{"id":1711,"date":"2021-09-27T11:00:01","date_gmt":"2021-09-27T15:00:01","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1711"},"modified":"2024-04-25T23:19:25","modified_gmt":"2024-04-26T03:19:25","slug":"montana-property-tax-going-up-not-so-fast","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/montana-property-tax-going-up-not-so-fast\/","title":{"rendered":"Montana Property Tax Going Up? Not So Fast."},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/montana-property-tax-1024x303.jpg\" alt=\"Image of the welcome to Montana sign. Captioned: Montana Property Taxes\" class=\"wp-image-1712\" width=\"1024\" height=\"303\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/montana-property-tax-1024x303.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/montana-property-tax-300x89.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/montana-property-tax-768x228.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/montana-property-tax.jpg 1235w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Property prices are surging most everywhere. And when\nproperty values rise, taxes \u2014 charged based on a percentage of property values\n\u2014 rise right along with them. So, confronting property tax hikes has become a\nrallying cry in many states. <\/p>\n\n\n\n<p>Montana is no exception. And now, a former Montana legislator\nhas submitted a proposed ballot initiative to halt major tax increases for\npeople who aren\u2019t buying or selling, but just keeping their real estate. <\/p>\n\n\n\n<p>Let\u2019s take a look at how it\u2019s going so far. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How It Started<\/strong><\/h2>\n\n\n\n<p>Montana homeowners are alarmed. What can limit the spikes in\nMontana\u2019s property taxes? A rise in out-of-staters buying second homes in the\nstate is pushing residents\u2019 taxes up at a startling pace, and the tax rise has\nto be capped, says lawyer and former lawmaker Matthew Monforton.<\/p>\n\n\n\n<p>Montana, under its present law, appraises home and business\nproperties according to their fair market values every two years or when a given\nproperty value rises to a certain point. Given the highly competitive market\nand low interest rates of 2020-21, values are soaring. Joined by Montana Auditor\nTroy Downing, Atty. Monforton set out to champion a constitutional initiative\nto curb these hikes, and create a new system for tax assessors to follow. If\nall goes according to plan, Montana residents will vote on the issue in the 2022\ngeneral election.<\/p>\n\n\n\n<p>The first version of the Monforton-Downing proposal included\nproperties in general. Thus, renters had as much at stake as property owners \u2014\nbecause the higher the taxes rise, the more renters are expected to pay so that\ninvestor-owners can meet their financial goals. Since that first version was\nsubmitted, though, it has been revised to apply only to primary residences.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How It\u2019s Going<\/strong><\/h2>\n\n\n\n<p>Monforton and Downing turned in a revised version at the end\nof August 2021. The rewritten proposal is designed to relieve some of the tax\nburden carried by Montana homeowners. Through a ballot measure, the initiative\nwould allow Montana voters to cap their property taxes.<\/p>\n\n\n\n<p>Once a home is capped, property taxes will go up only when\nowners go to sell. The proposed tax cap would also protect Montana homeowners who\nconvey their home deeds to members of their families, and residents who sell to\nbuy more affordable homes.<\/p>\n\n\n\n<p>The revised initiative would allow the tax cap to protect a\nMontana homeowner\u2019s primary residence only \u2014 not their business real estate. It\nwill not shield vacation homes. <\/p>\n\n\n\n<p>In a nutshell, the measure, in its revised version, will keep property taxes from rising in tandem with higher property values <em>except <\/em>when the property is sold. Homeowners who hold onto their properties will be shielded from tax hikes that exceed \u201can annual increase of 2% or the rate of inflation, whichever is lower,\u201d <a href=\"https:\/\/www.ktvh.com\/news\/montana-politics\/sponsors-resubmit-amend-proposed-2022-initiative-to-cap-property-taxes\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Matthew Monforton said<\/a> on September 2, 2021.