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Counties plead with governor to lower property tax collection

House and stack of coin on the wood block with TAX text and white arrow show increase of interest rates. planning savings money of coins to buy a home concept for property ladder, mortgage.
Wipada Wipawin/Getty Images/iStockphoto
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iStockphoto
Property tax graphic.

The Montana Association of Counties is pleading with Gov. Greg Gianforte to lower a property tax the state collects. Counties are preparing revised tax bills following a court defeat last week.

The Montana Supreme Court unanimously ruled that the state has the power to compel counties to collect a property tax that helps fund public schools. Nearly all counties in the state had banded together to collect less than the full tax. They argued they’d reached a cap on how much they could levy after property values soared this year.

Montana Association of Counties president Ross Butcher penned a letter to the governor this week acknowledging the court’s ruling. But, he also asked the state to voluntarily collect less in property tax this year. Butcher said the state still has a budget surplus it could be using to offset the tax.

“The people say to me, 'Why is the state wanting more money? They’ve got plenty.' And, you know, those are the people who are going to vote,” Butcher told MTPR.

Butcher wrote in his letter that the state would still get $20 million more in revenue than last year if it levied the amount the counties are requesting.

Gov. Gianforte’s Press Secretary Kailtin Price said in an email the governor believes schools would be defunded if the state reduced the tax. Price pinned blame on local governments for the bulk of property tax increases.

Butcher said he talked with Gianforte prior to sending the letter, and he believes the governor is listening. But, he added, counties are preparing to send revised tax bills that will make up the difference ordered by the state. Those notices could start hitting mailboxes soon.

Austin graduated from the University of Montana’s journalism program in May 2022. He came to MTPR as an evening newscast intern that summer, and jumped at the chance to join full-time as the station’s morning voice in Fall 2022.

He is best reached by emailing austin.amestoy@umt.edu.
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