Lawmakers listen to lobbyists

The years 2002 to 2008 were great times in the real estate market. Construction was up, homes sold and were worth record highs. Not true today, as worldwide market collapse hit the real estate industry hard. This is bad news for homeowners and local businesses when it comes to property taxes, as the slump puts our market values far below their assessed value.

Pundits tell us that reappraisal and property tax hikes are a result of Eastern Montana versus Western Montana. But when we look at the vote tally on the final mitigation bill requested by the Joint Senate Committee on Reappraisal, we see a starkly different story.

I know the story all too well, as I carried this bill for the Senate Committee, but in the end voted against it. My repeated warnings of the bad consequences for homeowners and small businesses, particularly in growth regions, were ignored. So I voted against the bill with my name on it. I also carried many tax bills to cap the growth of homeowner taxes, all of which were killed.

Every Senate Republican except one voted for this bad law. Every House Republican except six joined the fray. Compare that with 37 Democrats joining me by voting no in the House and 11 Democrats voting no in the Senate.

Republicans ignored our warnings that the haphazard strategy would not work. They even ignored warnings from within their own party about the impact to heritage homeowners, particularly the elderly. Special interest lobbyists wrongly said it would work, and the Republicans believed them.

We should thank Republicans, as we pay an average 15 percent more in property taxes next month, some much more. Suddenly, as appraisals are hitting homeowner mailboxes, Republicans flip-flopped from saying the bill was fair to saying that the numbers were skewed.

I came home from Helena last spring knowing the bill with my name on it, that I could not support, was a colossal failure. The Republicans did not listen to anyone but the lobbyists, even as the fiscal note was clear — the bill would increase taxes dramatically for many.

The Republican Senate hijacked the House version of the final mitigation bill and exempted only 85 percent of the effect of growth over the biennium. The Senate amended the House bill, which mitigated 100 percent of reappraisal, and forced homeowners and downtown businesses to pay $6 million more in taxes over the biennium and another $6 million over the cycle.

Senate Republicans removed all the assistance to the elderly, disabled, poor homeowners and renters. Then Senate Republicans added a new tax on homes worth more that $1.5 million. No wonder elderly and lakeshore homeowners are hopping mad.

As a result, 60 percent of Montana homeowners will see their property taxes increase up to $200 over last year, some much higher. This is bad news during our difficult economic times.

Republicans legislators have the ability in numbers, 77 seats, to call a special session of the legislature to fix their mess. Sadly, they offer no upfront solutions. The fix, though, is simple, but it would require a bit of spine from Republican leadership and tax chairmen to stand against the tide of special-interest lobbyists.

The solutions were all presented in the 2009 Session — capping a homeowner's tax growth to no more than 3 percent, extending reappraisal to guarantee no more than 5 percent tax growth for businesses and homeowners, establishing lower rates for people who live in their homes and pay more than $100 in increased taxes, and aggressively expanding assistance to elderly, poor and disabled homeowners and renters.

Over the years, the Montana Association of Realtors adamantly opposed our attempts to cap homeowner's taxes to inflationary growth, to reappraise only upon the sale of a home, and to abate a portion of property taxes for homeowners whom file income taxes. Seems like lobbyists believe that if we stay put in our homes, it's bad for their industry.

"I think ultimately, it was a pretty darn good bill," Joe Roberts, a lobbyist for the Realtors, recently said, referring to the final product.

Basic math skills are necessary in business and needed in politics as we debate tax bills. An upfront and known $12 million tax increase is not a rounding error, no matter how many special-interest groups tell you otherwise. And a new tax on larger homes is simply a new tax.

A sales assessment ration will look at how valuations have changed and be presented to the 2011 Legislature, not nearly in time for the taxman. If folks have better solutions than those outlined, please pass them onward. A fairer tax system is in all our best interest.

Those who joined me locally in voting against this bad bill deserve sincere thanks — Sen. John Brueggeman, R-Polson, Rep. Bill Beck, R-Whitefish, Rep. Jon Sonju, R-Kalispell, Rep. Dee Brown, R-Columbia Falls, and Rep. Cheryl Steenson, D-Kalispell.

I wish more Republicans had listened to homeowners and local businesses and voted to help older citizens in high-growth areas. The people who laid the foundations for our great communities deserve to be able to live out their days in their homes and not to be sent to the "poor house" because suddenly their homes are worth more money than some made in their entire lives.

Citizen politicians would do much better by listening to homeowners and local businesses rather than well-funded special-interest groups intent on preserving their own interest. And homeowners and small businesses should protect their wallets from a legislature intent on listening solely to special interests.

Rep. Mike Jopek is a Whitefish farmer and served in the 2005, 2007 and 2009 legislatures. He can be reached at mjopek@mt.gov or 250-1184.