Governor Greg Gianforte and his Democratic challenger Thursday released competing proposals for property tax reform.
Property taxes last year spiked by 20% or more for many Montana homeowners. That set off a political scramble, as officials raced to draw up plans for reforming the system.
The proposals released Thursday would both ease the tax burden on most homeowners– but in different ways.
A task force formed by Governor Gianforte finalized a dozen recommendations for lawmakers to consider. The centerpiece being a “homestead exemption”. That would lower the property tax rate for Montana residents and small businesses while raising the rate on second homes owned by out-of-staters and large commercial properties.
Gianforte says he “firmly believes” the exemption will provide long-term tax relief to Montana residents.
“It will also ensure that out-of-staters– who don’t live here, don’t pay income taxes here, and own second homes here– pay their fair share,” said Gianforte.
Ryan Busse, the Democrat running to unseat Gianforte, unveiled a rival proposal: a blanket reduction of property tax rates for all residential properties.
Busse says he’s open to some of the task force recommendations. But says his plan offers a simpler, more immediate solution.
“I think it’s very important we start with this basic level of simplicity before we add any of this discussed complexity of the Governor’s Task Force tax plan,” said Busse.
Another plan, released last month by Democrats in the state legislature, calls for a sliding tax rate based on home value.
Lawmakers will decide which recommendations to adopt during the 2025 Legislature which convenes in January.