Property tax relief | Opinion

Did you know that California residents now own $9.5 billion of residential property in Montana? They enjoy the ability to vacation here without paying a dime in Montana income tax. They don’t just enjoy the beauty and recreational opportunities that make Montana special, they also benefit from fire protection, road improvements, public safety and emergency services, and other amenities purchased by your hard-earned income taxes. They get all this for free.

According to a Realtor.com assessment, Californians alone own more than 5% of all residential properties in Montana. When you total all the homes owned by residents from other states, they own over 15% of the houses in our state. That’s nearly two houses on every city block. Constitutionally, we can’t simply tax Californians more than we tax Montanans. But we can differentiate between primary homes and secondary homes, many of which are owned by wealthy out-of-staters as vacation homes or rental properties.

Members of the legislative Freedom Caucus want to mislead Montanans into thinking that tax relief from bills like House Bill 231 and Senate Bill 542 are really just a tax “shift” from one group to another. But they’re trying to protect their own interests and the interests of wealthy out-of-staters who own second homes in Montana, not hardworking Montana families who live, work, raise their families, and pay income taxes here.

Don’t believe the line that the real, permanent property tax relief the Legislature passed this session was just a shift. HB 231 and SB 542 significantly lower taxes on primary residences and long-term rentals, the structures that Montana families call home, while raising property taxes on all second homes. Our rebalance ensures seasonal and out-of-state property owners contribute fairly while giving you much-needed property tax relief on your home.

These bills also help control local tax growth and protect Montana’s farmers and ranchers by creating an “agstead” exemption for ranch and farm homes. No one should ever be taxed out of their primary residence. That’s why we’re proud to offer 230,000 primary homeowners, 130,000 long-term renters, and 40,000 small Montana businesses the tax relief they need.

The real tax shift was proposed by the Freedom Caucus. They wanted you to have a paltry $230 rebate (compared to $400 actually coming to you this year) straight from the general fund while letting out-of-staters off the hook. Using general fund dollars to offset your property taxes doesn’t solve anything — that’s truly just a tax shift.

Our goal is that when you receive your 2026 tax bill, you’ll feel real relief from the $270-million spike in residential property taxes we saw over the last few years. HB 231 and SB 542 will accomplish that goal. Don’t let anyone tell you otherwise.