Holds roundtable in Billings to discuss property taxes

BILLINGS, MT – Governor Greg Gianforte on Feb 25th, held a roundtable discussion to hear from Yellowstone County residents on the impact of meaningful property tax relief for Montana homeowners through the Homestead Rate Cut.

“I share Montanans’ concern and agree that property taxes are too high and need to be reined in,” Gov. Gianforte said. “Working with the legislature, I’m optimistic we can secure meaningful, long-term property tax relief for homeowners.”

As proposed in his Path to Security and Prosperity, the governor supports the Homestead Rate Cut which is projected to lower property taxes for Montana homeowners by 15% and small businesses by 18%.

The recommendation is a result of the governor’s diverse, bipartisan Property Tax Task Force and, according to estimates, will directly reduce property taxes for more than 215,000 primary residences, more than 32,000 small businesses, and provide indirect relief for over 130,000 renters.

Meeting with homeowners, including veterans, the governor heard of the significant impact rising property taxes.

“We’ve worked very hard, we paid off our primary residence and it’s been kind of disheartening to have it paid off, feel like that mortgage is gone and be so excited, and then looking at the insurance and taxes each month, it's still a legitimate bill. It's one of our highest expenses each month,” Yellowstone County homeowner, business owner, and veteran Jacque Lorang said.

Lorang continued, talking about the impact of the Homestead Rate Cut, “In our business, taxes are the ones that are taking away from our profit. We work very hard, collecting investment properties, trying to get the cash flow to the point where it pays off. So, to be able to get to a point where our profits outpace increases in costs, it would be wonderful.”

Another Yellowstone County homeowner and veteran, Sal Armenia, added, “Just putting money back in people's pockets is ultimately what everybody could use and benefit from — to take families on vacations or to be able to put money away into a savings or investments.”

Speaking as a landlord for long-term rental properties, Lorang added, “I’m really excited to hear this benefit would help small business, because the reality is we try our best to take good care of our tenants, we set our prices, but when taxes and insurance go up, we have no choice have to pass it on. It’s a business, it doesn't work out if you don't. So, we've had to start increasing rents more often based on taxes and insurance.”

Lorang concluded, “So I am glad to hear it, and I think that that would encourage more investment among Montanans instead of bringing it outside of investors, if we know we get a 15% advantage over the outside investor.”

When asked about the difference between the impact of short-term property tax relief through rebates versus long term reform through the Homestead Rate Cut, Yellowstone County homeowner and retired veteran Dave Redmon said, “For me, it’s the ability to plan and look to the future with some kind of certainty. The governor is right, a rebate is just a one-time fix — maybe you can spend it on new tires for your truck or short-term expenses but it’s not part of your long-term planning. Whereas this Homestead Rate Cut allows you to plan long-term where you can predict what your cash flow will look like after taking account for property taxes.”

Dan Stetler, a Montana homeowner, and retired veteran shared, “I know I bought my primary residence that I'm in now in 2014, and my property tax was about $4,000 then and now I'm looking at over $6,000. So, it's a significant increase. I think [this proposal] is a great start, 15% allows gives me some additional income to go and hopefully spend in the community.”

Stetler concluded, “I think this is a great start. We haven't seen anything on property taxes in at least 10 years, I think. So, thank you, Governor.”

Earlier this month, the Homestead Rate Cut, House Bill 231, passed its second reading on the House floor with broad bipartisan support. Last week, the bill passed out of the House Appropriations Committee.

In addition to his proposals for property tax relief, Gov. Gianforte reiterated his priorities to deliver the largest income tax cut in state history and lower the rate most Montanans pay from 5.9% to 4.9%. The governor’s income tax cut proposal also boosts the earned income tax credit to benefit lower- and middle-income Montanans.