In a recent meeting of the Montana Legislature's House Appropriations Committee, lawmakers discussed House Bill 836, which aims to establish a property tax deferral program for lower-income seniors. This initiative seeks to alleviate the financial burden of rising property taxes on elderly homeowners, allowing them to remain in their homes without the fear of losing their properties due to tax increases.

The proposed program is designed as a home equity line of credit, enabling seniors aged 62 and older, who have lived in their homes for at least five years and have accumulated a minimum of 20% equity, to defer property tax payments. The bill also extends eligibility to active-duty military personnel, a point that sparked debate among committee members regarding the necessity of including younger service members who may not face the same financial challenges as seniors.

Proponents of the bill highlighted its potential benefits, noting that it would not create a tax shift among taxpayers or result in losses to state or local revenues. The program is structured to be self-sustaining, with loans secured by liens on the properties, ensuring that the state would recoup its investment upon the sale of the home or through the estate after the homeowner's passing.

The fiscal note initially estimated a need for $50 million to fund the program, but after further analysis, the sponsor indicated that $5 to $7 million would suffice for the first few years. This adjustment reflects a more conservative approach to funding, aiming to ensure the program's viability without overextending state resources.

Committee members raised questions about the program's structure, including the security of loans and the rationale for including active-duty military personnel. While some expressed skepticism about the inclusion of younger service members, the bill's sponsor defended the decision as a means to support all Montanans facing financial difficulties due to property tax increases.

As the committee concluded its discussions, the bill's sponsor emphasized the program's intent to provide a safety net for vulnerable populations, ensuring that seniors and military personnel can maintain their homes without undue financial strain. The committee's next steps will involve further deliberation on the bill, with potential amendments to refine its provisions and address concerns raised during the meeting.