Montana Governor Demands Action on Property Tax Relief

Missoula, MT (KGVO-AM News) - The Montana legislature is rocketing toward an end on May 5, but the number one topic on the minds of Montanans for the past year is still meaningful and permanent property tax relief.

At his weekly press conference on Thursday, Governor Greg Gianforte directly addressed the importance of property tax relief.

Governor Gianforte Held his Weekly Press Conference

“They (the public) said they wanted us to work together to first reduce property taxes,” began Gianforte. "Secondly, to limit spending. Third, to cut income taxes. Fourth, reform the judiciary, and finally, increase starting teacher pay.”

Gianforte again noted the importance of property tax relief for all Montanans.

“However, the top priority on the list must remain, property taxes,” he said. “Montanans spoke loud and clear in the last election that property taxes are too high. Most people in this building, myself included, agree Montanans deserve permanent, meaningful relief and tax property tax reform.”

He Again Pushed HB 231 His Homestead Rate Cut Bill

He said the Homestead rate cut must advance to his desk.

“Our homestead rate cut was a thoughtfully developed solution and a result of a diverse, bipartisan effort,” he said. “It cuts property taxes for primary homeowners and small businesses, and provides indirect relief for renters. I still think the homestead rate cut is the best proposal in front of the legislature.”

The Governor yet again emphasized the importance of getting property tax relief across the finish line before the legislature adjourns.

“I am optimistic that they understand that addressing property taxes is at the top of our combined ‘to do’ list,” he said. “But as I said a few weeks ago, we can't leave here without meaningful, permanent property tax reform. It's time to get it done, and we should."

HB 231 Passed a Senate Committee

KGVO has learned that HB 231, the homestead bill, did indeed pass the Senate committee on Thursday morning, according to spokesman Kyle Schmauch.

Another property tax bill, SB 90 was one vote short on the House floor of getting ‘blasted out’ of committee (with 54 votes in favor), and according to a legislative spokesman, ‘might still have life left in it with that close of a vote’.

According to Schmauch, long-term property tax reform that will reduce future tax increases is headed to Gianforte’s desk after Senate Bill 117 cleared its final vote in the legislature yesterday.

SB 117 Cleared Its Final Vote

Sponsored by Sen. Daniel Zolnikov, R-Billings, SB 117 ensures that property taxes collected on new development are used to offset taxes paid by existing homeowners and businesses.

“Montana is growing, especially in our larger cities where property taxes are the highest, and those new developments bring in a lot of new property tax revenue,” Zolnikov said. “SB 117 addresses runaway property tax increases by making sure money from all that new development is used to reduce property taxes for existing homeowners.”

SB 117 passed both chambers of the legislature with overwhelming Republican support. It was based on Zolnikov’s SB 511, which narrowly failed in the 2023 legislative session.

“We’ve got plenty more work to do on property taxes before we wrap up the session, but SB 117 is an important structural reform that will help contain property tax increases heading into the future, and we got it across the finish line,” Zolnikov said. “This is a long-term solution to a long-term problem of endless government growth.”