Montana’s New Property Tax Laws Pick Winners and Losers

Montana property tax statements have been released, and there has been considerable press coverage of the new property tax laws passed earlier this year. Many lawmakers have been patting themselves on the back, and some have been pointing fingers at those who opposed this legislation, trying to disparage their opposition to these new laws. Personally, my property taxes decreased by around $600, and for that, I am thankful; however, I know it comes at a cost to someone else. Additionally, the creation of the Homestead Exemption is a beneficial measure that’s used in many other states and will work out well to decrease taxes on people’s primary homes. With that said, I and 32 other conservative (real) Republicans voted against these new property tax laws on the final vote.

First: Why did we vote against these new laws that the so-called “Republicans” claim have “lowered property taxes for 80% of homeowners”? There are a few key points to understand about what happened to bring us to this point. These same “Republicans” who voted for this bill are also the ones who voted for the substantial 13.5% state budget increase. They did this by increasing overall government spending in a host of other areas and by creating an enormous trust account (Rep. Llew Jones’s “Growth & Opportunity (GO) Trust”) with your surplus tax money. This account creates more government programs in the future, including housing and childcare programs, and funds the state pension program with your surplus tax dollars. This group of “Republicans” spent so much of your money that the governor was forced to veto over $300 million in spending at the end of the legislative session. So, when you see the claim that most people’s property taxes are going down, just know that other people’s property taxes are going up, and the government isn’t spending less money; they’re spending more.

Second: The new property tax laws and bloated state budget passed only because Democrats, joined by a minority of “Republicans” (you might know them as RINOs, Republican in Name Only), conspired to form a majority coalition. If these fake Republican property tax bills were truly conservative, the Democrats would not have supported them.

Third: We, the real Conservative Republicans, opposed these new property tax laws because they contradict conservative principles by allowing the government to pick winners and losers through the tax code. Rather than simply having higher-value homes pay more taxes, these new laws also increase your property tax rate as your home increases in value. This punishes homeowners for success, as those who move up to a bigger house pay a higher percentage in property taxes. For homes under $400,000, the rate is 0.76%, but it rises to 1.9% for homes valued over $1.5 million. This progressive taxation mimics the Democrat party approach of “the rich should pay their fair share,” as echoed by the MT Democratic Party’s Executive Director when he wrote on this issue a few weeks ago.

Another punitive punishment these new laws created is the increased tax on second homes beginning in 2026. If you own a multimillion-dollar estate on Flathead Lake, or a small hunting cabin in the woods, or another house on your ranch, you will be subject to this higher rate, resulting in an expected 68% increase in your property taxes. Again, the government is picking winners and losers in the taxing structure. This was billed by the minority “Republicans” as a way to tax out-of-state homeowners who have bought property in Montana, but the Department of Revenue has reported that just over 70% of second homes are owned by Montana residents. So, who will these new property tax laws negatively impact the most? (Hint: Montanans)

All of the Conservative Republicans who voted against this legislation wanted to solve the property tax issue we are all facing. We knew this tax scheme was not the answer for the reasons stated above, so we stood on our conservative principles and voted NO. We believe in drastically decreasing the size of government across the board. We believe smaller government = fewer taxes needed. We also believe in treating everyone equally and not punishing people who become successful, which is a tactic of the Democrat party.

All of this begs the question: Who is this group of minority “Republicans” joining with the Democrats to pass all this big government legislation? It begins with Representative Llew Jones of Conrad, who authored the new property tax laws, and those who follow his orders. If you are a voter and want to advance conservative policies in our state that lower our taxes and shrink government, it is up to you. Find out if your legislators are supportive of your low taxes and small government beliefs and then vote accordingly. Only then can we have a real Republican majority in Montana that promotes the conservative policies you want.