Montanans have certainly felt the pinch of property taxes over the last couple of years, not to mention out-of-control inflation.

Recently, at the Montana State Capital, Governor Greg Gianforte and his Property Tax Task Force met to hash out their ideas and findings regarding property taxes in the treasure state.

The task force's goal is to help alleviate the property tax burden on Montana residents.

The property tax task force comprises a diverse and bipartisan group of individuals and was put into place in January.

Montana Tax Task Force Recommendations

The task force recommended the implementation of a homestead exemption for Montana homeowners.

What this means is that a lower tax rate would be offered to primary residences in Montana.

It would also ensure that out-of-state property owners contribute to funding local services, such as schools, law enforcement, and infrastructure.

“A homestead exemption will provide Montana homeowners with long-term relief and ensure out-of-staters – who don’t live here, don’t pay income taxes here, and own second homes here – pay their fair share,” Gov. Gianforte said.

The task force estimates that this homestead exemption could directly reduce property taxes for over 215,000 primary residences and over 32,000 small commercial properties.

They believe it could also lower the rent for more than 130,000 renters across the state.

Understanding Property Taxes in Montana

Property taxes in the Treasure State are primarily a function of counties and local jurisdictions and go to pay for various government services.

About 85% of property tax revenue that comes from residential homeowners goes directly to the local government.

The remainder, roughly 15%, goes to the state of Montana.

This remaining 15% funds local schools and education in the Treasure State.

To learn more about the property tax reform in Montana, visit the website propertytaxreform.mt.gov.

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