Missoula, MT (KGVO-AM News) – We have two different views on property tax legislation passed by the Montana Legislature.
The first is from a Republican point of view, State Senator Greg Hertz.
The Montana Legislature has officially adjourned, and the postmortem has already begun on the matter of property tax relief that literally went down to the last minute.
I spoke with Republican State Senator Greg Hertz just after a press conference following sine die (adjournment). Hertz said there will be some temporary relief after property tax legislation was passed on Wednesday.
State Senator Greg Hertz said There will be Temporary Property Tax Relief
“We did finally pass House Bill 231, and it works in conjunction with Senate Bill 542,” began Hertz. “I did not support either one of those. I don’t believe what we’ve done with property taxes is a fix. It’s merely a shift from having one taxpayer pay more to provide relief to another taxpayer.”
The key word from Hertz about the bills that passed on Wednesday was ‘temporary’ relief, and that local citizens must impress on their local leaders to rein in spending, as well.
“What you’ll see in 2025 for a primary property owner is a rate reduction, and it might be reflective in a 15 percent to maybe up to 30 percent property tax relief initially in 2025, but hold on to your hat,” he said. “Turn around in 2026 a lot of that will disappear. Of course, that will depend on what local voters do. Are they going to vote for more (local) levies? Are local governments going to raise their budgets?”
Hertz said the property taxes for those who own second homes could potentially double in 2026.
Hertz said 2026 will Bring Higher Property Taxes to Second Home Owners
“Second homeowners are going to get a real surprise,” he said. “In 2026 they’ll see anywhere from a 50 percent to a 100 percent increase, and large businesses across the state will also see a significant property tax increase, such as utility companies like Northwestern Energy, which will just turn around and add that to your utility bill.”
Hertz once again asked Montanans to get their local governments to rein in spending.
“I just like to remind taxpayers that the state can’t control or provide direct relief,” he said. “What you really need to do is look at who you’re electing to your local governments, your school boards, and what type of mill levies that you are supporting in your own taxing jurisdiction and raising your own property taxes. That’s where property taxes go to fund local issues. They don’t end up with the state portion. We collect that. The state turns right around and sends it back to the schools in Montana.”
I also spoke on Wednesday afternoon with Missoula State Representative Mark Thane of House District 89, who told a different story about property tax relief, one much more optimistic than that told by State Senator Hertz.
Thane provided a much different take on property tax bills, starting with House Bill 231.
“I was the sponsor on behalf of the Democratic Party of House Bill 155, and Lou Jones carried the bill that came from the governor’s task force, which was House Bill 231, and we presented both in the house taxation (committee),” began Thane. “Both moved to the floor, both passed through the floor, went to the Senate, and both ultimately passed from Senate Taxation Committee to the Senate floor, and then, of course, the sausage making occurred.”
Representative Mark Thane had a More Positive View of Tax Reform Legislation
Thane praised the work on both sides of the aisle to get property tax bills across the finish line.
“What we have essentially as a final resolution is Senate Bill 542,” he said. “Senate Bill 542 is an amalgamation of the two different bills, and I would just say that this was largely a collaborative effort. We had some great work across the aisle, primarily in the house, to craft a solution that I think works well for Montanans.”
Thane provided some specific numbers on how the two bills will benefit Montana homeowners.
Thane Described a ‘Significant Reduction’ in the Property Tax Rate
“In year one we see primarily reflected that which was in HB 155, which stated that the first $400,000 of an individual’s assessed value of their primary residence is taxed at 0.76 percent, and that’s compared with a current tax rate of 1.35 percent, so it’s a significant reduction in the tax rate.”
Thane continued to heap praise on the new property tax legislation.
“I think people will be very pleased to see again, in year one, a significant reduction on their property tax bill and a $400 rebate on top of that,” he said. “I think in year two, if you’re an individual that owns a second home, part of the rate reduction that will be experienced by those Montanans that have a single home for primary residence is funded by the higher tax rates that you’ll find on second homes, but the vast majority of Montana will see significant property tax relief for their residential properties.”
My thanks go to Senator Hertz and Representative Thane for taking the time to speak with me even though the legislative session has ended.
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