The Montana Department of Revenue says roughly 80% of residential property taxpayers are seeing an average $500 reduction on their bills this year. The remainder of homeowners saw their taxes stay flat or increase. Rebates of up to $400 were also available to all primary households.
About 70% of Montana businesses are seeing reduced taxes this year, while about 30% saw an increase.
Department data show that moderately priced homes are seeing the greatest tax reductions. That’s by design. State policymakers last spring created a tiered property tax system with higher rates for higher-value homes. Gov. Greg Gianforte says the data proves the new policy is a win for Montanans.
But some lawmakers are worried about homeowners they call "land rich and cash poor." Property values in some communities have skyrocketed in recent years. But that doesn’t mean homeowners' incomes increase.
Republican Sen. Greg Hertz of Polson says he’s been hearing from constituents who bought their houses decades ago, retired and are living on fixed incomes.
“These individuals don’t want to be forced to sell their homes.”
Hertz says the new system is going to require some more tinkering. It’s not yet fully enacted.
Phase two comes next year when the state adopts a “homestead exemption” for primary Montana property owners. That will further shift the tax burden from primary residences to second homes, short-term rentals and large businesses. Agriculture land will also see a modest increase.
