HELENA — The House on Monday endorsed another tax reduction, with this one cutting state property taxes across the board and reducing state revenues by about $13 million a year.

On a 58-42 vote, the House approved House Bill 201 by House Majority Leader Keith Regier, R-Kalispell. All Republicans but one voted for the bill, while all Democrats, joined by Rep. Daniel Salomon, R-Ronan, opposed it.

The bill was sent to House Appropriations for further review. That panel also is looking at two other tax bills passed last week that would cut revenues by a combined $120 million over the next two years.

HB201 would reduce the state school equalization mills levied on property to 35 from the current 40. A mill is a unit for property taxation.

Regier said his bill wouldn’t reduce the number of mills available for schools, but require other sources of general fund money to supplant the money raised by the 5 mills. Montana has had a healthy budget surplus that can be tapped to replace the mills, he said.

“Property taxes are like a mortgage that never gets paid off,” Regier said.

Rep. Kathleen Williams, D-Bozeman, said the average homeowner would see an annual property-tax cut of $11 under the bill, while some large out-of-state corporations would save several hundred thousand dollars a year.

She said the Legislature is being asked make major cuts taxes again with this bill, the two others passed last week and hundreds of millions in other tax cut bills that are pending.

“These are huge numbers,” she said. “We need to be more strategic, more holistic, in tax policy.”

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