for these industries.
This dramatically affects residential property taxpayers. When corporations in these industries successfully argue for a reduction in their value, they reduce the taxes they pay and increase yours. When the national telecoms, railroads, airlines, pipelines and NorthWestern Energy get a tax break in Montana, the size of their piece of the property tax pie gets smaller. That means someone else’s piece necessarily gets bigger – yours. When these corporations’ property taxes go down, yours go up. Residential taxpayers cover the costs of tax breaks for the centrally assessed industries. Even if cities’ and counties’ total tax levies remain the same this year, the state granting a reduction in value for centrally assessed property will make residential property taxes go up.
But it doesn’t have to be this way.
If the centrally assessed industries were to acknowledge the massive property tax gut punch for homeowners and renters in 2023 and just sit out this round of appeals, that could really help your 2024 property taxes. For many of these national corporations, Montana is a tiny piece of their market. These reductions won’t matter much for them, but the property tax increases for Montanans sure will.
National telecoms, railroads, pipelines, airlines and NorthWestern Energy should just say no when it comes to appealing their respective valuations. The Montana employees and customers who need to afford to live here deserve your consideration more than your shareholders.
That’s not the only way to avoid this situation, though. If the Department of Revenue, at the direction of the governor, didn’t cave during these negotiations but instead stood tall for homeowners and renters and didn’t reduce these valuations, that could keep your property taxes down.
The state’s Property Tax Task Force is meeting now. Productive property tax conversations are happening in interim legislative committees and across the state. But 2025 is a long way off in terms of relief. Things could be better this year. National telecoms, railroads, airlines, pipelines and NorthWestern Energy should not appeal their valuations. And if they do, the Department of Revenue should make the negotiations public.
That actually would help.
Missoula County Commissioners Dave Strohmaier, Juanita Vero and Josh Slotnick.
Montana
University of Montana president job draws high interest • Daily Montanan
The search for a new University of Montana president has drawn more than 60 applicants, according to a spokesperson for the Office of the Commissioner of Higher Education.
“We do not have an exact count at this time, as several applications are still being completed and additional submissions are expected,” said spokesperson and Deputy Commissioner Galen Hollenbaugh in an email earlier this week.
In January, then-UM-President Seth Bodnar announced his resignation to pursue other public service. Wednesday, the final day of filing, he announced he was running as an independent for the U.S. Senate to try to unseat Republican incumbent Steve Daines.
Commissioner of Higher Education Clayton Christian earlier said that with the advice of AGB Search, a firm that’s helped the Montana University System conduct other executive searches, he would undertake an expedited process to appoint a new president.
Christian has been providing brief updates on a website dedicated to the search. Last week, he said he and AGB Search are reviewing applications, and the pool of candidates was “strong and diverse.”
The commissioner also announced he was convening a small working group to assist in the search, members who “represent a variety of perspectives to assist in vetting and narrowing this field of exceptional candidates.”
In an email this week, Hollenbaugh identified the members of the working group who are assisting Christian with application review as:
- Community member and former Regent Joyce Dombrouski
- Faculty Senate Chairperson Valerie Moody
- Staff Senate President Dominic Beccari
- Administration Representative John DeBoer (Vice President of Academic Affairs)
- ASUM (Associated Students of the University of Montana) President Buddy Wilson
Hollenbaugh declined to comment on the way the rest of the process would unfold or the role the working group members would play.
Christian earlier said he anticipated an appointment within one to three months, or as soon as early this month.
Montana
Montana Supreme Court allows ballot measure on initiative process to move forward
HELENA — The Montana Supreme Court has ruled in favor of a proposed ballot measure intended to simplify the process for introducing ballot measures in the future.
Justices ruled 5-2 that the measure, currently called Ballot Issue #8, did not violate state requirements that a single constitutional amendment can’t make multiple separate changes to the Montana Constitution.
“We’re very grateful to the Montana Supreme Court for agreeing with us that the attorney general’s finding of legal insufficiency for Ballot Issue #8 was incorrect,” said SK Rossi, a spokesperson for Montanans Decide, the group sponsoring the measure.
Montanans Decide argues the Montana Legislature has passed laws making it harder for the public to propose and pass ballot issues. The Montana Constitution already guarantees the people the right to pass laws and amendments through ballot measures, but Ballot Issue #8 would expand that to include a right to “impartial, predictable, transparent, and expeditious processes” for proposing those measures. It would seek to prevent “interference from the government or the use of government resources to support or oppose the ballot issue.”
Attorney General Austin Knudsen’s office argued the measure “implicitly amended” multiple provisions in the state constitution, including by limiting the “power and authority of public officials to speak officially on ballot issues that affect those officials’ public duties” and by putting restrictions on judges and on the Legislature. Montanans Decide, the group sponsoring Ballot Issue #8, disagreed – and the majority of justices sided with them.
“Its provisions operate together to define and protect a single constitutional right—the people’s exercise of initiative and referendum,” wrote Justice Katherine Bidegaray in the majority opinion. “They are closely related components of one constitutional design.”
Bidegaray’s majority opinion was joined by Justices Jim Shea, Laurie McKinnon, Beth Baker and Ingrid Gustafson.
Chief Justice Cory Swanson and Justice Jim Rice each wrote dissenting opinions, saying they would have upheld Knudsen’s decision to disallow Ballot Issue #8. Rice said the language restricting government interference with a ballot issue was not closely related and should have been a separate vote. Swanson agreed with Rice and said the measure’s attempt to fix a timeline for legal cases surrounding ballot measures was also a separate substantial change.
In a statement, Chase Scheuer, a spokesperson for Knudsen’s office, reacted to the decision.
“This decision only further muddies the courts’ jurisprudence on ballot issue questions,” he said. “This initiative would violate the separate vote requirement by amending multiple parts of the Montana Constitution, but the court contradicted its prior rulings. Attorney General Knudsen will continue to neutrally apply the separate vote requirement in his review of ballot initiatives.”
The court’s decision means that Knudsen’s office will now need to approve ballot language for Ballot Issue #8. Once that language is finalized, Montanans Decide could begin gathering signatures to qualify the measure for the November ballot.
However, last year, sponsors of another initiative went to the Supreme Court to argue that the ballot statements Knudsen prepared were misleading. If Montanans Decide object to their ballot statements, that could further delay signature gathering while the case plays out in court.
“Regardless, we’re going to push as hard as we can to get those petitions into the hands of voters and let them sign and support if they so choose,” said Rossi.
Rossi said the legal battle this measure has gone through – and the possibility of more to come – shows why Ballot Issue #8 is needed.
“The state Legislature, and also statewide elected officials, have taken every opportunity to create burdens and hurdles and rigamarole for campaigns to get through in order to just get to the signature gathering phase, and then to get through the signature gathering phase onto the ballot, and then get through the election phase,” said Rossi. “The reason we filed this initiative is just to make sure that the process is simple, that the timeline is clear, and that Montanans can have their will heard when they want to propose and pass laws that they deem worthy.”
Montana
Christi Jacobsen enters race for Western House seat
HELENA, Mont. — Montana Secretary of State Christi Jacobsen is running for Montana’s Western Congressional District seat, entering the race a day after U.S. Rep. Ryan Zinke announced he would not seek reelection.
Jacobsen’s announcement sets up a new contest for the open seat after Zinke, a Republican, said he would seek reelection.
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“As your Secretary of State, I’ve stood up to Washington overreach, defended election integrity, and delivered real results for Montanans. In 2020, voters gave me a mandate to clean up our elections, grow Montana business, and push back against radical liberal special interests. I delivered. Now it’s time to take that same results-driven, America First leadership to Congress.”
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