Montanans need real, permanent property tax relief. One of the clearest and most achievable property tax relief options available to the upcoming 2027 Legislature is to let the $35 million 6-Mill University Property Tax Levy expire. While the amount of tax relief would be relatively modest, this is a low-hanging-fruit win for property taxpayers that absolutely must be prioritized.
Some background: the 6-Mill Levy is a statewide property tax that funds the Montana University System (MUS). The tax currently generates around $35 million per year in dedicated, automatic funding for the MUS. This accounts for around 9–10% of total state funding for MUS, and only about 1% of MUS’s total operating budget. The 6-Mill Levy is periodically reauthorized by voters every 10 years (last time in 2018) and is currently scheduled to expire on December 31, 2028, unless the Legislature refers it back to voters for reauthorization.
I say let it expire. The voters approved the 6-Mill Levy as a temporary tax with an expiration date of December 31, 2028, for good reason. The 2027 Legislature just has to do one thing: NOTHING. The levy expires on its own unless the Legislature acts to renew it. They can choose not to send the 6-Mill Levy back to voters to reauthorize it, and it would be eliminated. No votes, no legislation required to accomplish this. This is a no-brainer.
Eliminating the 6-Mill levy would remove a property tax burden that has grown along with rising assessments and deliver around $35 million annually in direct property tax relief to homeowners, farmers, ranchers, and businesses alike.
Just as importantly, letting the 6-Mill Levy expire would end automatic dedicated spending for the universities every year regardless of budget needs. Reserving $35 million per year to the universities no matter what just reduces the incentive for them to prioritize resources and demonstrate results in return for taxpayer money. This is not good governance.
Instead of having an automatic, dedicated property tax, the universities should have to compete for funding through the normal appropriations process, just like every other state priority. This would return more control over the state budget to lawmakers, allowing them to better hold universities accountable for results and better balance priorities like tax relief and university funding against other state priorities.
Claims that ending the 6-Mill Levy would result in a university funding gap that must be backfilled by other state funding sources or tuition hikes are not accurate. The actual amount of state funding the universities receive is and should remain a decision made by the Legislature during the appropriations process.
The people’s elected representatives in the Legislature, not an automatic property tax, should decide the appropriate level of funding for universities within the bounds of a limited, conservative state budget.
Letting the 6-Mill University Property Tax Levy expire is a straightforward win for taxpayers and real fiscal responsibility. I hope the 2027 Montana Legislature makes this a priority.
Kendall Cotton is president and CEO of the Frontier Institute.