Comments on: Kalispell Man Seeks Initiative to Cap Property Taxes
By Firebeam on 11-12-09
Make damn sure you’re bill is written water tight. Some guy in Washington State has gotten several measures passed by the voters, only to have them challenged (most struck or partially-struck down by the courts) in court and lost because the language in the legislation wasn’t properly or clearly written. If you don’t write it well, some lawyer will screw it up.
By 1873 on 11-12-09
If California is able to fix property taxes at the rate that existed at the time of the property’s purchase, why can’t Montana do the same? The problem with ever increasing property taxes is that people (particularly retirees) can eventually be taxed out of their homes. I realize some people may argue that California has a sales tax to generate additional revenue, but then Montana doesn’t have the massive welfare system that California has, either. There is no reason why Montana cannot have a fixed property tax and still have the politician’s live within a budget.
By David Fetveit on 11-13-09
I am all for capping increases - but the current system has so many levels, capping assessment won’t do much good. After the assessments are capped, the state tax rate can still be increased as it is still set by the legislature every cycle, and the local levies are set at the county level. Just one more example of government making tax systems so complicated that average citizens have no idea how they work.
By FightOrFlight on 11-13-09
A fair sales tax law is one that would raise the money needed to run Montana government. At the same time, a fair sales tax law would provide total tax relief for residential property owners in form of a Homestead Act. Plus it should provide increased relief for struggling Montana businesses, (including agriculture) and all those providing goods, services and jobs to our state and local economies.
Private property owners in Montana, (whether they are residential, commercial or industrial) pay the bulk of the taxes to make Montana government run. Sure, we have income tax, gas tax, cigarette tax and liquor tax adding a portion to run our state government, but the big bucks to run Montana come from taxes on private property.
Montanans pay more than $708 million in property taxes every year. There are only 500,000 wage earners in Montana but Montana has millions of tourists flow through our state every year.
There are twenty times more tourists who visit than residents who live here; and the tourists have paid zero. Taxing the tourists by a sales tax for what they spend in Montana would bring in $75 million at four percent and $150 million at eight percent sales tax rate.
Montana’s gross state product in 2000 was $19.8 Billion in sales of goods and services. A four percent sales tax would put $792 million into the government coffers; $90 million more than the current property tax produces.
An eight percent sales tax would completely replace Montana’s 2000 State tax revenues of $1.4 billion dollars.
Understand that we could eliminate residential taxes, giving property owners the sovereignty of never being slaves to the state again. With a Homestead Act, we would guarantee this. Sales tax all of sudden makes a huge positive impact on the security of our residents; especially our seniors and first time home buyers.
But what if you are a renter? Your property tax equivalent is defined to be 15% of the gross rent paid during the tax year. If your rent is $600 a month, you really are paying $1050 a year in property tax to your landlord, who in turn is paying that money to the state.
If there “was” a sales tax, (and it applied to rentals), you would pay somewhere between 4% and 8% maximum. This would put $500 back in a rent payers’ pocket.
With a sales tax, we could cut business and industrial property taxes in half. This would make Montana one hundred percent more lucrative to attract the small, medium and high-tech businesses we need to put our population to work with more, better and higher paying jobs.
By FightOrFlight on 11-13-09
Montana only has six percent of the total jobs in manufacturing but twenty percent of the jobs are in the bureaucracy of government of some type. The other 75% of jobs in Montana are held by farmers, ranchers and small and medium businesses.
If we reduce the cost of doing business in Montana, and provide a secure from government Homestead for every Montanan who wants to own a home, would make Montana one of the best choices for quality of life, environment and work place choice for generations to come.
And as a bonus, keep the coal taxes we collect and add it in a giant bonus. Use it to pay our teachers, public service employees and law enforcement people a wage commensurate with the rest of the nation .
Now we have to convince yourself and your representatives.
The views expressed in the comments section do not reflect those of the Beacon.