Is the City of Billings About to Bust a Cap on Taxpayers?

Is the City of Billings about to bust a cap on taxpayers? Plus, here's why this question matters to the rest of the state- which is SCREAMING for property tax relief.

Why This Matters: A month or so ago it looked like Democrats, Republicans and the Governor all agreed on the big picture- delivering property tax relief in the form of a Homestead exemption for Montana residents. Now, everything seems to be up in the air, with no single proposal appearing to have traction.

Last week, I asked House Minority Whip Jonathan Karlen (D-Missoula) what was up with property tax relief, and he mentioned one snag: the City of Billings is claiming that if property taxes are lowered, they would see a $7 million shortfall in their budget and would have to fire cops and firefighters. I said on the radio that that argument is absurd, and that the state legislature shouldn't let the City of Billings hold property tax relief hostage for the rest of the state.

The Concern for Billings Residents: Taxpayers in Billings were worried that the City of Billings would bust a cap on them, and get the state to remove the cap on city property taxes that is in the city's charter. The city would then raise taxes- even if the state lowers property taxes- if the cap were to be removed.

A Roadblock Removed? I spoke with Billings City Councilmember Jennifer Owen on Tuesday morning, and she says a short term fix has now been identified. She also anticipates the city to receive more revenue very soon due to property reappraisals that take place this year.

Full audio can be found in the 2nd half of the below podcast.