Gov. Greg Gianforte listens to Office of Budget and Program Planning Director Ryan Osmundson introduce the work of the Governor’s Property Tax Task Force on Aug. 15, 2024. (Photo by Blair Miller, Daily Montanan)
During the last 36 years, the Montana Department of Revenue has helped the governors prepare a balanced budget before the Legislature arrives. Montana’s Govs. Marc Racicot, Judy Martz, Brian Schweitzer and Steve Bullock knew that the Montana Constitution requires a balanced budget. The budget cannot spend more money than comes in from taxes and other sources.
In each of those years, the governor was given the most recent property appraisals to help calculate the property taxes that would be collected to balance the budget. In almost all of those years, the value of properties (including houses) had increased — sometimes by a little, sometimes by a lot.
Governors — Republican and Democrat — were formerly advised by Revenue Department experts that unless the property tax rate was adjusted downward by the Governor and Legislature, property taxes (residential taxes are 60 percent of the total) would increase. For 36 years, those governors listened to the recommendation and they adjusted — cut — the rate so homeowners would NOT get tax increases.
I know about these things, because as your governor for eight years, I did not raise one tax or fee on anything… property, income, booze,… nothing!
Gov. Greg Gianforte was advised by his Revenue Department in November 2022 that the rate for the coming two years would have to be cut from 1.35% to 0.94% to ensure that homeowners would not see huge tax increases. He chose, and the Legislature agreed, not to adjust the rate, and homeowners have had their taxes increase at the fastest rate in history. This new taxation increased revenue collected by the Montana state budget by more than $500 million during two years. Taxes increased for most homes in Montana.
Montana has never had more elected Republicans than we do today. Republicans control all the branches of government. These tax increases were placed on your shoulders without the help or consent of any Democrat. The Montana Republican Party is now the party of higher taxes and more government spending.
Housing costs will continue to increase across Montana because of the tax hike. Rents will increase for renters because property owners will pass the tax increases along to tenants.
Because of COVID concerns about a downturn in the economy, the Trump and Biden administrations poured money into all 50 state budgets. When Gianforte prepared the state budget, he had the largest budget surplus — $2.6 billion — in history. All 50 states also had historic surpluses.
So who got the money?
No funding increases for education or healthcare. No help for working families, state employees or main street businesses.
Montana’s largest two property tax payers are NorthWestern Energy and BNSF Railroad . They each got millions of dollars in tax cuts. Northwestern sent the loot to corporate headquarters in South Dakota and then raised your electric rates. BNSF sent the stash to Fort Worth, Texas, and increased freight rates to ship Montana’s wheat crop to Portland. Refineries, pipelines, transmission lines and mines all got big tax breaks and did not invest more in Montana or hire more Montana workers. They just sent your money to their shareholders.
The governor and Republican legislators first claimed that they did not raise taxes, then falsely claimed that counties raised your property taxes. County Commissioners (most are Republicans) were disgusted by that accusation and unsuccessfully sued the governor to try to cut your taxes, reminding the Helena crowd that state law only allows counties to increase spending by half the annual inflation rate (around 2%).
The embarrassed governor finally convened a “property tax task force.” The task force consisted of the governor’s staff, pals, legislators and lobbyists He even appointed some out of state “experts.” They prepared a 30-page document with all kinds of ideas, but still did not recommend the simple solution of cutting the tax rate from 1.35% to 0.94%. So, your home’s taxes are still increasing.
The 30-page document (smoke and mirrors) was prepared by the same governor’s staff, legislators and lobbyists that concocted and voted for your tax increases during the 2023 legislative session. Thirty pages of recommendations yet not a single vote was cast.
I guess they all agreed before they sat down that your taxes should go up and that out-of-state corporations get to keep your money.
Brian Schweitzer is a third generation Montana farmer, husband, father, grandfather and served as Montana’s Governor from 2005 to 2013.