HELENA — Lawmakers heard first testimony Wednesday on a flagship property tax bill that would essentially shift property taxes away from primary residences, long-term rentals and small businesses.
Rep. Llew Jones, R-Conrad, is carrying House Bill 231, which is the so-called “homestead” bill championed by Gov. Greg Gianforte’s office. Jones said about 230,000 homeowners would see a 17% reduction in taxes on their primary residences under the bill.
The burden would then fall on properties like vacation homes and short-term rentals, which would see a 53 percent increase — a hike Jones justified with what he called the “significant likelihood” that their often out-of-state owners do not contribute to Montana income tax, and therefore limit the support of state services.
“Well, who cares? Right? They don’t pay Montana income tax. If you look at what property tax is forecasted to bring in, it’s $2.34 billion. If you look what income tax is forecasted to bring in, it’s $2.55 …