Gov. Gianforte Issues Challenge to Montana Legislature During State of the State
"Montanans are counting on us to get this done and we should"
Governor Greg Gianforte challenged the Montana Legislature during his State of the State address Monday night to help lower property taxes.
The governor said he wants the Legislature to pass the homestead rate cut (HRC) by the middle of February.
“I know it’s a tight deadline, but the Department of Revenue needs some runway to implement this rate cut for Montana homeowners in 2025. Montanans are counting on us to get this done and we should,” he added.
Gianforte, who is entering his second term, said this reform is predicted to lower Montana home owner’s property taxes by 15 percent and for small businesses by 18 percent. He added that this would reduce property taxes for over 215,000 homeowners' primary residences and 32,000 small businesses, as well as “indirect relief” for 130,000 renters in the state.
The governor unveiled the HRC property tax cut in November.
Gianforte said the focus should be on “Montana homeowners, not corporate interests.”
The governor added that the state needs to encourage local governments to keep property taxes “as low as possible.”
In Montana, its population grew by almost 10 percent between 2010 and 2020, but the number of homes increased by less than 7 percent, Gianforte said.
“With more people moving to Montana and with not enough homes being built, the price of housing has skyrocketed, putting the key element of the American Dream beyond reach for many,” he explained.
Andy Shirtliff, the Montana Building Industry Association executive director, recently told The Montana Chronicles that the state needs to build 70,000 housing units to address the housing shortage.
Despite this shortage, Gianforte said Montana is leading the country in “pro-housing policy.”
“As a result of work in 2023, counties and cities are reworking their growth plans with a keen eye on increasing housing supply and bringing down housing costs,” the governor said.
Two of the laws passed during the last legislative session, Senate Bill 323 and Senate Bill 528, are in a legal battle.
Senate Bill 323 allows for duplex use in zoning regulations in single-family residencies, and Senate Bill 528 authorizes additional dwelling units in single-family residencies. Senate Bill 323 applies to cities with at least 5,000 residents.
“Montana really was a bit of a pioneer on this issue. It’s been referred to as the Montana Miracle,” David McDonald, a lawyer for the Pacific Legal Foundation, previously told The Chronicles.
The lawyer said he is confident that the defendant will win this case.
“If you look at the way that the Montana Supreme Court overturned the preliminary injunction ruling of the trial court, I think that’s a good indication of where this will eventually go,” he added.
To further help improve the state’s housing supply challenges, Gianforte said he wants to see more investment in the HOME program. This is a government program that expands the “affordable housing for very low-income and low-income Montanans,” according to the Montana Department of Commerce.
The governor said this program has led to nearly 1,000 new homes being built in Montana.
Gianforte added that this program was not a handout and that the money the state invested in was returned to the state for reinvestment.
“Given the success of this plan, we should strengthen it by investing an additional $100 million in one-time-only funding,” he said.
Gianforte said if the fund and its proceeds had doubled its current budget, Montana would have another 1,000 homes under construction.
“I look forward to working with each of you to secure more housing solutions for Montanans,” he added.
Another thing that Gianforte wants to help Montanans with is income taxes.
The governor said failed leadership in Washington, D.C., has increased the cost of living throughout America.
“The federal government does not live within its means. They are imposing a crushing national debt on the backs of our kids and grandkids,” he said
“The nationwide affordability crisis has harmed hardworking Montanans,” the governor explained.
Gianforte added that Montanans should keep more of their income.
The governor called on reducing the state’s income tax rate from 5.9 percent to 4.9 percent. Gianforte said that this will provide tax relief to workers and small business owners.
“Our proposed tax cut provides more than $850 million in permanent relief. A new record tax cut that benefits Montanans at every income level,” he said.
The governor added that the money Montanans make is their “hard-earned money” and not the government’s.
Looking forward into the future, Gianforte said he is “eager to work” with President-elect Donald Trump and his cabinet to make America affordable, safe, prosperous and great again.
The governor said his vision of Montana remained “simple and steadfast.”
“Create good paying jobs. Open the doors to greater opportunity for all Montanans to achieve the American Dream and to protect the Montana way of life,” he added.
Gianforte said Montana has made great strides over the last four years, but the work is not done. The governor added that he was filled with optimism for Montana.
“America lives in Montana. In our vast landscapes, in our communities and most importantly in the hearts of our people,” he said.
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Zachery Schmidt is the founder of The Montana Chronicles. If you have any tips, please send them to montanachronicles@proton.me.