Tax relief for working, retired Montanans

Putting Montanans first and prioritizing the well-being of working families and retirees should be the goal of Montana’s government. With property taxes skyrocketing across the state, citizens have seen their livelihoods threatened. Government should serve its citizens and they are looking to the legislature to fix this problem on day one by adopting a tax program that is fair to everyone. 

Let’s be clear. This crisis is entirely of Governor Gianforte’s and the Republican Legislature’s making. Despite repeated warnings about the property tax disaster facing Montana families they did nothing. In fact, Republicans even voted down Democratic legislation in 2023 that would have provided relief for homeowners and renters. 

Worse, they deepened the problem by giving tax breaks to major corporations. As a result, the rest of us, including our Main Street businesses, have seen our property taxes go up while those of large corporations went down. It takes a lot of fiscal irresponsibility for Republicans to start with a $2 billion budget surplus and end up with a massive tax hike on Montana families.  

We hear and share voters’ frustration. Montanans not multi-millionaires are our priority. That’s why Democrats support legislation to reverse this extreme tax hike on Montanans and build a fairer system to prevent it from happening again. Montana’s government always should put everyday Montanans and Main Street business before big corporations. 

Our plan will restore fairness and put money back in people’s pockets; providing long-term tax relief by cutting property taxes for low- and middle-income Montanans while protecting working folks and retirees from future property tax hikes. Equally important, we will ensure that the ultra-wealthy and major corporations pay their fair share. 

Citizens want us to solve problems not create them, and we will work with anyone to fix this tax mess. Our goal is to put the focus on where it should be — helping  Montana families and small businesses. Any final plan must provide meaningful, immediate, and lasting tax relief for the great majority of Montanans across the state in communities large and small. 

Potential tools to accomplish this goal include a homestead exemption for primary homes of Montana residents as well as relief for small businesses. This would immediately lower taxes for homeowners, renters, and Main Street. 

We also should make the tax system fairer. Currently every residence — whether it’s worth $100,000 or $2 million — is taxed at the same rate. Creating a new, tiered residential property tax rate would cut taxes for low- and middle-income Montanans while making sure the owners of high value mansions pay their reasonable share. 

Lastly, we need to help ensure Montanans aren’t priced out of their homes and some type of Housing Fairness Tax Credit for working families and retired Montanans would provide a tax credit to offset property tax costs that exceed an affordable portion of their income. 

Montanans need real tax relief to help provide stability for seniors, renters, and working families. Our government should always put Montanans first and citizens deserve a government that is fair, works for them, and gives them an opportunity to get ahead in life. 

Sen. Pat Flowers, D-Belgrade, is the Montana Senate Democratic Leader. Rep. Katie Sullivan, D-Missoula, is the Montana House Democratic Leader.