TAX NEWS - June 2010

Montana Tax: State Democratic platform mum on subject of sales tax

How else can the state Democratic Party's rejection of a platform plank in opposition to any sales tax be explained?

While a few Democrats have supported some form of a sales tax over the years — most notably leaders of the state teachers union — the party has by and large opposed efforts to impose any kind of tax on the sale of goods and services in the Treasure State.

That's why it was a surprise Saturday when the party, at its convention in Billings to approve a platform and map a strategy for the next five months of campaigning, voted down a proposal made by a House candidate from Circle to "oppose any and all attempts at a statewide sales tax in the state."

Considering that voters have twice — first by a 70-30 margin, then 20 years later by a 75-25 margin — stomped sales tax proposals to oblivion, it would seem to be a no-brainer for a political party to declare itself on the side of that particular majority.

But the taxation plank put forward by a party committee was mute on the subject of a sales tax, a situation candidate Cody Drew hoped to rectify with his proposed amendment.

Without discussion, however, his proposal was soundly rejected.

"I was a little surprised," he said after the vote.

Some in attendance at the platform meeting said the proposal came up late in the day, when many delegates were out of the room. One said she would have voted for it had she been in the room.

All the same, it is true that party platforms often don't get to the point of giving a thumbs-up or thumbs-down to specific proposals, taxes or otherwise.

But this move is bound to raise a few eyebrows among the opposition, including tea party activists, appearing as it does to be a refusal to take a new tax off the table.

Considering that the upcoming legislative session is going to be dealing with some tough budget issues, we'd say refusing to rule out a sales tax is prudent.

As a leg on the state taxation stool, we've long felt that a sales tax is a far preferable to the property tax as a primary source of government revenue.

However, we've also long known that Montana voters aren't going to go for a sales tax. It's just about time for the state's every-20-years run at it, and looking at the trend over the last 40 years, we'd say it would be defeated by an 80-20 margin this time.