The debate over property tax relief in Montana is shaping up to be a complex and politically charged issue. Republican Gov. Greg Gianforte’s proposal to reduce property taxes for homeowners and landlords by increasing taxes on second homes and Airbnb rentals has garnered support, but not without significant amendments aimed at securing bipartisan backing.
These amendments, including a provision that ties the final form of Gianforte’s bill to a Democratic proposal for an income tax credit, suggest an effort to find common ground across party lines, even if the coordination clause risks undermining the bill’s prospects.
While Gianforte’s bill would adjust tax rates on primary residences and long-term rentals, aiming to provide relief to homeowners, the two Democratic proposals offer alternative methods for addressing the issue.
One focuses on providing income tax credits to offset property taxes for low- and middle-income households, while the other proposes a progressive rate structure similar to that of income taxes.
The push for property tax relief is part of a broader conversation about balancing the needs of homeowners and renters with the concerns of business and agricultural groups.
With residential property accounting for a significant portion of Montana’s property tax base, the outcome of this debate will have far-reaching implications, particularly for the state’s business and farming sectors.
The coming votes on these bills will likely be crucial in determining how Montana addresses the issue of property tax relief and what compromises will be necessary to get a bill across the finish line.