Montana's Property Tax Charade Exposes Government's Picking Of Winners And Losers
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Dr. Jane Gillette Representative - Montana State Legislature
Representative - Montana State Legislature |
Montana's Property Tax Charade Exposes Government's Picking of Winners and Losers
Dr. Jane Gillette
Representative - Montana State Legislature
Montana’s latest property tax legislation isn’t reform — it’s a rigged game where the government decides which landowners deserve breaks and which get stuck with the bill.
This discriminatory system abandons fair taxation principles and creates economic chaos across multiple sectors.
The setup is simple but devastating: Primary residential wins big with cuts approaching 80%, while everyone else pays the freight. The government has essentially declared that living in your house makes you worthy of tax relief, but using land for any other purpose makes you a target for higher taxes.
Ranchers and farmers face the cruelest irony. These stewards of Montana’s landscape, who feed our communities and maintain our rural heritage, become unwilling financiers of suburban tax breaks.
Through our floating mill system, every dollar of residential relief translates to higher mill levies that slam agricultural operations with no corresponding rate reductions. A cattle operation or wheat farm could see tax bills jump 20-40% while their residential neighbors toast their savings.
The tourism sector also gets crushed in this scheme. Montana’s economy has always relied on visitors drawn to our mountains, rivers, and wide-open spaces.
Yet vacation cabins, guest ranches, and rental properties — the very infrastructure that supports this heritage industry — face punishing tax increases. A family’s treasured mountain retreat or a small-town bed-and-breakfast suddenly becomes a liability rather than an asset.
Small business owners discover they’re playing a rigged game, too. While modest commercial operations might see some relief, the math often doesn’t work out.
Business owners frequently live in homes getting residential breaks while watching their shop, restaurant, or service business get hammered with increased commercial rates and higher mill levies.
The floating mill reality makes this worse than simple rate adjustments. Local governments maintain their spending by automatically raising mill levies when some properties pay less.
It’s a tax increase mechanism that ensures residential savings come directly from the pockets of agricultural producers, tourism operators, and business owners.
This system creates perverse incentives. Why maintain productive ranch land when converting to residential development brings tax advantages? Why invest in tourism infrastructure when the government penalizes hospitality businesses? Why expand agricultural operations when the tax code treats farming as a revenue source for suburban homeowners?
The arbitrary nature of these distinctions reveals the fundamental injustice. A millionaire’s mansion gets preferential treatment while a third-generation rancher or a small-town inn operator gets soaked.
Economic contribution, community value, and ability to pay become irrelevant — only property use categories matter.
Real tax reform would recognize that Montana’s strength comes from diverse land uses working together: productive agriculture, vibrant tourism, and thriving communities. Instead, we got a system that forces these sectors to subsidize residential property owners through discriminatory taxation.
Government shouldn’t be in the business of declaring some land uses more deserving than others. Fair taxation means equal treatment, not political favoritism masquerading as relief.
Dr. Jane Gillette represents House District 77 (Manhattan, Clarkston, Willow Creek, and Broadwater) and believes all Montanans deserve equal treatment under tax law.
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Image 1 Caption: Dr. Jane Gillette represents House District 77
