Gianforte Touts Legislative Wins as Freedom Caucus Blasts Property Tax Bill

HELENA, Mont. — Governor Greg Gianforte marked two major victories last Wednesday, checking off items from what he called “Montanans’ To-Do List” as the 2025 legislative session nears its end.

Standing next to a poster displaying the administration’s five priorities — Reduce Property Taxes, Limit Spending, Reform the Judiciary, Increase Starting Teacher Pay, and Cut Income Taxes — Gianforte celebrated the passage of bills raising teacher pay and cutting income taxes.

Gianforte highlighted House Bill 337, which reduces Montana’s top income tax rate from 5.9% to 5.4% over two years, raises income thresholds for lower tax brackets, and doubles the state’s Earned Income Tax Credit from 10% to 20%. Under the bill, most middle-income Montanans — including individuals earning up to $65,000 and married couples earning up to $130,000 — will see a lower tax rate beginning in 2026. Gianforte called it the largest income tax cut in state history.

He also praised the STARS Act, which invests $100 million to boost starting salaries for teachers across the state.

Meanwhile, Gianforte has continued promoting his property tax relief plan across the state, holding a press conference last week with small business owners in Kalispell. Highlighting what he calls the “Homestead Rate Cut,” Gianforte said the plan would lower property taxes by 15% for homeowners and 18% for small businesses, directly benefiting more than 215,000 residences and over 32,000 businesses. He emphasized the need to focus tax relief on full-time residents and small business owners facing rising living and operating costs.

However, as Gianforte moves to check off campaign promises, he faces mounting conservative backlash over the centerpiece of his property tax proposal.

House Bill 231, which passed the Senate this week on its third reading and is headed to the governor’s desk, purports to reduce property taxes by creating lower rates for owner-occupied homes and long-term rentals, along with a $400 rebate for 2024 taxes paid. The bill applies only to primary residences and qualifying long-term rental properties, excluding second homes, short-term vacation rentals, and most commercial properties — a limitation critics say creates a two-tier system of winners and losers. The bill spans 43 pages, introducing a new classification system, eligibility standards, application requirements, penalties, and bureaucratic oversight.

The Montana Freedom Caucus sharply criticized HB 231, calling it “the worst property tax bill of the session.” In public comments, the caucus pointed out that the bill could result in a 40% property tax increase on businesses and a 67% increase on second homes, cabins, and similar properties. While stopping short of formally urging a veto, the Freedom Caucus made clear it does not support the bill and warned that it fails to deliver real, broad-based relief.

Criticism also surfaced during Senate debate. One senator warned that HB 231 makes the property tax system more complex and less fair. Another pointed out that the bill charges different rates on the same class of property and hands bureaucrats the authority to determine who qualifies for relief.

Senate President Matt Regier criticized the measure bluntly during floor debate, saying, “There are a lot of options that do provide property tax relief,” Regier said, touching the bill, “This is not it.”

Despite the growing dissent, Gianforte expressed confidence that lawmakers would complete the remaining items on the administration’s to-do list before adjournment. House Bill 231 now awaits the governor’s decision.