<\/p>\n\n\n\n<p>The revised proposal<em> does<\/em> allow local authorities to\nmake decisions about other property tax hikes. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Support for Stability<\/strong><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/support-for-stability.jpg\" alt=\"Image of the outside of a house in Montana with the sunrise behind it.\" class=\"wp-image-1713\" width=\"480\" height=\"320\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/support-for-stability.jpg 640w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/09\/support-for-stability-300x200.jpg 300w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/><\/figure><\/div>\n\n\n\n<p>The proposed Montana provision is called an <em>acquisition-value\nsystem.<\/em> In effect, it rewards longtime Montana homeowners by relieving them\nof hefty tax increases on a regular basis. As a result, it will also keep Montana\nresidents\u2019 housing costs down. <\/p>\n\n\n\n<p>This change would modify the Montana state constitution.\nToday\u2019s constitution rules out the acquisition-value system by its language\nstating property value assessments have to be equalized across the board. In\ncontrast, the new system would offer some people tax protections, but not all.\nThose who keep their homes for extended times, and who watch the values of\ntheir homes rise, would be shielded from the stark property tax hikes that have\naccompanied the home value boom.<\/p>\n\n\n\n<p>The proposal comes at an especially critical time. A large\nnumber of Montana home buyers are coming from out of the state, many from the Bay\nArea and other places in the Northwest and along the West Coast. The pandemic\nyears of 2020 and 2021 have seen a marked trend in which buyers sell homes in\ndensely populated areas, and move to (or buy vacation homes in) destinations\nwith more space. Many are <a href=\"https:\/\/www.deeds.com\/articles\/buying-a-home-how-covid-19-has-changed-the-game\/\">buying\nhomes sight-unseen, after taking virtual tours<\/a>.<\/p>\n\n\n\n<p>While the rising demand for Montana real estate is great for\nsellers, it\u2019s not so great for local buyers who face a highly competitive\nmarket and have to seek real estate in far-flung areas. <\/p>\n\n\n\n<p>The new ballot proposal could also prevent some residents from leaving the state in search of a lower costs of homeownership. Traditionally, <a href=\"https:\/\/stacker.com\/stories\/14078\/where-people-montana-are-moving-most\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">people from Montana move<\/a> mainly to Washington, Idaho, Oregon, and Texas.<\/p>\n\n\n\n<p><strong>\u261b <em>Moving to Texas?<\/em> <\/strong><strong><em>Texas has no income tax, but the state makes up for\nthis by imposing above-average property tax rates. A Texas household typically\npays 1.69% in property taxes, which translates to around $6,000 a year. Fortunately\nfor Texans, there\u2019s a channel to <\/em><\/strong><a href=\"https:\/\/www.deeds.com\/articles\/do-it-yourself-stimulus-the-rise-of-the-property-tax-protests\/\"><em>protest property\ntax assessments<\/em><\/a><strong><em>.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Will It Pass?<\/strong><\/h2>\n\n\n\n<p>As California shows us, a state <a href=\"https:\/\/calmatters.org\/politics\/2020\/10\/prop-13-family-tree\/\" target=\"_blank\" rel=\"noreferrer noopener\">ballot measure to rein in property taxes<\/a>&nbsp;can be a\npowerful tool. Can it work in Montana? It could, after running a gauntlet of\nstate review. The formal name for this proposed ballot measure is a <em>constitutional\namendment by initiative.<\/em>&nbsp;Here\u2019s what needs to happen.<\/p>\n\n\n\n<p>First, the officials in the state Legislative Services\nDivision will examine the Monforton-Downing proposal\u2019s new wording, and determine\nwhether to approve it. After that process is complete, the proposal must be\nexamined by the state Attorney General, whose office will apply a legal review.\nAssuming the measure earns the Attorney General\u2019s nod, the Secretary of State\nwill notify the proposal\u2019s sponsors that it has passed the state\u2019s review. Only\nat that point are the voter signatures collected. <\/p>\n\n\n\n<p>The measure must garner enough verified signatures, and any\nproposed constitutional change faces a high threshold to make the ballot. At\nleast 10% of Montana voters, based on the number that voted for the governor in\nthe 2020 general election, must sign in support. Additionally, the signatures\nmust represent at least 10% of voters in every one of the 40 legislative house\ndistricts of Montana.