Galt’s constitutional initiative would cap property tax increases to 2% per year
HELENA, Mont. – Senator Wylie Galt, R-Martinsdale, today launched an effort to put a constitutional initiative on the November ballot to cap local property tax increases to 2% per year.
“Skyrocketing property taxes have made it harder for Montanans to make ends meet, especially for hardworking families and seniors on a fixed income. They shouldn’t have to consider selling their home because their property tax bill is too high. We need to get property taxes under control so Montanans can afford to stay in their homes,” Sen. Galt said.
“I’m proud of the reforms we made with Governor Gianforte in 2025 to permanently cut property taxes for 80% of Montana homeowners, but we must do more. We need to cap property taxes to make things more affordable for Montanans,” Sen. Galt continued.
“That’s why today I’m launching a constitutional initiative to cap local property tax increases to 2% per year, while protecting school funding and still allowing voters to pass mill levies at the ballot box,” Sen. Galt said.
Senator Galt’s constitutional initiative amends the Montana Constitution to limit local governments’ property tax increases to no more than 2% per year. The cap applies to all classes of property, including residential, commercial, agricultural, industrial, and timber, for example. The 2% cap would be calculated using the amount of property taxes paid in 2024 or 2025, whichever is lower, for residential property.
The ballot measure also limits increases to assessed values based on improvements or new property – like building a deck on a home, a garage, or a pole barn – to the actual cost of improvements or new property.
The constitutional initiative also excludes school district mills or levies, and continues to allow a majority of the electorate to approve mill levies that may exceed the cap.
For context, the annual average county property tax growth rate was 6.19% between tax years 2001 and 2022, and city property tax growth rate was 6.13%, according to the nonpartisan Legislative Fiscal Division.
For Montana voters to consider it on the November ballot, the constitutional initiative must be reviewed by state officials and then gain the necessary signatures to qualify for the ballot. First, the Secretary of State provides the constitutional initiative to Legislative Services Division and then the Attorney General for review. Once approved, more than 60,000 Montana voters must sign a petition to get the initiative on the ballot.
“Montanans need and deserve relief from rising property taxes, and we’re working hard to get this 2% cap on local property taxes on the ballot,” Sen. Galt said. “I’m talking with Montanans across our state, and their response is enthusiastic. We’ll keep building support, and we’ll get this across the finish line.”
The proposed text of the constitutional amendment and the ballot language may be found here.
THE COMPLETE TEXT OF CONSTITUTIONAL INITIATIVE NO. ___ (CI–___)
BE IT ENACTED BY THE PEOPLE OF THE STATE OF MONTANA:
Section 1. Article VIII, section 3 of The Constitution of the State of Montana is amended to
read:
“Section 3. Property tax administration – limitations on amount of property taxes paid.
(1) The Subject to subsections (2) and (3), the state shall appraise, assess, and equalize the
valuation of all property whichthat is to be taxed in the manner provided by law.
(2) Except as otherwise provided in subsection (3), the property taxes paid by the property
owners of all property class types in any tax year cannot be increased by local government units
by more than two percent collectively, unless the increase is the result of new property or
improvements. The assessed value attributed to new property or improvements cannot exceed
the actual cost of the improvement or new property. As applied to residential property, the initial
taxable year for purposes of this calculation shall be 2024 or 2025, whichever is less.
(3) The two percent cap in subsection (2) does not apply to:
(a) school district mills or levies; or
(b) an increase that is approved by a majority vote of the electorate.”
Section 2. Savings Clause. Unless the result of a valid protest proceeding, [this act] does not
require the state or any local government unit to refund any portion of property taxes lawfully
collected as of the effective date.
Proposed Ballot Language – 135 word limit (133 words)
BALLOT LANGUAGE FOR CONSTITUTIONAL INITIATIVE NO. ____ (CI–___)
CONSTITUTIONAL INITIATIVE NO. ____
A CONSTITUTIONAL AMENDMENT PROPOSED BY INITIATIVE PETITION
CI–___ amends the Montana Constitution to limit property tax increases to two percent per year.
Local property tax increases levied by all local governmental units for all property classes are
limited to two percent, except for increases for improvements or new property, such as, newly built
homes. Increases to assessed values based on improvements or new property cannot exceed the
actual cost of the improvement. The cap applies to residential, commercial, agricultural, industrial,
timber and all other property tax classifications. For residential property, the two percent limit
would be calculated using the amount of property taxes paid in 2024 or 2025, whichever is lower.
The cap in CI–___ does not apply to school district mills or levies and allows a majority of the
electorate to approve mill levies that may exceed the cap.