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Time to separate politics from property tax reform

by Dud Mahler
| April 27, 2011 1:00 AM

Bipartisan politics, Republican budget

vs. the governor’s budget and veto power are making headlines

daily. About the only issues both parties appear to agree on is to

ignore property tax reform again and it is politically astute for

the state to continue a policy to shift the burden of state 101

mills property taxes from Eastern Montana to the West.

The people we have elected to enforce

our constitution and protect all of our residents, have ignored the

adverse affects of a mismanaged 2008 reappraisal, refused to

recognize that House Bill 658 does not provide equal protection or

treatment for all, and blocked every proposed bill that could have

given the people an equitable, predictable and financially stable

property tax system.

This “do nothing” policy when it is

obvious that out property tax system has failed, is evidence that

our leaders do not really care that the taxes from Montanans who

have owned property for generations are forcing them to sell their

homes, and, since little property is being sold, to have to borrow

money for taxes. Further, few people believe they could sell their

property at the overstated appraised value and all are aware that

real property values are decreasing every month, so we are paying

more tax than we should anyway.

Adding insult to injury is the fact

that our mills are being increased because of the 2008 reappraisal

errors as well as to compensate for EPTAP reductions in taxable

value, adjustments in value due to protests, and to replace lost

revenue to schools.

Matters only get worse when one

realizes that this agony is completely unnecessary; he is paying

increased taxes not to help pay for schools or services but only to

offset the decreases in taxable value of owners whose market value

increase is below the state average.

You should know that by blocking

proposed reform bills, our governor, as well as the legislature,

refused to consider allowing the state wide taxable value to

increase to provide additional university and school revenue of $20

million in 2011-2012 and $40 million in 2013-2014 at no additional

cost to the taxpayers.

How can anyone, knowing the problems we

have funding the university and schools, refuse to change Montana’s

property tax system from tax shifting back to a controlled revenue

source? It makes no sense to reduce services or revenue when a

alternate or unused revenue source is available.

The people of Montana are experiencing

politics at its worse, and politics has no place when it comes to

taxation. Our governor who is our designated “champion” refuses to

get involved in the property tax debacle, and there is not one

legislator with the guts to stand up and say, “Enough is

enough!”

Montana Residents for Fair Property Tax

has been trying to use the “system” for over eight years, stymied

at every turn by the East Side legislators taking revenge for some

past sin where the West benefitted from the prosperity of the East.

The people of Montana need property tax reform now and the only

alternative we have left is to prove that HB 658 is

unconstitutional and the taxpayers and owners of property in growth

areas are being discriminated against for political reasons. We

have retained counsel and plan to file suit after the legislative

session is over. (We know the governor is well aware of our plight

and had hoped he would intervene when he was made aware that

nothing is being done by telling the legislature and Department of

Revenue to fix the problems or go into a special session.)

For more information or to sign-up to

join our effort, please go to our website: http://mtproptax.org/.

You can contact me by email from the site or call 862-9785.

Mahler is with Montana Residents for

Fair Property Tax.