During the midst of this holiday season, the legislative assembly is being asked to approve a special session to be held on Jan. 15. The following is my rationale for voting against this call right now.
The objectives, as stated by the nearly 20 legislators requesting this action, are to return a surplus collection of taxes, and to address high property taxes placing a burden on Montana’s residents. Thus far, there are four tax-related issues proposed for consideration. I’m not convinced that these can all be responsibly tackled during a special session. I am, however, absolutely in favor of returning revenue surpluses to taxpayers who contributed to these very surpluses. These are funds for which the legislature made no appropriation during the 68th Session.
The Revenue Interim legislative committee is currently focused on comprehensive property tax reform ahead of the 2025 Session. We are evaluating reforms that will pass muster with the Montana Constitution. We are examining the complexities of tax classifications, while paying close attention to our industries’ ability to remain in the state and continuing to provide jobs and to pay taxes. We’re also keeping an eye on government spending and expansion of services – the more we expand, the more tax dollars we need from our citizens.
I deliberated three key issues before submitting my vote about the Jan. 15 special session: 1) Would it better serve our purpose to delay holding a special session until after the April 15 tax return deadline; 2) What is the cost to hold a special session; and 3) How will we conduct a special session with the House Chamber experiencing some reconstruction, likely until mid-summer?
First, I believe that surplus dollars should be expeditiously returned to those who’ve paid those taxes. It perhaps would be worthwhile to have an in-depth discussion about the likelihood of convening a special session to fully consider total surpluses after the April 15th income tax deadline which will result in updated revenue projections.
Second, the cost of convening a special session is not negligible. In average circumstances, mobilization in preparing for this event is roughly $135,000, then an additional $75,000 per day. If there’s a call for pre-standing committee meetings ahead of Jan. 15, there’d be another cost of about $56,000 per day.
Finally, the House Chamber, which accommodates 100 elected representatives, staff and the public, is presently unusable due to ongoing reconstruction until mid-summer. Legislative staff would have to establish make-shift meeting and voting locations, along with coordinating information technology and services for voting systems and audio/visual operations. These gargantuan efforts would require that legislative IT staff redirect their routine efforts for two weeks to accommodate this proposed special session.
Again, we have a number of tax reforms being considered during this interim period. Most legislators have heard from their neighbors about skyrocketing property tax bills this year. These are challenges we are being asked to address. The Revenue Interim Committee is currently discussing options. The governor’s office has called for a task force to examine options. I do indeed support fiscal prudence by returning surpluses to Montanans, rather than further buttressing state coffers in these economically challenging times.
My overall goal remains - to minimize government and taxation burdens, while promoting the success of Montana’s education, our economy and our rule of law. I continue to work for the improvement and preservation of our Montana way of life. It remains my honor and privilege to serve the voters of Senate District 40 and our state. As always, please feel free to contact me at becky.beard@legmt.gov. Thank you.
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