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[1]. 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?
Thank you for reading the Bryan Ellis Real Estate Letter! Your comments and questions are welcomed below.
[1] http://billingsgazette.com/news/state-and-regional/montana/article_d381f2ac-c3bb-11df-902e-001cc4c03286.html
Missouri is also doing this, taking proactive action to stop the transfer tax.
Every state should have a law against transfer taxes of every kind.
Union is worried about a revenue stream? The unions should be more concerned about living inside of the budget and finding ways of reducing the budgets instead. A revenue stream is something one generates through production of a product, a theft stream is what the union is really talking about protecting!
Good for Montana and good for Missouri!!!!
Anytime we cut back on taxes is a good thing. Proposition 13 in California saved people a lot of money when the real estate boom took off, and saves them a lot of money now that can be better used to buy goods and services. Now if we can just make sure the Bush tax cuts stay in force !!! Go Montana !!!
Of course Montana has less than 1M people in the whole state. Guess it can work there. In more populated areas, not so easy.
This simplistic meme of “taxes – bad” is so tired. Though there is much wrong with how the money is spent on both “liberal” and “conservative” pet expenses….
“Taxes are what we pay for civilized society”
– Oliver Wendell Holmes, Jr Supreme Court Justice 1902-1932
Funny how the same people that constantly whine about “guvmint”, “socialism”, and the evil of taxes never criticize the $3 TRILLION of national treasure that has been wasted on W. Bush’s wars; especially the unnecessary and illegal war in Iraq.
Seems the righties only protest when the money is spent on things they DON’T agree with. The hypocrisy is astounding.
I freely admit there is a problem with welfare in this country and that significant education dollars are misspent for example.
Can righties admit that corporate welfare and the military budget are out of control?
Without honest dialogue on BOTH sides, we are going to have a long, hard and unnecessary struggle… while China eats our lunch.
Fair enough. Too much money being spent. But libs nearly always point to national security as the first place that money should be saved. Foolishness. That’s clearly in the mandate of the Constitution. But what about the GM takeover? Not constitutional. What about cash for clunkers? Not constitutional. What about the health care industry takeover? ANTI-constitutional. So, you’re right: We should be spending less money – that’s part of what the Tea Party people are arguing for… but the cuts should come FIRST from things our government has no business being involved in. — Bryan Ellis
This was tried in Washington state. Any new tax had to be voted on. This did pass, however our Governor just by ignored it and added new taxes anyway. They need to have some kind of protection that the Governor cannot have this kind of power.
Excellent Article. Makes me want to move to Montanna.
I think these type of laws are necessary. CAFA, I think everyone would agree that taxes are a necessary “evil” and that government spending is out of control. However, just as your tired of the right wing mantra about taxes… I’m exceedingly tired of the lefty’s seemingly advocating that we trade our nations security, while they fund more failed programs that only serve to increase the power of the politcal elite and everyone else’s dependence on the government. I for one don’t think the government should be running around wiping our butts like we’re a bunch of two year olds.
As for Montana, it’s bad enough that I read that Obamacare includes a 3%(+/-) sales tax on all property sales… where do we draw the line. I think Montana has the right idea. Property owners shouldn’t be penalized for there decision to sell their property. These type of taxes only serve to further drive a wedge between the haves and have nots.
We will be in the process of selling our home of 30 years within the next few months.
IF the house sells I’m confused. What types of Montana state taxes apply?
What’s the percentage on gain?
I understand the fed capital gain tax is on any amount over _________________?
I haven’t kept up on this at all.
Can someone respond to this query – I’d appreciate it.
Thank you
Karen Olson