Op-Ed: Don't Let Legislature Sell You on Sales Tax

We spend a lot of time debating a variety of different issues here at the Montana Legislature. However, many of our neighbors really just want us to address one thing: property taxes. With only 90 days to work every two years, it’s important for us to prioritize policies that the people of Montana sent us here to accomplish. There have been multiple proposals to lower property and income taxes, but few have made their way to the Governor’s desk, with only a handful of weeks left to go this session. So, what gives?

Sadly, it appears that all roads lead to a new sales tax in Montana. Proponents of a sales tax are poised to try to sneak in a new revenue stream under the guise of reducing property taxes.

The House Taxation Committee held hearings on a couple of proposed bills promising to reduce property taxes and fund education with a sales tax. According to nation-wide data, sales tax revenues are the least predictable. In boom times, a sales tax generates substantial revenue; in bust times, the revenue dries up. Although these House bills were tabled, another sales tax bill was introduced on April 1 – no “April Fools” – just two days before the deadline to transmit revenue bills.

Measures like these demonstrate how failing to reform our existing tax system now may lead to an even bigger tax system moving forward. Let’s be clear: the answer to our out-of-control tax-and-spend problem is not another tax.

Montana residents end up having more money sucked out of their pockets with a sales tax. Sure, tourists would leave some money behind, but the people who live here all year would be paying that tax all year, on top of property and income taxes. It truly is death by a thousand papercuts!

Our state is one of the few in this country that has managed to keep a balanced budget without a sales tax. Montanans are proud of that and should fight to keep it that way. If a sales tax is put to voters, I urge them not to give into the promise of lower property taxes. Once you grow government, it’s incredibly hard to shrink it, given the appetite for larger revenue streams.

They say that death and taxes are two of the only certainties in life, but a sales tax in Montana does not have to be a certainty.

My goal here at the legislature remains unchanged: to minimize government and tax burdens while promoting the success of Montana’s education, economy, and rule of law.

Supported by our staff and cohorts here at the Capitol, it is my honor and privilege to continue serving the voters of Senate District 38 and our state. Stay informed on our work through our official website, http://www.legmt.gov, and feel free to contact me personally at becky.beard@legmt.gov.