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Montana homeowners and renters are bracing themselves for the largest property tax increase in the state’s history. Former head of the Montana Department of Revenue, Dan Bucks, believes that this increase is intentional. He estimates that residents will collectively pay nearly 0 million more in property taxes, while large corporations, including telecommunications companies, received a tax break of approximately 7 million.

According to Bucks, the tax breaks for these entities are only growing, and he believes that the system is rigged and in need of constitutional intervention. Speaking at a City Club Missoula presentation called “Treasure State Taxes: Shedding Light on Montana’s Tax System,” Bucks highlighted the disparity between the burden placed on individual taxpayers compared to large corporations.

The recent property tax appraisals have shown record increases for many Montanans, with some experiencing hikes of up to 40%. Bucks explained that while homeowners and renters face these increases, their tax dollars will effectively fund tax breaks for corporations and industrial taxpayers.

Bucks acknowledged the temporary property tax rebate for residences but argued that without further action, the burden will shift permanently onto residential property taxpayers. He highlighted the disparity in the treatment of different property classes, with commercial taxpayers being protected at around 60%.

During the event, participants raised questions about the legislature’s decision not to help residential property taxpayers, despite being forewarned of the potential impact on them. Senator Greg Hertz, chairperson of the Senate Taxation Committee, explained that the tax rate has not changed since 2015. He also argued that changing the tax rate would not necessarily benefit residential property taxpayers as their tax amounts are influenced by local government and schools.

Hertz defended the current tax system, stating that it allows for transparency. He pointed out that if businesses were taxed more, they would pass on the costs to consumers. Hertz also emphasized that the state works to equalize revenue across counties, ensuring fairness.

Montana primarily relies on two types of taxes, income and property taxes. Hertz noted that introducing a sales tax would require a citizens’ initiative and the support of the governor.

In addition to Bucks and Hertz, Missoula County Commissioner Josh Slotnick expressed concerns about attempts to undermine the work of local government. He emphasized that local government budgets are not solely funded by property taxes but also by competitive grants. Slotnick argued that measuring government budgets is not a true representation of taxation.

Despite the debates surrounding taxes, Slotnick stressed the importance of local government and the services it provides. He highlighted the infrastructure and resources that enable a safe and functional society.

Overall, homeowners and renters in Montana are facing significant property tax increases, while large corporations enjoy tax breaks. The debate over the tax system continues, with differing opinions on how to achieve fairness and equity in taxation.

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