Darrell Ehrlick

(Daily Montanan) One of the most hotly debated and intense issues was how to “fix” Montana’s residential property tax rates in the 2025 Legislature, culminating in a fractured Republican Party that claimed nine of its members who sided with Democrats should be exiled from the party.

But a new constitutional property tax initiative being led by Sen. Wylie Galt, R-Martinsdale, could end the fight in 2027 — when the Legislature meets again — before it even begins. Galt is the former Montana Speaker of the House.

Galt has proposed a constitutional initiative that would cap all property taxes at no more than 2% per year. This is a significant change because it would not only apply to residential taxes, which was the main focus of many lawmakers in 2025, but it would also cap all classes of properties, including commercial, agricultural and industrial.

“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,” Galt said.

Some fellow Republicans like Sen. Greg Hertz, R-Polson, have challenged the 2025 property tax resolution in court, saying that it wasn’t so much a fix as it was a shift toward businesses and recreation property, like cabins.

The measure would also change assessments, limiting the increase to the assessed value of a property, like a deck, a large or a barn — restricting it to the actual cost of improvements.

Finally, Galt said the initiative also excludes school district mills or levies and also allows a majority of the electorate to approve mill levies that exceed the cap.

As similar ideas were floated previously, city leaders from across the state accused the state of shortchanging them, saying that they’re not immune to the financial pressures of the economy, such that when property values increase, so too do costs of providing government services, like police and fire departments which may seek cost-of-living or other adjustments that match more closely the rate of inflation, a number that has recently been above 2%.

For now, there’ll be a hustle in order to get the measure on the ballot, because it must be approved by state officials, and then collect the necessary amount of signatures just so it can be on the ballot. That requirement will be more than 60,000 voters, based on the last election numbers.

The measure was hailed by fellow Republican members of the Montana House of Representatives, including Speaker of the House Brandon Ler and House Majority Leader Steve Fitzpatrick, R-Great Falls.

“Property taxes have become one of the most consistent concerns we hear from Montanans across the state,” said Majority Leader Fitzpatrick. “While the Legislature has taken meaningful steps to deliver relief, it is clear that more lasting solutions are needed. Capping property tax growth is a straightforward way to provide certainty and protect families, homeowners, and small

The Daily Montanan reached out to the Montana legislative Democrats who said they have not taken a position on the new proposal and are currently evaluating it, according to a spokesperson.