The Beauty of Montana
Often considered one of America’s most scenic states, Montana is known for its majestic national parks such as Yellowstone, glaciers, lakes, and adamant nature. During the 19th and 20th centuries, cattle ranches and mines flourished throughout the state.
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Western Montana has been largely gentrified in recent years due to an economic boom. Unfortunately, this has resulted in a massive housing shortage in the state as wealthier people continue to buy property and drive up home prices. Property taxes are also surging in the state, causing outrage amongst locals.
Montana Relies on Property Tax
Montana is unique in that the vast majority of its tax revenue is sourced from property taxes. So, anytime the state needs to raise additional funds, the only way to do so is to increase the property tax.
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Around 97% of Montana’s local tax revenue is sourced from property taxes, and just under 10% of the state government’s tax revenue is also sourced from property taxes. Compared to other state governments, which typically average about 1.7%, it’s clear the Treasure State’s government heavily depends on property taxes.
New Residents Have Increased Property Tax
Montana has experienced an influx of new residents in recent years, which, according to various experts, could be another reason why property tax continues to surge.
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Regardless of the reasoning, state officials have voiced concern over the drastic increase in property tax, and some Democratic leaders have even tried to counter by introducing a bill. Yet so far, they’ve been unsuccessful.
Homeowner Claims Increase is Unreasonable
Numerous homeowners in the state have criticized the state and its Republican governor, Greg Gianforte, for the surge in property tax.
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“When I initially bought my home, I thought it was reasonable,” said Kevin Whitehead, a resident of Billings, “But 40%, that number jumps out as extremely high. And that makes my spidey senses kind of tingle.”
800% Increase For Some Residents
According to figures, some Montana residents have seen their annual property tax bill increase by a staggering 800%.
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One man has revealed his annual tax bill surged from $895 to $8,000 in over a year, leaving many to suggest that the state of Montana is inching close to a crisis should the property tax continue to climb.
Rich Residents Pay Millions in Tax
The state of Montana currently receives around $1.09 billion in revenue from residential taxes each year. The vast majority of this revenue comes from Madison County, a luxurious region where over 100 of the most expensive homes in the Treasure State are located.
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Officials have suggested a 20% reduction of property tax in the state, which would result in a loss of around $200 million in annual revenue. However, the tax relief would likely benefit those who own expensive homes, meaning lower-income residents wouldn’t see much of a change.
How is Property Tax Calculated in the State?
Several factors determine how much property tax a Montana resident will pay, including the value of the land. This can increase if there are structures on the land, such as homes, garages, barns, driveways, and sidewalks.
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Montana property taxes are paid twice annually, in May and November. Should you fail to pay the bill, residents are giving up to three years to pay their tax, which may include penalties or interest.
Residents Plead With State to Lower Taxes
Montana residents who are struggling to keep up with the ever-increasing property taxes have turned to special media to plead with the state to lower the tax.
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One man shared his experience on TikTok, claiming he struggles to pay his bills even though he receives social security and works a full-time job, simply because of the rising property taxes.
Montana Homeowners Call For Moratorium
Homeowners in Montana have even begun asking for a moratorium to ease the burden of paying their exorbitant property tax bill.
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A moratorium is a temporary exclusion from paying any tax until certain issues are resolved. Issues may include but are not subject to financial hardship or the need to reorganize finances due to recent unforeseen events.
Homeowners Turn to Selling Homes
The situation has become so extreme in Montana that many homeowners have simply given up and placed their homes for sale. This is unfortunate as many of the owners have lived in the homes for many years.
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On the other hand, some elderly residents have been forced to return to work simply just to pay their property tax.
Gianforte Tries to Reassure Residents
Gov. Gianforte has attempted to reassure Montana residents that the recent surge in property taxes is a short-term solution to the state’s recent cash flow problem.
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However, he claims the state government is steadily investigating alternative long-term solutions. As it stands, Montana residents continue to struggle, and many may be forced to sell their homes long before the government comes up with a viable option to reduce property tax.