Flathead Valley members of the Montana Freedom Caucus are hopeful that a potential special legislative session would alleviate the burden of property tax increases on residents.

The caucus — a group of right-wing lawmakers — asked the Office of the Secretary of State on Nov. 19 to poll legislators on whether to hold a special session come January. The effort to bring legislators back to Helena is the latest round in an ongoing battle of who is at fault for property tax increases and how best to address the expected hike. 

The caucus outlined four goals for the special session: return a roughly $230 million budget surplus to residents, approve a Taxpayer’s Bill of Rights, clarify laws addressing mill levies and provide property tax relief. 

“We’re at a point now where we’ve seen what has taken place, we know what's taken place… We have definite issues that we need to resolve and this is the way to do it. Properly. That's what we have to do,” said caucus member Rep. Steve Gunderson, R-Libby. 

Gunderson described the dispute surrounding how the Montana Department of Revenue determines the amount of mills the state can collect in property taxes as an urgent issue for the Legislature to address.

The Montana Supreme Court in November ruled that counties are required to levy 95 mills for school funding, as determined by the state, after all but seven counties voted to levy just 77.9 mills. Flathead County was among the counties that approved the lesser amount of mills. 

“We’re simply asking the state to do their part in capping taxes just like the counties do,” said Flathead County Commissioner Pam Holmquist in October. “And budget conservatively like we do in Flathead County.” 

The Montana Association of Counties has filed suit against the Department of Revenue since the Supreme Court decision, arguing it incorrectly calculated statewide mills.

Fellow caucus member Rep. Bob Keenan, R-Bigfork, said that he supports holding a special session to address property taxes. 

“... We have a problem, and that problem is property taxes,” Keenan said. “It is a problem that the people of Montana expect us to solve. Having political sound bites back and forth doesn't solve any problem.”

If the state collects more than necessary from taxpayers, resulting in a surplus, it is the job of the government to return it, Keenan said. 

Currently, there is $230 million in surplus tax revenue from 2023. That money, caucus members argue, should be returned to taxpayers. The passage of a Taxpayer’s Bill of Rights, they said, would create a mechanism for that reimbursement to be automatic in the future. 

A special session also could clarify what the state is responsible for versus the municipalities, said Rep. Braxton Mitchell, R-Columbia Falls. 

“There are a lot of misconceptions about what the state is involved in and what the municipalities can do,” Mitchell said. “We just want to do what we can with as much as we can.”

Gov. Greg Gianforte’s administration has attempted to place blame on local governments for potentially higher tax bills after property assessments went out earlier this year. Gianforte was joined by several Republican legislators who argued that taxpayers should lobby cities, school districts and counties to cut spending if they were worried about tax increases. 

Lawmakers who spoke to the Inter Lake reported receiving tax-based complaints and concerns from constituents.

“Property tax is a complicated issue, it really is,” said. Rep. Carl Glimm, R-Kila, a Montana Freedom Caucus member. “We've tried to come up with a couple possible solutions… it's not a silver bullet but it's something that I think can help.” 

Over the next week, legislators across the state will receive their poll and will have 30 days to vote and return it. If a majority of legislators — at least 76 members — reply affirmatively to the poll, then a special session will convene.

DEMOCRATS LIKELY won’t be supporting efforts to reconvene the Legislature. 

"Republican legislators are desperately trying to duck accountability for failing to reduce Montanans' property taxes while giving breaks to the wealthy and big corporations,” Senate Minority Leader Pat Flowers, D-Belgrade, and House Minority Leader Kim Abbott, D-Helena, said in a joint statement.

State Democrats unsuccessfully asked for a special session in July to address property taxes. Flowers and the two minority whips wrote Gianforte asking him to call a one-day special session to adopt a new bill that solely looks to adopt “revenue-neutral property tax rates to prevent ongoing damaging tax increases to homeowners,” stated the request. 

Gianforte took no action on the request. At the time, a spokesperson for the Governor’s Office said that Gianforte remained committed to “building on recent reforms and rebates” while urging “county commissioners and other local leaders to exercise fiscal responsibility,” according to multiple media accounts.

The Democrats also argued that Republicans rejected attempts to solve the problem of increased property taxes due to newly appraised property values during the 2023 legislative session. They responded to the issue instead with a one-time property rebate, according to the request sent to the governor, which “fails to adequately address the crisis.”

Democratic leaders emphasized that they do not support the requested special session as it “fails to propose real, long-term solutions.”

“Had we gotten after it then, we wouldn’t be facing these staggering bills right now,” Flowers said last week. 

Democrats want their request fulfilled before supporting one from the Montana Freedom Caucus, he said. 

Gunderson panned the Democrats’ response to the request. 

“I guess I have to ask the question as to how serious they are about fixing the problem if they wont even come together for a special session,” Gunderson said. “[Republicans] are, and I can truthfully point that out.” 

If constituents are in favor of a special session, Gunderson said, it is important to reach out to their local legislators and express their support.

The special session would convene on Jan. 15th at 10 a.m., as requested by the caucus. 

Reporter Kate Heston can be reached at kheston@dailyinterlake.com or 758-4459.