Montana is #1 (well actually #50)

[LFC911]

Would a sales tax help take some of the burden off of property taxes or just give more money to the govt?

 

[Dust Rider]

I am not looking forward for the upcoming property tax bill. I’ll be crying tears of pain, not joy.

 

[Idaboy]

If there were only buyers and sellers this might be valid, but you've got hedge fund builders and investors (a new development near me was built by BlackRock) doing things to local economies via overbuilding and densifying that negatively affect the rest of the world. Sure, my house value goes up, but not enough to even get close to incentivize me to sell because i can afford nothing else in the area.

It is yet again the Tragedy of the Commons. Apparently we can't learn...

Completely agree...."Tradegy of the Commons"....theme for the US unfortunately

 

[Montcoyote]

Last Legislative session the Montana Property Tax issue was a hot topic, but the Legislature chose to use an enormous budget surplus to "fix" other issues. The Legislature was aware the property tax rate needed to be addressed or residents would be hit by a large bill once property values were reassessed. The bean counters provided the exact rate to offset the likely effects of high property values. Instead, the short-term solution was the two Property Tax rebates (I just applied for my second). Montana residents should all be paying close attention in the next three months as the Executive budget gets finalized after the election. The Governor's Property Tax Task Force was used to identify a suite of "solutions" to shift the tax burden from property tax. Add in that both red and blue Counties are pulling together (Montana Association of Counties met in Missoula last week) to make sure these "solutions" don't just make the Governor look good while passing the expense to local governments. Sales Tax, local tourist taxes, and other ideas are resurfacing. Gonna be a wild ride!

 

[LFC911]

The other thing I was thinking of is I know of at least three people in my circle that make a whole lot more money than I do that incorporate LLC’s in Montana, just so they can avoid their local state sales tax. These are six figure boats, RVs, horse trailers, etc., that people are taking advantage of the law in their favor. If Montana was to correct that issue, maybe it would generate more revenue? I’m not sure?!?

 

[Turkeygetpwnd38]

There will definitely be some folks in Montana (because they bought their home 20+ years ago) that simply won't be able to pay the property taxes, maybe already is.

Not sure if there other states, but California "freezes" your appraised value at the time you purchase your home—this is what they calculate your taxes with and as along as you continue to reside in it. This only applies to residents of the state and the home has to be your primary place of abode- not your second, third home.

We had a similar initiative come up last legislative cycle and evidently it didn't have required number of signatures—I never saw sign up sheets, but would gladly have signed. Local, county and state officials and legislators were up in arms about it and vowed to fight it in the courts, which told me the people that drafted the initiative were definitely on the right track.

Yup, Florida has something similar called a homestead exemption. If it is your primary residence and you are a resident, the value at purchase gets locked in for property tax purposes (-50k) and can only rise 3% max a year.

I purchased property in MT about 10 years ago and was surprised they didn’t offer their residents something similar. Seems common sense to take the pressure off long time residents and put it on the second homes and big money coming in. I was also surprised purchase price isn’t public record. I’m sure it would help now but might be too little too late for a lot of folks. The trade off with that might be implementing a sales tax though?

I love Montana and spend a ton of time there, hope y’all get some of these growing pains figured out, things are changing rapidly.

Before I catch flak for being part of the problem, my property is off grid, not in a “desirable/vacation” area and unreachable 4 months out of the year. It’s not pushing any residents out and didn’t raise anyone’s taxes!

 

[mtwarden]

Would a sales tax help take some of the burden off of property taxes or just give more money to the govt?

I look at Wyoming who have had a sales tax for decades. If I understand their legislation that enacted it, it stays at 4% forever unless the the voters want it higher- Wyoming guys can correct that if wrong.

Not sure it impacts their property tax, BUT with that legislation they completely eliminated their state income tax. Now that tourism/recreation closely vies with agriculture as the number one industry- getting rid of our income tax while paying 4% on goods (sans exceptions like medical services, prescriptions and food (grocery store food) would be a worthwhile trade

I’m definitely writing my representative and senator letting them know I’m watching their work on this property tax debacle.

 

[180ls1]

San Diego guy here. A LOT of friends (I'm in my 30's) are leaving or have already left. You need an income of $274,000/yr to afford the average house currently. Combine that with being young and trying to raise kids and they don't really have a choice.