For the past 36 years, the Montana Department of Revenue has helped governors prepare balanced budgets before the legislature arrives. Montana’s Governors. Marc Racicot, Judy Martz, Brian Schweitzer and Steve Bullock knew that the Montana Constitution requires a balanced budget. The budget cannot spend more money than it takes in through taxes and other sources.

In each of those years, the governor obtained the most recent property assessments to help calculate the property taxes that would be collected to balance the budget. In nearly every one of those years, property values ​​(including homes) had risen — sometimes a little, sometimes a lot.

Governors — Republican and Democrat — were previously advised by Internal Revenue Service experts that unless the governor and legislature cut the property tax rate, property taxes (residential taxes make up 60 percent of the total) would rise. For 36 years, those governors listened to the recommendation and cut — lowered — the rate so that homeowners would NOT see a tax increase.

I know about these things, because as your governor I have not levied a single tax or levy on anything for eight years… property, income, liquor… nothing!

Governor Greg Gianforte was advised by his tax office in November 2022 that the rate should be lowered from 1.35% to 0.94% for the next two years to ensure that homeowners would not see a huge tax increase. He chose, and the legislature agreed, not to adjust the rate, and homeowners have seen their taxes increase at the fastest rate in history. This new tax increased the revenue collected by the Montana state budget by more than $500 million in two years. Taxes increased on most homes in Montana.

Montana has never had as many elected Republicans as it does today. Republicans control every branch of government. These tax increases were placed on your shoulders without the help or consent of a Democrat. The Montana Republican Party is now the party of higher taxes and more government spending.

Housing costs will continue to rise throughout Montana due to the tax increase. Rents will increase for renters as homeowners pass the tax increases on to renters.

Amid concerns about a COVID-related economic downturn, the Trump and Biden administrations have injected money into all 50 state budgets. When Gianforte wrote the state budget, he had the largest budget surplus — $2.6 billion — in history. All 50 states also had historic surpluses.

Who got the money?

No increase in funding for education or health care. No help for working families, government workers or Main Street businesses.

The two largest property taxpayers in Montana are NorthWestern Energy and BNSF Railroad. They both got millions of dollars in tax breaks. Northwestern sent the loot to their headquarters in South Dakota and then raised your electric rates. BNSF sent the loot to Fort Worth, Texas, and raised freight rates to ship Montana’s wheat crop to Portland. Refineries, pipelines, power lines, and mines all got big tax breaks and didn’t invest in Montana anymore or hire Montana workers. They just sent your money to their shareholders.

The governor and Republican legislators first claimed they weren’t raising taxes, then falsely claimed that counties were raising your property taxes. County commissioners (most of whom are Republicans) were disgusted by that accusation and unsuccessfully sued the governor to try to lower your taxes, reminding the Helena crowd that state law only allows counties to increase spending by half the annual rate of inflation (about 2%).

The disgraced governor eventually convened a “Property Tax Task Force.” The task force was made up of the governor’s staff, his friends, legislators, and lobbyists. He even brought in some out-of-state “experts.” They produced a 30-page document with all sorts of ideas, but still didn’t recommend the simple solution of cutting the property tax rate from 1.35% to 0.94%. So your taxes on your home are still going up.

The 30-page document (smoke and mirrors) was prepared by the same governor’s staff, legislators and lobbyists who devised and voted on your tax increases during the 2023 legislative session. Thirty pages of recommendations, yet not a single vote has been cast.

I assume they all agreed before they sat down that taxes should go up and out of state corporations should be allowed to keep your money.

Brian Schweitzer is a third-generation Montana rancher, husband, father, grandfather, and served as Governor of Montana from 2005 to 2013.