House committee hears bill to create income tax credit tied to property-tax burden

HELENA — The House Taxation Committee on Friday heard testimony on House Bill 154, a bill that would create a refundable income tax credit intended to reduce the gap between households’ property tax burdens and their ability to pay.

Representative Jonathan Karlen, who represents House District 98 in Missoula County, said the credit would tie relief to household income and property tax liability and would also apply a rent-equivalent calculation for renters. “House Bill 154 … is an income tax credit that fundamentally will address the mismatch between property tax or a family's property tax burden and their ability to pay,” Karlen said.

The bill would calculate credits using income thresholds and a share of a household’s property tax burden; Karlen provided examples where a household earning $80,000 with a $4,500 property tax bill would receive an $875 credit, and a $60,000 household with a $3,500 tax bill would receive just over $1,200, as described during the hearing. Karlen said the bill uses an existing statutory…