Roughly 250,000 homeowners and small businesses are projected to see a break on rising property taxes under two bills Gov. Greg Gianforte signed.
The final property tax package the state Legislature passed was the result of a complicated session-long debate. Several concepts were molded together into two companion bills.
The plan includes Gianforte’s favored proposal to shift a higher tax burden onto second homes, short-term rentals and large businesses. In turn, that’s supposed to bring taxes down for primary residences and small businesses. It’s known as a “homestead exemption” that’ll be available to property owners who apply for it.
The amount of money taxpayers will save largely depends on the county they live in and its property tax base.
The bill also increases rates on higher value homes, which is similar to a proposal Democrats championed.
Gianforte wanted lawmakers to pass the “homestead exemption” quickly so it could be enacted this year. But lawmakers didn’t meet that deadline. The department of revenue is forecasting residential property values to increase again by about 20% on average. That likely means higher property taxes, but it depends on local government budgeting.
The property tax bills that passed include one-time-only $400 rebates for homeowners this year to offset any increases.
