Property tax relief and the games of the Freedom Caucus

For the past four years, the dominant item of discussion in the state legislature has been residential property tax relief. The issue received a temporary band-aid in 2023 by sending out $675 rebate checks to Montana residents for their primary residence. In 2025, permanent structural tax relief was provided to an estimated 365,000 Montana homeowners with the passage of HB 231 and SB 542. These bills decrease the taxable value assessment rate 44% on the first $400,000 of market value of the home. The next increment in value of $1.1 million receives a reduction ranging between 25% and 44%. The legislation also provided another $400 tax rebate on primary residences and structures used as long-term rentals. 

The vast majority of people in Montana will benefit from the legislation so it’s a good deal. Right? Well, no, not according to a rump group of “right wing” extremist Republican legislators who call themselves the Freedom Caucus. The name Freedom Caucus is a bit of a misnomer. The “High Tax Freedom Caucus” is a more accurate name. Now that the new tax assessments have hit the street and the folks are benefitting from the new tax laws, the High Tax Freedom Caucus is running for cover, flooding social media and the newspaper editorial pages with claims that the new tax bills are actually bad for Montana residential tax payers because they shift taxes and will hurt agriculture.

Let’s look at the facts. If the Legislature had not passed HB 231 and SB 542, your property taxes would have gone through the roof. Statewide property values have increased about 22%. In southwest Montana, the increase in value is over 30%. HB 231 and SB 542 cut your property taxes by changing the multiplier used to calculate your property taxes. Instead of multiplying your market value against a rate of 1.35%, your property tax bill will be calculated using a tax rate of 0.76% on the first $400,000 of value and a rate of 1.1% on the value between $400,000 and $1.5 million in 2025.   

Agriculture will not be unduly burdened. The taxable value of ag land in Granite and Powell Counties increased by about $21,000 from 2024 to 2025 which will generate a total property increase of about $10,000 which, when spread out over 408 ranches and farms, yields an average net increase per ranch of $24.50, an amount easily offset by the property tax savings on the ranch house.

The High Tax Freedom Caucus will tell you they voted “no” because it was just a “tax shift.” But here is the truth: the entire property tax system has been shifting for years—and not in your favor. Residential homeowners have been paying more than ever before as property values increase and without a change in tax rates the property tax burden would have continued to shift more of the property tax burden onto you.

Unlike the High Tax Freedom Caucus, I supported the passage of property tax relief for Montanans while they tried to stick you with a higher tax bill.