Montana residents were thrown into shock and dismay as they saw their 2024 property taxes go through the roof. Many homeowners checked their tax bills to discover new hikes of over 20%. Angry Montanans have besieged social media to challenge the unbearable tax burden that has made living in their own homes a luxury.
Why Are Property Taxes a Big Deal in Montana?
For a state that generates more of its taxes from real estate, property tax hikes aren’t a new thing. Montana derives over 97% of its local tax revenue from taxes. Also, property taxes account for 9.9% of Montana’s state government’s tax revenue compared to 1.7% for other states.
Therefore, whenever there is a need for more funds, the government simply increases the tax. Until recently, residents have gotten used to the frequent hikes.
Some Residents Had Their Rates Go Up By 800% Through the Year
More than most other states, Montana’s property taxes have soared by unbelievable margins. Shockingly, some residents have recorded hikes of over 800% annually.
One resident lamented that his property tax went from $895 to an astonishing $8,000 in a short period. For many Montanans, the drastic nature of the hikes, rather than the new tax amounts, is the bigger challenge.
Residents Are Protesting On Social Media
Obviously tired of the regular tax hikes, angry Montanans have taken to social media to air their displeasure. They have called upon the state government to consider a downward review of the taxes.
With residents paying as much as $7,000 monthly, many have complained about their inability to foot household bills even with full-time jobs and social security assistance.
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A Bold Request
One of the demands of most of these disgruntled Montana residents is the activation of a moratorium. This means that the government holds off on tax collection until the harsh economic situation and other reasons responsible for the moratorium have been resolved.
For many government officials, this is a bold request, given the high rate of government dependency on taxes.
Montana Isn’t Alone
Montana residents aren’t the only ones grappling with climbing property tax rates. Across the country, the tax has soared for several reasons.
According to ATTOM CEO Rob Barber, most of the hikes are due to the ripple effects of inflation. He blamed the hikes on “inflationary pressures… along with rising public employee wages and other major expenses.”
Government Expenses Have Increased
According to Barber, inflation has increased government expenses. For example, funding for road maintenance, fire service operations, and other public initiatives has risen, so governments must increase taxes to meet up.
The government also had to increase the purchasing power of its workers to match the rising inflation. A tax increase is one of the quickest ways to generate funding.
California Increased Property Taxes for a Different Reason
In California, property taxes have also gone up, but for an unusual reason. The state government is using the extra money to fund conservative initiatives in line with its relentless drive for a safer climate.
Consequently, residents should expect property taxes to double throughout the year. Meanwhile, the state government is battling to convince residents that it is a noble and small price to pay for the greater good.
The Rise in Real Estate Prices is Also Responsible
After the pandemic, Montana witnessed growth like never before. Consequently, home prices began to shoot up. Consequently, property taxes also began to rise.
State officials reevaluate properties and review taxes every two years to match their new values. A Republican state senator, Brad Molner, disclosed that lawmakers received a warning that values would rise significantly this year.
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Montana Retirees Have Been Forced Back to Work
The new taxes have become so overwhelming for many retiree property owners that they’ve decided to return to work. Many retirees have begun to apply for and work full-time or part-time jobs to bridge the gap created by the tax surge.
For some other homeowners, selling off their properties to go live somewhere more affordable is the only solution in sight.
A Resident Describes Her Experience
Deborah Newville is a property owner in Montana. The Bozeman resident was as alarmed as thousands of other homeowners upon opening her tax statement.
“It threw me such a curveball,” she said. Her new property tax increased by $5,000 to $12,000 a year, meaning a thousand dollars monthly. She described a reaction of shock followed by worry.
Deborah Might Have to Sell Her Home
Deborah has contemplated selling her home to relieve herself from the overbearing tax burden. But this is a difficult decision to make, and she tells us why.
Her parents bought the property in 1968 and passed it on to her to keep it in the family. Hence, to Deborah, the house is worth more than its market price. Selling it off would be pretty painful.
There are Serious Consequences for Tax Defaulters
Refusing to pay the tax is one option available to Montana’s property owners, but it is the most costly one. Many property owners who may be contemplating this move may not be aware that the IRS has the power to seize their property as a result.
For now, residents are doing all they can to get the Republican-led government to back down. With elections around the corner, anything is possible.
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