Governor Gianforte Launches Property Tax Task Force

Governor Greg Gianforte has launched a property tax task force to provide recommendations to reform the property tax system and reduce the burden on property taxpayers.

“Property taxes are too high. Our $1,350 property tax rebate helped Montana homeowners last year and will help them again this year,” Gov. Gianforte said. “We, however, need thoughtful, deliberate, long-term reforms to keep property taxes as low as possible, because the increasing strain of rising property taxes shouldn’t force Montana homeowners to consider selling the home they’ve owned and lived in for decades.”

“We must protect Montana homeowners from rising property taxes, and I look forward to the work of the Property Tax Task Force to reform our property tax system and arrest the rate of growth of property taxes,” Gov. Gianforte said.

The governor created the task force through an executive order, and charged the task force with providing recommendations the legislature could consider and the governor could sign into law to reform the property tax system and restrain property tax growth.

Gov. Gianforte appointed Ryan Osmundson, director of the Office of Budget and Program Planning, to chair the task force.

“Montanans are rightly concerned with property taxes, which are growing well above the rate of inflation and are increasingly unaffordable for so many homeowners,” Dir. Osmundson said. “We’ll put our nose to the grindstone and leave no stone unturned to identify meaningful reforms to our property tax system.”

State agency leaders, legislators, local officials, association representatives, economists, researchers, and stakeholders make up the task force.

“I’m grateful to each member of the property tax task force for volunteering to dig deep and deliver solutions to reform our property tax system. They’ll each bring a unique perspective to the table, and I look forward to what they’ll accomplish together,” Gov. Gianforte said.

The task force will hold its first meeting in February and will produce a written report with recommendations and strategies by Aug. 15, 2024.

While the task force may recommend any strategy to reform of the property tax system, the governor expressly asked the task force to provide recommendations that

• arrest the rate of growth of property taxes, including assessments and fees, as well as alleviate the impact of drastic increases of property reappraisals;

• increase transparency of property tax bills, make them easier to understand for property taxpayers, and improve customer service in the payment schedules for property taxpayers;

• increase transparency of and public engagement in public budgeting;

• increase public participation for mill levy ballot measures;

• ensure property taxes paid by Montana resident homeowners and on Montana long-term rentals reflect well on supporting homeownership and workforce housing;

• ensure each Montana child has access to a quality education; and

• ensure lower-income Montana homeowners, Montana homeowners who are on a fixed income, and disabled Montana veterans or their surviving spouse are not at risk of losing their home because of property taxes.

Property taxes, which are largely a function of local jurisdictions, fund local government services, with approximately 85 percent of property tax revenue from residential homeowners going directly to local jurisdictions and the remaining 15 percent going to the State of Montana which returns the amount in full to help fund K-12 public schools throughout the State.

The governor’s executive order to create the Property Tax Task Force may be viewed here: https://gov.mt.gov/Documents/GovernorsOffice/executiveorders/View?doc=Executive_Order_1-2024.pdf.