<\/p>\n\n\n\n<p>So, the initiative\u2019s backers will go out in early 2022,\naiming to collect the 60,000-plus voter signatures need to place it on the November\n2022 ballot. Once they can accomplish that task, the measure\u2019s sponsors say, it\nwill pass. Support for the idea is strong and transcends political affiliation.\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Property Tax Increases: A Matter for Buyers and Owners Everywhere <\/strong><\/h2>\n\n\n\n<p>Property tax assessments are a serious matter for home\nbuyers throughout the country. If you\u2019re a buyer, check the property taxes on\nhouses for sale. Know, too, when to anticipate tax hikes after your purchase.\nWhen you take title to your new home, the transfer is likely to trigger a new\nvaluation for the home, and a tax reassessment. <\/p>\n\n\n\n<p>In some locations, homeowners can challenge their property\ntax assessments. To learn more, see our guide, <a href=\"https:\/\/www.deeds.com\/articles\/how-not-to-overpay-your-property-taxes\/\">How\nNot to Overpay Your Property Taxes<\/a>, on <em>Deeds.com<\/em>.<\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">Christi Jacobsen, Montana Secretary of State:\u00a0<a href=\"https:\/\/sosmt.gov\/elections\/ballot_issues\/proposed-2022-ballot-issues\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Proposed 2022 Ballot Issues<\/a>; Constitutional Initiative, Ballot Issue #9 (new submission received Aug. 31, 2021, replacing Ballot Issue #8).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Mike Dennison for <em>KTVH.com<\/em> (Scripps Media, Inc., Helena, MT): <a href=\"https:\/\/www.ktvh.com\/news\/montana-politics\/sponsors-resubmit-amend-proposed-2022-initiative-to-cap-property-taxes\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Sponsors Resubmit, Amend Proposed 2022 Initiative to Cap Property Taxes<\/a> (updated\u00a0Sep. 2, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Mike Dennison for <em>KTVH.com<\/em> (Scripps Media, Inc., Helena, MT): <a href=\"https:\/\/www.ktvh.com\/news\/montana-politics\/proposed-2022-initiative-would-cap-property-taxes-assessment-values\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Proposed 2022 Initiative Would Cap Montana Property Taxes, Assessment Values<\/a> (updated\u00a0Aug. 17, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>Stacker.<\/em>com: <a href=\"https:\/\/stacker.com\/stories\/14078\/where-people-montana-are-moving-most\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Where\u00a0People in Montana are Moving to Most<\/a> (Jun.26, 2021). <\/p>\n\n\n\n<p class=\"has-small-font-size\">Tessa McLean for the<em> San Francisco Chronicle (SFGate.com):<\/em> <a href=\"https:\/\/www.sfgate.com\/local\/article\/Californians-moving-to-Montana-exodus-tech-16330335.php\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Californians Are Arriving in Montana in Droves. But They&#8217;re Not Welcome<\/a> (Jul. 21, 2021).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credits: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.pexels.com\/photo\/wood-dawn-landscape-sunset-9638459\/\" target=\"_blank\">Marcus Serrano<\/a>, via Pexels, and <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/pixabay.com\/photos\/iga-park-garden-house-sunset-6397601\/\" target=\"_blank\">Julia Boldt<\/a>, via Pixabay. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Property prices are surging most everywhere. And when property values rise, taxes \u2014 charged based on a percentage of property values \u2014 rise right along with them. So, confronting property tax hikes has become a rallying cry in many states. Montana is no exception. And now, a former Montana legislator has submitted a proposed ballot [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30,124],"tags":[],"class_list":["post-1711","post","type-post","status-publish","format-standard","hentry","category-montana","category-property-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Montana Property Tax Going Up? 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