Property tax relief bill gets warm welcome in Montana House

A property tax bill that faced an onslaught of fierce opposition at its first hearing saw nothing but support Thursday in the House Taxation committee — after passing unanimously out of the Senate.

“It’s getting kind of popular,” said Sen. Carl Glimm, R-Kila, bill sponsor.

Property taxes are a significant priority for this Montana Legislature because residential values have increased in the state, and property tax bills have followed suit.

Senate Bill 90 would allow property taxpayers to apply for a credit on their bill, currently estimated at $240 a year. The money would come from lodging and car rental tax revenue, which goes into the general fund.

Thursday, however, Glimm said the goal is to bump up the credit to $500 or so, possibly with other legislation.

In support of the bill, Bob Story, with the Montana Taxpayers Association, said more increases are projected in the coming reappraisal cycle, an estimated 20% on average for residential properties across the state, and called SB 90 “a great tool.”

Representatives from the Montana Chamber of Commerce, cities of Bozeman and Missoula, and the Montana Economic Developers Association were among those who spoke in support of the bill Thursday.

Proponents said they appreciated the simplicity of the bill and its acknowledgement of the costs of tourism on local infrastructure.

Dan Brooks, with the Billings Chamber of Commerce, said his organization had done an “about face” on the bill, and several former opponents thanked Glimm for listening to their concerns.

The bill drew opposition early on because it stripped money from Department of Commerce programs, including ones focused on tourism, culture, agriculture and history. Now, the credit comes from the general fund.

Members of the committee asked questions to ensure the process for property taxpayers wouldn’t be too cumbersome, such as if multiple bills pass that require homeowners fill out an application to receive the credit.

A spokesperson for the Department of Revenue said if similar bills pass, he anticipated the application forms could be consolidated.

He also said property taxpayers don’t have to apply for SB 90 every year; the bill spells out the criteria that would require renewal, such as if a property is no longer used as a primary residence.

The committee didn’t take immediate action on the bill Thursday.

However, Glimm said he has received feedback that counties that have high value growth, such as Gallatin, Flathead and Missoula counties, also want more of their residents to qualify.

In response, he said he plans to present an amendment to increase the limit on properties that receive the credit to those worth up to $2 million.

That way, he said, as values increase, the limit doesn’t need to be adjusted right away.

Generally, Glimm said, the bill is addressing a problem Montanans have talked about for probably decades.

“It’s a hot topic,” Glimm said.

Keila Szpaller is deputy editor of the Daily Montanan, a nonprofit newsroom.