Property values are the basis for Montana’s property tax system, which has considerable budgetary significance in a state that operates without a sales tax.
The Montana Constitution, along with state law, requires that the state Department of Revenue periodically reappraise all properties within Montana’s borders. Tax year 2015 was the first time the reappraisal process occurred in a two-year cycle for residential, commercial, industrial, and agricultural property, instead of the previously used six-year cycle, which still applies to forestland. The current forestland cycle runs from 2015 to 2020.
This means landowners in Flathead County can expect a letter from the Revenue Department in the near future, if it hasn’t arrived already, detailing the new appraised value of their property for the 2017-2018 cycle, as well as estimating their property taxes based on the new valuations.
The department began mailing classification and appraisal notices to all owners of property other than forestland on June 19.
“We ask you to review the information thoroughly,” Mike Kadas, director of the Revenue Department, said in a prepared statement. “Although this is not a tax bill, it is important information that your county treasurer’s office will use when calculating your property tax bill.”
Scott Williams, manager of the department’s Region 1 in western Montana, said most people wait until their new property tax bill arrives before taking the next step in the process.
The bill usually arrives by Halloween, he said, and the first half is due by the end of November and the second half due by the end of May.
But property owners have 30 days to protest their appraisal notice from the department, Williams said. If property owners disagree with the value the department has determined, they can request an informal classification and appraisal review. This can be completed online at revenue.mt.gov/home/property/appraisal-notice.
Property owners can also protest by making a formal appeal directly to the county tax appeal board. This appeal also must occur within 30 days of the reappraisal notice from the state.
Williams said that while people may inherently disagree with their property valuation, there must be a valid reason for appeal, such as a recent sale or appraisal the landowner conducted.
Williams also noted that the appraisal notices headed to Flathead County landowners show estimated taxes based on the new valuation using 2016’s mill rate. He said property owners should keep in mind the new school bonds that Kalispell voters approved last October, and how those will affect the taxes.
The elementary school bond, worth $25.28 million, and the high school bond, worth $28.76 million, meaning a home in the elementary school district valued at $170,000 would see property taxes increase $99 annually. Taxes for a home of the same value in the high school district would increase by about $48 annually, and if the property were located in both districts, its taxes would increase by $147 annually.
The state Department of Revenue has an office in Kalispell, located at 100 Financial Dr., Suite 210. Williams said Flathead County landowners can go to this local office with questions.
For more information, visit the Revenue Department’s website on reappraisal at www.revenue.mt.gov/home/property/reappraisal or call the local office at (406) 758-5700.