As you see people with a clipboard collecting signatures recently, there’s a chance one of them is in support of CI-134. This constitutional ballot initiative is currently in its petition phase, meaning it needs enough signatures to qualify for the November ballot. Before you put your name on it, here’s what you should know.
CI-134 would amend the Montana Constitution to do three things at once: cap local government property tax growth at 2 percent per parcel per year, immediately reset residential property tax levels to whichever year between 2024 and 2026 was lowest for each individual parcel, and raise the bar for passing local voted levies from a majority of those who vote to a majority of all registered voters in the jurisdiction.
Its backers claim it will fix Montana’s property tax problem. But independent analysis suggests the picture is considerably more complicated.
The most immediate consequence of CI-134 would be felt by local governments. According to the nonpartisan Montana Budget and Policy Center, this portion of CI-134 would immediately reduce local government property tax revenue by nearly $200 million across the state, an average 15 percent cut in local government property tax revenue. In some areas of the state, local governments would see an upwards of 30 percent immediate cut in property tax revenue, forcing local governments to cut their budgets for fire, police, parks, and other essential services.
That’s not an abstract budget number. In practical terms, it means the services funded by your property taxes today, including fire protection, road maintenance, libraries, and parks, could face deep, immediate cuts with no mechanism to replace that revenue.
The petition gatherers will likely pitch this as property tax relief for everyday Montanans. But the evidence suggests most homeowners wouldn’t see meaningful benefit. In 2025, 80 percent of residential property owners saw lower property taxes than in 2024, and a large percentage of owner-occupied residences will see an even further rate cut in 2026. Thus, for most Montana homeowners, this “reset” does nothing.
The design of the reset provision favors a very different kind of property owner. By resetting to the lower of the past three years, the properties that stand to benefit are non-owner-occupied properties, especially those valued over $2.2 million. In other words, the homeowners being asked to sign the petition are largely not the ones who would benefit most from it.
It’s also worth knowing who is funding the signature-gathering effort itself. Out-of-state millionaires appear to be bankrolling the initiative with paid signature gatherers across the state.
The third piece of CI-134 is easy to overlook but has lasting consequences. Under current Montana law, if a community wants to pass a levy for a fire truck, a school facility, or emergency services, a majority of the people who actually vote decides it. CI-134 would change that threshold to require a majority of all registered voters in the jurisdiction, regardless of whether they participate. In practice, this makes it far harder for local governments and potentially school districts to ask voters for help, even when the need is urgent and the community supports it.
CI-134 would essentially create two entirely separate property tax systems: one for schools and the state, and one for local governments. While it claims to exempt public school levies, analysts note that restructuring the property tax system this fundamentally would almost certainly ripple into school funding in ways that are difficult to predict. The Legislature will be faced with the immediate cut of nearly $200 million to local public services, putting even greater pressure on the state to cover essential services while also meeting the needs of public schools.
If a signature gatherer approaches you, you have every right to ask questions and take time to research before deciding. A few worth considering: Who benefits most from this change? Who is paying the people gathering these signatures, and where is that money coming from? And what happens to local fire protection, road crews, and school funding when nearly $200 million disappears from local budgets overnight?
Signing a petition to place a measure on the ballot isn’t the same as voting for it, but it is a decision that shapes what Montanans will be asked to vote on in November. The more you know going in, the better.
For the full analysis, read the Montana Budget and Policy Center’s report at montanabudget.org
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