I reported last week on Constitutional Initiative-105, a ballot measure backed by real estate and business groups that would prevent the Legislature or any municipality from instituting a Real Estate Transfer Tax, which is basically a tax that can be applied to sales, inheritances or like-kind exchanges of property, and is usually imposed at the time of closing, along with other taxes or fees.
This week the state’s largest labor union, the MEA-MFT came out against the measure, calling it premature, unnecessary and questioning the integrity of signature-gathering in support of the measure.
“CI-105 would prohibit a tax that does not exist. It would embed that prohibition in Montana’s state constitution,” said MEA-MFT President Eric Feaver in a news release. “It is at root an anti-government measure.”
Here’s the full MEA-MFT release:
Members of Montana’s largest union vote to oppose CI-105
Concerns about reports of deception in signature gathering noted250 delegates, representing 18,000 MEA-MFT members across Montana, voted to oppose Constitutional Initiative 105 (CI-105).
The vote took place at MEA-MFT’s Representative Assembly in Billings March 28.
MEA-MFT represents 18,000 Montana K-12 teachers and school support staff, higher education faculty, public employees, Head Start, and health care employees. Local MEA-MFT members elect delegates to the Representative Assembly each year.
MEA-MFT Representative Assembly delegates called CI-105 premature and unnecessary and noted reports of potential fraud and deception in the signature gathering process.
“CI-105 would prohibit a tax that does not exist. It would embed that prohibition in Montana’s state constitution,” said MEA-MFT President Eric Feaver. “It is at root an anti-government measure.”
CI-105 would constitutionally prohibit a real estate transfer tax. CI-105 could also potentially prevent local governments and public schools from using local impact fees to cover the costs of new subdivisions and student enrollment growth.
The Montana Association of Realtors is the chief group backing CI-105. “We are surprised to see the Realtors pushing a measure like this,” Feaver said. “They are playing right into the hands of right-wing, anti-government groups that have worked for years to cripple Montana’s public services by amending our state constitution through ballot initiatives.”
“Demonizing government and taxes hurts us all. Taxes are the dues we pay to live in a civilized society.”
Feaver noted that as the governor builds his proposed budget for the next biennium, he is considering a 4% cut in state personnel services and a freeze or reduction in state funding of public schools and higher education.
“If enacted, these cuts will hurt Montana’s people,” he said. “A 1% realty transfer tax, if one existed, could raise as much as $28 million annually. $28 million in new revenue from any tax would help preserve quality public schools and other necessary public programs and services. It is terribly short-sighted to permanently remove any revenue tool from the legislative toolbox.”
Concerns about fraud: For the past several weeks, signature gatherers have stationed themselves in parking lots and public areas across the state, gathering signatures to qualify CI-105 for the November ballot. Commissioner of Political Practices Dennis Unsworth has reported receiving numerous complaints about fraud and deception.
“I have heard reports of paid signature gatherers who misrepresent what CI-105 is all about. Apparently, they will say anything to get people to sign their petitions. Some signature gatherers are from out of state, which is against Montana state law,” said Terry Minow, MEA-MFT Political Director.
And some signature gatherers have been reported to claim, fraudulently, that CI-105 abolishes the “inheritance tax,” which, like the real estate transfer tax, does not exist in Montana.
“Too many Montana citizens sign petitions without reading them carefully and without thinking through short- and long-term ramifications,” Feaver said.
“We urge folks to use caution with any petition. Ask questions. Make sure the signature gatherer properly identifies himself or herself, shows you the actual initiative, and accurately explains what it would do.”