Representative Marta Bertoglio Update - Senate Bill 442 and the Supplemental Property Tax Bill

Politics can be a messy business, and the timing of our supplemental tax bill, with its paragraph blaming the Governor's office and Legislature during an election cycle, along with the timing of the veto override of SB 442, concerns me. While I try to avoid the "politics" in politics, I feel compelled to address these issues.

To begin, I would like to express my reasons for supporting the Governor's veto of Senate Bill 442, a bill that would have allowed marijuana tax revenue to be used for county road maintenance. During the legislative session, several bills were introduced to reallocate marijuana tax revenue. However, none passed because legislators could not agree on the percentage allocation and where the funds should be distributed. I sponsored a bill to change the disbursement of marijuana tax revenue to address issues related to the legalization of marijuana, primarily focusing on law enforcement, veterans, mental health, and drug treatment. Although SB 442 was thoughtfully written and well-intentioned, it does not make sense in the funding allocation. Counties that did not vote for marijuana legalization still receive funding. This bill also mainly benefits counties in Northeastern Montana. Furthermore, the bill transfers money from counties that generate tax revenue to counties that do not. The Legislative Office of Research and Policy provides a great analysis with a detailed bill breakdown.

Additionally, the unexpected motion to end the legislative session in the Senate also killed bills that could have positively impacted Montanans. Unfortunately, SB 442 was one of those bills as well. As a result, I do not believe SB 442 should be treated differently from the other bills that died because of the motion to end the session.

I believe the Supreme Court's decision to direct the Secretary of State to poll legislators on a bill stuck in the legislative process crossed a line. All branches of government should respect the separation of powers, and interference by the Supreme Court in the legislative process could set a negative precedent for future legislative sessions.

As the next legislative session is less than a year away, I hope we can find an agreeable, nonpolitical solution to distribute marijuana tax revenue to help Montanans. The solution should protect our Montana way of life and especially our veterans, public safety, drug treatment, mental health, and a way to drive down taxes on Montanans.

As for the supplemental tax bill, it is important to remember that the supplemental tax bill shows the total amount due for the second half of your taxes. The additional amount is on the line labeled "MT Supreme Court Order" at the top left of the tax bill. The supplemental amount accounts for the 95 mills for the school equalization assessment the state has collected for years. The 95 mills are collected annually due to the State losing a lawsuit for not fulfilling its Constitutional obligation to provide equal education opportunities for all students in the state. The 95 mills are collected at the state level and then distributed to schools across the state based on a formula that includes student enrollment. Reducing the 95 mills to 77.9 mills due to the schools is not a tax reduction. It would have been a tax shift from large corporations and out-of-state homeowners who pay property taxes to Montana residents and income taxpayers to compensate for the cost. This shift would have given Montana residents a smaller property tax reduction this year but increased taxes to make up the difference that schools didn't receive. It could also increase locally assessed property taxes to make up the difference in the future.

I acknowledge that work needs to be done in the next session to address rising property taxes. After receiving my property tax bill, I am especially grateful for the $1,350 in property tax rebates the Legislature provides taxpayers to mitigate the increase.

Lastly, having previously served on a school board, I have firsthand experience of the budget process and know that our superintendents work tirelessly to stretch the money they receive to maximize our students' educational opportunities. Unfortunately, our public schools were stuck in the middle of the state and county's disagreement on the 95 mills. Despite the differences in opinion, I always appreciate the work of our locally elected officials and value their input on ways to serve our citizens.

Thank you for the opportunity to represent our great district. Please contact me with feedback at marta.bertoglio@legmt.gov.