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Just one week after the 2024 Election, and as at least one race in Montana still hasn’t been decided, supporters of a constitutional amendment to cap property taxes have submitted paperwork to the Secretary of State’s office to begin the process for getting it on the 2026 ballot.
Bozeman attorney and former Montana lawmaker Matthew Monforton is bringing a new proposal that is similar but not identical to one that he ran in 2022 modeled after a California initiative that capped property taxes.
This constitutional initiative proposes to cap residential property tax increases to no more than 2% of the fair-market value of the house per year. This would apply only to single-family residences used as primary residences, and would not include vacation or rental properties.
Monforton told the Daily Montanan on Wednesday that the group which supports the measure is starting early because they anticipate legal challenges to the proposal, which means there could be a lot of time spent in court before gathering the required number of signatures.
Monforton terms it “incoming lawfare,” because he says that many, including the Republican-led Legislature, won’t support the bill because it allows the state to collect more property tax from residents without increasing taxes outright. He explained that as the fair-market value increases on a home, it naturally means the property owners will pay more, even if the tax rate remains constant. This measure takes aim squarely at that “hidden” mechanism that increases the amount Montanans pay for property taxes.
“The GOP legislators are not going to vote or go on record for higher tax rates,” Monforton said.
Monforton said that unlike previous measures which targeted both the property tax rate and the fair-market valuation of a house, this one abides the Montana Supreme Court’s strict interpretation that an amendment must be single-subject. The new measure would simply cap the fair-market value at an increase of no more than 2% per year until the property owner resells the house, at which point it would be assessed at the full-market value. The legislature would still determine the overall tax rate, he said.
The proposed constitutional amendment would also allow property to pass to children, spouses or parents without penalty, so long as it continues to be a primary residence.
However, the measure would also have an effect on those who remodel, upgrade or add-on to their current house. The proposed measure would allow the state to reset the fair-market value after renovations or upgrades are made to a house. Vacation or rental homes would also remain subject to fair-market valuation, Monforton said, making sure to protect Montana residents who stay in their homes, but have to compete for housing in markets that have been roiled by out-of-state in-migration and inflation.
The former Republican lawmaker noted that the Legislature has promised property tax relief in the upcoming 2025 Legislature, and this measure would guarantee it. He also said that Gov. Greg Gianforte’s “housing task force” recommendations were “gimmicks” that didn’t address the core problem of property taxes in Montana.
He said that the group of supporters is starting early because they understand there could be challenges along the way, but that Montanans will have to take property tax relief into their own hands.
“We know we’ll get the signatures we’ll need, and we know Montanans will support it,” Monforton said. “They’ll also try to slow us down because they’ll know we’ll succeed. We want to get this before voters sooner rather than later. Montanans are more upset with property taxes than ever.”
2026 Property Tax Initiative (1)