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Property-tax relief overdue

by Inter Lake editorial
| September 30, 2009 11:50 PM

A funny thing happened on the way to property-tax relief - except no one is laughing.

Instead, some property owners, especially in Western Montana, are probably crying when they open their property-tax reappraisals and estimate how much tax they will pay for the next six years.

Sure, we know that property values have increased, but that doesn't mean people who bought property when it was cheap can afford the taxes that the state wants to levy now that areas like Whitefish have become desirable for the rich and famous.

Seems kind of unfair to us that retired folks, or those who inherited a nice piece of lakefront property, are being forced to sell their property and give up their family dreams to rich outsiders just because there is a demand for summer hideaways. Should the state really be in the business of property redistribution that takes away from the poor and gives to the rich?

And let's face it, this isn't a new issue. It's been going on for years. A mitigation formula was worked out six years ago, so that tax increases would be phased in, and a similar arrangement was tried at this year's Legislature.

But it's way too little for the people who have been most affected by the rising price of real estate.

Two years ago, the governor pressed for a $400 rebate for Montana homeowners, and that was a nice gesture, but it wasn't a solution; it was just a way to buy time.

Well now time is up. The 2009 Legislature left the existing "mitigation system" pretty much in place. That means property owners whose property increased in value are paying more in taxes, and those whose property didn't go up in value may be paying less. It isn't fair to communities such as the Flathead Valley which have experienced tremendous growth over the past six years.

So once again, we issue a challenge to the Legislature. Put aside partisan politics. Put aside regional differences. And do what is right for all Montanans.

Don't balance the budget on the backs of homeowners.