The cost of living in America is rapidly increasing, making it difficult for citizens to adjust. A 68-year-old Montana resident named Kurt spoke about his property taxes in a viral TikTok by Ryan Busse, a Democratic candidate for the 2024 Montana governor elections. Kurt mentions he’s on social security and works year-round to pay his property taxes on his family home. In just a few years, his property taxes have increased 893% from $895 to nearly $8,000. Kurt says there should be a moratorium on what senior Montanans pay.
Buying a house is a significant milestone in people’s lives. Kurt raised his children in his current home and keeps working so they can get married there. At the end of the video, he says, “We can’t take this anymore. This was a great place and still is, but the people that made it great can't afford to live here anymore.” The fact that Kurt needs to continue working at 68 years old to keep his own house speaks to the unfortunate circumstances many Americans endure. So, let’s talk about what’s going on in Montana.
Why are property taxes so high?
According to an article by Daily Montanan, Montana has historically adjusted tax rates during significant economic shifts. These adjustments are made through bipartisan efforts to balance taxes for all property classes. However, in 2023, the Montana Legislature chose not to adjust the 1.35% tax rate on residential properties. This caused the residential property taxes to skyrocket while other taxable properties received a tax reduction. The increase then caused a massive tax increase for renters and homeowners like Kurt.
In short, this decision created a 5.4% net increase in the total tax burden, and residential property owners were billed 185% of the increased burden, making it much harder for homeowners and renters to pay their bills.
What can you do?
Rising residential property taxes can be overwhelming- here are some things to consider when taxes are too much:
- Appeal your property investment to local authorities
- See if your area has installed payment options
- Research exemptions and deductions on property taxes
- Utilize tax deferral programs
- Buy a smaller house or relocate with less taxes
- Invest in out-of-state real estate
Investing in out-of-state properties is a great way to make extra money to pay your residential property taxes. With time and effort, you could have multiple rental properties that generate enough income to make tax season less stressful. If you’re interested in learning how to invest out-of-state, tune into my show, Black Real Estate Dialogue. You can watch on YouTube and listen on Apple Podcasts or Spotify.
Freebies
Free Out of State Investing Training- https://www.outofstatemoney.com/
8 Steps to Buying Out of State Properties- https://www.outofstatemoney.com/long-distance-investing-guide
The Remote Landlord’s Toolkit- https://www.outofstatemoney.com/remotelandlordtoolkit
The Creative Financing Playbook- https://www.outofstatemoney.com/creativefinancingplaybook
1 comment
Montana needs my Modern Government Program to reverse this outrageous property tax increase!