Governor touts proposal to reduce property taxes for more than 215,000 Montana homeowners, encourages homeowners to claim property tax rebates today.

HELENA, MT – Governor Greg Gianforte on Aug 15th, joined members of his Property Tax Task Force for a meeting at the State Capitol. At the meeting, the governor received their recommendations to reform the property tax system and reduce the burden of property taxes on Montanans, and he encouraged Montana homeowners to secure their property tax rebates today, the first day to claim rebates.

Members of the diverse, bipartisan Property Tax Task Force, which the governor launched in January, produced their proposals and provided the governor with their report.

“Montanans work hard every day to realize the American dream, but with inflation soaring across our country in the last few years, they’re struggling to make ends meet,” Gov. Gianforte said. “While we need the federal government to do its part to fix the inflation it’s caused, we’ll do our part to address the affordability crisis. Getting property taxes under control is one part of it. I know the members of this task force share my commitment to addressing rising property taxes and helping more folks achieve the American dream. I’m grateful to them for volunteering their time and their hard work.”

Property taxes, which are largely a function of counties and other local jurisdictions, fund local government services, with approximately 85% of property tax revenue from residential homeowners going directly to local government. The remaining 15% goes to the State of Montana which returns the amount in full to local schools to ensure each Montana child has access to a quality education.

In hearing from members of the Task Force about its top recommendations, Gov. Gianforte expressed his support for a homestead exemption for Montana homeowners.

“A homestead exemption will provide Montana homeowners with long-term relief and ensure out-of-staters – who don’t live here, don’t pay income taxes here, and own second homes here – pay their fair share to fund our schools, law enforcement, and roads and bridges,” Gov. Gianforte said.

The homestead exemption provides a lower tax rate for Montana homeowners for their primary residences. According to estimates in the Task Force’s report, the homestead exemption could “directly reduce property taxes for over 215,000 primary residences and over 32,000 small commercial properties and could also indirectly reduce taxes and rents for over 130,000 renters in the state.”

While praising the innovative, thoughtful solutions from the Task Force, Gov. Gianforte also noted that Montanans can begin claiming their property tax rebates today. To reduce the burden of property taxes for Montanans, the governor in 2023 provided up to $1,350 in property tax rebates for Montana homeowners over 2023 and 2024.

“Property taxes are too high, which is why we prioritized property tax relief for Montanans in the 2023 legislative session,” Gov. Gianforte said. “That’s why we secured the largest property tax rebate in Montana’s history. I encourage Montanans to claim their rebate today.”

The governor encouraged eligible Montana homeowners to secure their rebate at getmyrebate.mt.gov.

The Montana Department of Revenue will process property tax rebate claims as they are received and distribute rebates by December 31, 2024.

Between the historic rebates and long-term property tax reform that will save Montanans $120 million, the average Montana homeowner will receive property tax relief that more than offsets his or her property tax increase, according to the nonpartisan Legislative Fiscal Division.

In 2023, Gov. Gianforte also boosted property tax relief for Montanans with low or fixed incomes, as well as disabled veterans or their unmarried surviving spouses. To further reduce the burden of property taxes, the governor reformed the property tax system to allow homeowners to pay their property taxes in seven equal payments throughout the year, rather than just in November and May.

The Property Tax Task Force’s recommendations may be viewed here. Information on the task force may be found at propertytaxreform.mt.gov.