Governor Gianforte featured at MSPC Helena event

We were honored to have Montana Governor Greg Gianforte attend and address the crowd at our policy event in Helena on February 24. Governor Gianforte discussed his plans for the upcoming 2027 Legislative Session, noting that moving the Treasure State to a flat income tax and providing families with more education choice opportunities were among his top priorities. Here are some of his comments from the event:

https://www.youtube.com/watch?v=2vDnJe01gc4

Before the Governor's remarks, I outlined some of the reform opportunities MSPC believes lawmakers should consider next session. They include:

• The importance of moving to a flat income tax and adopting revenue triggers to improve the state's competitiveness. Montana is surrounded by two states without an income tax (Wyoming and South Dakota), one state with a lower flat tax (Idaho at 5.3%), and one state with a graduated rate topping out at 2.5% (North Dakota). This leaves Montana's graduated income tax top rate being the highest in the region, impacting the state's economic competitiveness. Once a state moves to a flat tax, revenue triggers could be authorized to further reduce income taxes when extraordinary revenue growth is available.

  
  

• Amending the constitution to require a legislative supermajority vote or voter approval to increase taxes. If there’s one thing Americans can still agree on, it’s that tax policy is one of the most consequential decisions our government makes, impacting the economy and family budgets. There is also general agreement that tax increases should be a last resort when budgeting and imposing them should not be taken lightly by policymakers. One way to ensure this occurs is by adding requirements to a state’s constitution that require a supermajority vote or voter approval to raise taxes. This type of taxpayer protection already exists in several states, but not in Montana. There are currently 17 states with some form of supermajority or voter approval requirements for tax increases. For example, Colorado requires voter approval of all tax increases and South Dakota requires a 2/3 legislative vote to raise taxes.

  
  

• Bringing more transparency to property taxes with Truth in Taxation. Utah was the first to adopt Truth in Taxation in 1985. Before moving forward with property tax increases, government officials in Utah need to first fill out a “Tax Increase Checklist” and comply with the “Tax Increase Requirements” details under Truth in Taxation. Utah’s Property Tax Division explains: “Property Tax increases require a Truth in Taxation process of public disclosure. Taxing entities are required to follow a series of date-specific steps, including notification to the county, newspaper advertisements, parcel-specific notices, and a public hearing, before adopting a property tax rate above a calculated certified tax rate."

  
  

• Creating a tax transparency website to remove the mystery around taxation. Montana’s Department of Revenue reports there are nearly 1,400 taxing districts in the state. This means the typical home and business could be subject to numerous taxing districts at the same time. Now imagine if you could go to a tax transparency website and enter your home or business address to quickly see all the taxing districts you are subject to, at what rates, and perhaps be provided an educational calculator on your total estimated tax liability based on where you live. This is the benefit of providing taxpayers with a tax transparency website to help make it clear which level of government is responsible for the taxes being imposed.

  
  

• Adopting the Public School Transparency Act to provide parents with standardized information about school district spending and outcomes. This simple step would help taxpayers and parents determine whether their local district has enough funds and whether it is properly spending the cash in the classroom. As part of this idea, all public school districts would be required, both on the first page of their budget and also on the front page of the district’s main website, to report six simple things: 1. Amount of total dollars (all funds – local, state, and federal) spent by the district that year; 2. Amount of total dollars spent per student, per year; 3. Amount and percentage of total dollars allocated to the average classroom; 4. Average administrator salary and benefits; 5. Average teacher salary and benefits; and 6. Ratio of administrators to teachers to students. Some schools may go further, reporting student outcomes, teacher retention rates, and more.

Rob Natelson, MSPC's Senior Fellow in Constitutional Jurisprudence, also talked about how, in 2030, Montana voters will decide whether to commission a new state constitutional convention. Rob has been writing a series for MSPC about the importance of Montana holding a constitutional convention to update its constitution.

We are grateful for the work Governor Gianforte continues to do to improve Montana's tax and regulatory climate while supporting robust education choice opportunities for families. MSPC looks forward to working with the Governor and lawmakers next year on these efforts.