Montana Governor Greg Gianforte met with a task force to discuss property tax reform recommendations. While he commended the group’s efforts, Gianforte did not reveal his stance on specific proposals. However, he expressed support for a “homestead exemption,” which aims to reduce property taxes for primary residences and long-term rentals but increase taxes on second homes and short-term rentals used by out-of-state residents.

The task force’s proposal includes adjusting conversion rates to provide tax relief for Montana homeowners and fund services by ensuring out-of-state property owners contribute fairly. The report also suggests requiring 60% voter approval for local tax increases and redistributing industrial property taxes more uniformly. Gianforte called these ideas “innovative” but did not provide detailed feedback.

Democratic candidate Ryan Busse criticized Gianforte’s task force, advocating for a more straightforward adjustment of conversion rates to alleviate the tax burden on residential, commercial, and agricultural properties. Busse is open to ideas like the homestead exemption but believes basic adjustments should come first. Critics argue that a simple rebalancing could harm farmers and small businesses.

Legislative Democrats proposed a different tax relief plan that would lower taxes on modest homes by shifting some burden to more expensive properties, aiming to protect small businesses. They believe their plan is fairer to low- and middle-income property owners compared to the task force’s recommendations.

Governor Gianforte will review the proposals with agency directors to identify potential legislation for the upcoming session. Despite differing opinions on the best approach to property tax reform, there is a shared goal of providing long-term relief and improving Montana’s tax system.