Legislative Notes
Support fair property taxes
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No taxes can be devised which are not more or less inconvenient and unpleasant. — George Washington
Part of my focus over the past legislative session was to provide meaningful property tax relief for Montanans who live and work in our communities, while ensuring the tax system treats all property owners fairly and transparently.
I supported reforms like House Bill (HB) 231 and Senate Bill (SB) 542, which reduce the property tax burden on Montana residents by offering a lower tax rate on owner-occupied homes and long-term rentals. These changes are designed to help people who live in their homes year-round — not those who own property in Montana but reside elsewhere or use residential property for commercial activity. No surprises – I campaigned on it.
Short-term rentals, many of which are owned by out-of-state investors, currently benefit from the same property tax rates as the homes Montanans live in. Yet, these rentals are in direct competition with commercial lodging businesses. By increasing the tax rate for short-term rentals to better align with hotels, motels, and campgrounds, we’re applying a consistent standard that reflects their business use. This supports a more free-market approach, where the government doesn’t pick winners and losers in the lodging industry.
The reforms we passed include clear eligibility requirements. Property tax relief is available to those who occupy their homes as a primary residence for at least seven months each year. Long-term rental properties are also eligible.
Opponents of this reform, predominantly the Montana Freedom Caucus, objected to these changes. They argued that shifting tax policy in this way was unfair or overly complicated. But their proposed alternative in SB 90—diverting revenue that buys down income taxes to offset local property taxes—would have created a permanent subsidy for non-resident property owners who don’t pay Montana income taxes. That approach undermines efforts to reduce state income taxes and is not fiscally sustainable.
I understand why some legislators oppose reforms that directly impact their personal financial interests and those of their out-of-state friends, like short-term rentals and vacation homes. There are many words to describe using political power to further you and your friends’ financial interests. Principled, conservative, and free-market are not among them.
This is about setting priorities. Montana taxpayers should not be asked to subsidize the tax obligations of people who live in other states but own second homes here, or to provide an unfair tax advantage to short-term rentals competing with the rest of the hospitality industry. As your Representative, my responsibility is to Montana residents, not to out-of-state property investors.
Ultimately, these reforms strike a balance: protecting homeowners, ensuring fairness in the tax system, and keeping Montana on a path toward long-term fiscal responsibility. That’s the kind of conservative policy I believe in—limited government, fair taxation, and putting Montanans first.
Brad Barker
Representative
House District 55
