Montana state Constitutional Initiative 105 would prohibit state and local governments from passing new taxes on real estate sales and trades – ever. While Montana does not currently have such a tax anyway, the Montana Association of Realtors is concerned that growing economic problems throughout the country could ultimately induce their state legislature to try to raise funds by initiating these types of taxes, and they want to put a stop to that before it ever gets started. It has taken a lot of work for the MAR to get this initiative on November’s ballot and, if it passes, it will take even more work to revoke it in order for the state legislature or local governments to ever be able to levy real estate transfer taxes, which come into play when property is bought and sold.
Since 2001, eight bills have been introduced – and defeated – in the Montana legislature that attempted to levy real estate taxes. MAR believes this amendment is necessary so that the legislature does not just keep trying to slip these taxes through until one day it succeeds. MEA-MFT, a union of government workers, opposes the ban on the real estate tax because “I don’t think we should erase any potential [revenue] stream ever,” according to their leader, Eric Feaver.
Do you think that this is a good amendment? Would it make you more likely to invest in real estate in Montana?
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