Senate Tax Committee hears wide-ranging proposal to replace school property levies with statewide sales tax

Senate Bill 558, introduced by Sen. Shelly Vance, drew hours of testimony and questions at a Montana Senate Tax Committee hearing where proponents urged the committee to consider a statewide sales tax dedicated to school equalization and opponents warned the change could be regressive and difficult to implement.

Sen. Shelly Vance, sponsor of SB 558 and a state senator from Senate District 34, told the committee she brought the bill to start a policy conversation about property tax relief and said a rebate would not satisfy her constituents. “I don’t want a rebate. That’s insulting,” Vance said, urging lawmakers to consider shifting school levies into a statewide sales tax account and thereby reduce property-tax bills for homeowners.

The proposal is modeled on a South Dakota sales tax package and would impose a broad sales tax with a long list of exemptions, Vance said. She cited a Department of Revenue memorandum estimating nonresident travelers spent roughly $3.76 billion…