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The real property tax reduction

| August 3, 2006 11:00 PM

We have come to expect half-truths and spins early in a national campaign, but Mike Jopek is starting pretty early for a Montana legislator. The Republican Handshake with Montana promised a property tax decrease months before the Democrat's Square Deal.

The main difference is that the Republican plan is permanent. The Democrats don't need to worry about a permanent property tax break. Didn't JFK and Ronald Reagan both say that when you let people keep their hard-earned money, the economy is stimulated?

It sure worked here. Tax cuts during the years the Republicans were making the decisions led to the 2005 state surplus of $300 million and now to the estimated 2007 surplus of $500 million — money we can use to increase funding for schools and services.

By the way, I don't like to call the money surplus. The money belongs to the taxpayers, not the state. If the state collects more money than it needs, all excess should be returned to the taxpayer.

Everyone knows that Montana is a state of small businesses. Our governor says that small business is the engine that drives Montana economy. In fact, 97.8 percent of Montana employers are small-business owners.

So, why not give any business that owns property the same tax reduction? Do we want to drive all employers, farmers and ranchers in our area out of business?

Jopek even uses the word "redistributes." He wants to redistribute the wealth — he says $100 million from the oil and gas companies. Our $500 million surplus doesn't even include this much oil and gas tax money.

Most of the state money is from income tax, 45 percent, then property taxes, 18 percent, and then less than 10 percent from oil and gas production. And we know that when the government taxes any business, we, the consumers, pay.

Do not be impressed by the 13,000 small businesses that the Democrats removed from the tax rolls. The personal property tax that businesses pay was set to go to zero, so that Montana could compete with our neighboring states. The Democrats stopped that during the last session.

I visited a small, clean-tech company in our area that employs about 25 people, and they are being lobbied to move to three other states by promises of build-outs and lower taxes. Their high-tech equipment costs millions, and Montana taxes that. Of course, we give deals to movie companies based in California, but not to these small Montana businesses.

The 13,000 businesses that the Democrats did allow to zero out are those that have less than $20,000 in property, like a lawyer's offices or an insurance office. Every tractor costs more than $20,000. You know the costs of equipment that printing companies, tool and die companies, and even auto repair shops have. Why help other states recruit our businesses?

Whenever you hear about all the wonderful things that state government does with your money, remember, it was the Republican policies that provided the economic upturn. Now, let's get more clean, high-tech, good-paying jobs so that our young families can stay here.

Montana has lost more than 20,000 students in K-12 since 1996. That means young families are leaving. Republicans will continue to promote good jobs to help our families.

By the way, the March Republican Handshake with Montana also includes fully-funded water adjudication. Republicans tried to get this done during the special session, but the governor limited legislation. That's another of our plans that the Square Deal copies, but they want to exclude large water-payers. Some of those are our rural schools and communities.

Janna Taylor, R-Proctor, represents House District 11 in the Montana Legislature.