WEB EXTRA Rep. Janna Taylor weekly column
In Lake County, only 7 percent of residential properties have a lower value than the last reappraisal six years ago. That means that 93 percent have increase value. Of that, about 75 percent have values that increased more than 40 percent.
That does not mean that your property taxes will increase 40 percent. This is a simplification, but a homestead deduction of 30 percent is removed from the appraised value. Then that number is multiplied by about .003 and then again by the number of mills.
Yes, it is very complicated. The bottom line is that the governor has stated that the total amount collected in the state will not increase. Well, many counties have a lot more properties that decreased in value than we do.
We have a sub-committee studying the reappraisals and potential mitigation. We tend to like income taxes because they increase as income increases. That doesn’t happen with property taxes. You owe them even if you lose your job.
My property tax freeze for senior citizens would need a constitutional amendment. Representative Nooney (R-Missoula) has a more efficient plan to help seniors in House Bill 341. It’s complicated, but basically reduces property taxes for seniors by 25 percent.
Going door-to-door, I came to many beautiful houses that were owned by residents of one of the seven states that have no income tax: Wyoming, Washington, South Dakota, Alaska, Nevada, Florida and Texas. They pay no Montana income tax, but like you, they want lower property taxes.
Speaking of taxes, in the state of the state address last week, Governor Schweitzer said we should tax oil production by an extra $1 per barrel. That would especially hurt small producers and will not stop the oil rigs from moving to North Dakota.
Conversely, he also indicated that he would be willing to support reductions to the business equipment tax. This would help our businesses compete with those in our neighboring states.
The business equipment tax punishes people who are trying to create jobs. We need jobs that pay well to keep young families in our state.
After the governor gave his state of the state address, Senate President Bob Story (R-Park City) gave his response. He took the opportunity to insist that the government be accountable to the people.
He said as we spend any federal stimulus money that comes to Montana, we need to let a group of private citizens, local government officials and legislators oversee it.
I believe that government belongs to the people, and the process should be completely open. Let’s put the state checkbook online.
Although state employees negotiated no raise in salary, they will receive an 8 percent increase in benefits. And those that are paid less than $45,000 per year will get a $450 bonus. This will cost us $32 million dollars.
Representative Hawk (R-Florence) said that the average state employee earns $36,000 per year. His average constituent earns $25,000 per years. That means that 30 people need to pay state taxes to support one state employee.
We have great state workers, but in this economic downturn, when so many of our neighbors are losing their jobs and even their homes, it’s time for the state to tighten its belt.
Thank you for all the questions, comments and opinions. I never forget that I work for you. Leave me a message at 406-444-4800, write Representative Janna Taylor, Capitol Building, PO Box 200400, Helena, MT 59620-0400, or e-mail me at jannataylot@montana.com.