Legislators call for special session

The Montana Freedom Caucus (MFC) has called for a special legislative session to address tax concerns. MFC consists of 21 Republican legislators, including Senator Bob Brown and Representative Paul Fielder, both of Thompson Falls.

Earlier this year, the Montana Department of Revenue argued that counties should be collecting 95 mills in a state school tax, though several counties. The Montana Association of Counties (MACo) in October filed a lawsuit on behalf of Montana counties seeking "to clarify whether the State is subject to the same statute that requires counties to levy fewer mills due to increased property values, which in turn limits their property tax increases. MACo asserts the State is also subject to this law and must adjust their school equalization mill rates accordingly, which would be 77.9 mills this year," according to a MACo press release. Sanders County Commissioners signed a resolution asking MACo to represent them in the action as well, and Sanders County taxpayers were assessed the recommended 77.9 mills on 2023 property taxes. Sanders County Treasurer said MACo helped guide counties and a majority of counties decided to reduce the state school levy as a reduction to the taxpayers because of the higher property values assessed by the Department of Revenue.

The Supreme Court last week sided with the state Department of Revenue and ruled that counties must charge the full 95 mills. Wadsworth said the county is waiting to hear from the state on how to handle the Supreme Court ruling and the additional taxes. On tax bills sent this fall, the county added the following statement: "State School mill levy was reduced from 95 mills to 77.90 mills for 2023. If a court decides this was in error you MAY receive a supplemental tax bill for the difference." Wadsworth added that the additional mills add up to about $800,000 in taxes that the county didn't collect, "so it's a significant amount."

Fielder said the MFC is recommending a compromise of 85 mills. "The Department of Revenue said we only need 77.9 mills to run the government. They are collecting extra mills and banking it," Fielder expressed. He said the proposed 85 mills is a compromise between the 95 and 77.9. "It still allows for unexpected expenses that might come along," Fielder added.

Fielder, chair or the taxation committee in the legislature, said the state school tax levy amount is set by the legislature "so we can adjust those."

"We also want to look at if we collected more in taxes that the state should have to meet House Bill 2 (the budget bill for the next biennium) and that we return that money to the citizens," Fielder continued. "If the government doesn't need it then it should stay in the pocket of the taxpayers.

The MFC legislators are calling for a special session on January 15. Fielder said the MFC is a select group and that legislators are invited to join based on voting record. He said the special session is meant to be focused and last 1-2 days. "I hope it will happen," he stated. "It speeds up the process for the citizens to be able to get tax relief."

The Secretary of State will send ballots to Montana's 150 state senators and representatives. A majority must vote in favor of having a special legislative session to deal with the tax issue, Fielder said.