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Alternate property-tax plan wins Committee of the Whole; sponsors say it would rebalance burden across classes
Summary
House Bill 155, an alternate property-tax plan proposing a homestead exemption and tiered rates for class 4 residential and commercial properties, passed second reading in committee 79–21; sponsors framed it as restoring 2022 distribution of tax burden and urged it as a long-term fix while opponents urged more modeling.
Representative Thane introduced House Bill 155 as an alternative approach to property-tax relief. The bill would create a homestead exemption for a portion of class 4 residential value and implement tiered rates for class 4 residential and commercial property. Sponsor opening remarks emphasized Montana’s affordability crisis and said class 4 residential properties currently bear over half of the state’s property-tax burden after a recent reappraisal.
Representative Thane told the chamber the bill aims to restore a distribution similar to 2022 levels and cited Department of Revenue pie charts comparing 2022 and 2023 tax burdens, noting residential share rose from about 51.86% to 57.83% in one year. He described the proposal as a two‑pronged approach: (1) a homestead exemption to reduce taxable value for residential property and (2) tiered rates for residential and commercial class 4 property.
Floor discussion emphasized modeling, fiscal notes and whether the bill would require regular legislative adjustments. Representative Durham and others questioned the tiered-dollar-value approach and suggested tying thresholds to statewide averages to avoid frequent rework; Representative Fielder said the alternative that ties rates to an average market value would survive multiple sessions without constant changes. Representative Beatty and other members cautioned about unmodeled tax shifts and recommended further study and a referral to Appropriations.
Despite concerns, the Committee of the Whole recommended House Bill 155 do pass with a 79–21 vote. The Majority Leader subsequently moved and the body ordered that the bill be re‑referred to the Appropriations Committee for further fiscal consideration.
Sponsors urged collaboration with Department of Revenue and local governments on technical matters; members noted the bill's potential to reduce property-tax liability for many homeowners while producing smaller increases for other property classes.
