Most Montanans will see property tax hike

More than half the state's homeowners will see higher property taxes, according to figures posted by the Montana Department of Revenue. Here in the Flathead, more than three-quarters of homeowners will see a property tax hike.

The department recently concluded its sixth property tax re-appraisal, as required by the 1972 Montana Constitution. The most recent six-year re-appraisal cycle runs from Jan. 1, 2002, through July 1, 2008.

Statewide, a total of 190,788 residences will see higher property taxes as a result of the reappraisal, about 61 percent of all Montana homes. About 2 percent of the total will see taxes increase by more than $200 per year.

In Flathead County, about 76 percent of the 31,632 homes will see higher property taxes, and about 8 percent will see their taxes increase by more than $200.

Property values in Montana increased across the board as a result of the six-year re-appraisal. The overall value of the state's 321,789 Class 4 residential properties increased by $28.2 billion, or 55 percent. Statewide, Class 4 commercial properties increased by 34 percent, or $3.9 billion, Class 3 agricultural land increased by 29 percent, or $1.2 billion, and Class 10 forest land increased by 52 percent, or $1 billion.

While each of the 56 counties in Montana posted overall increases in property values, 15 Eastern Montana counties totaled 40 percent or less. Liberty County (Chester) had the lowest increase — 22 percent.

Eastern Montana, however, also saw the largest overall property value increases — 80 percent in Richland County (Sidney) and 79 percent in Dawson County (Glendive), both close by the Williston Basin oil fields.

The total property value increases for residences in the state's urban or fastest-growing counties ranged from a low of 40 percent in Cascade County (Great Falls' to a high of 74 percent in Lake County (Polson). While Missoula County residential properties increased by 60 percent, Yellowstone County (Billings' saw a 49 percent increase.

Residential property values in Flathead County increased by 73 percent. Increased values for commercial and forest properties increased by 47 percent and 40 percent respectively, while the value of agricultural land decreased by 20 percent.

Statewide, the only negative numbers were for agricultural and forest lands. The largest decreases posted for the state were minus 100 percent for forest land in Garfield (Jordan) and Prairie (Terry) counties.

According to the state Revenue Department, 6,057 homeowners statewide will pay $200-$400 more in taxes each year, 656 will pay $400-$600 more, 174 will pay $600-$800 more, 52 will pay $800-$1,000 more, and 55 will see their taxes increase by more than $2,000 per year.

Many of those homeowners are likely to be here in the Flathead, on lakeshore properties on Flathead and Whitefish lakes or on mountainside view properties overlooking the valley.

While local city and county governments can reduce the number of mills they levy on the higher-valued properties, to meet their budget projections, the state levy for K-12 schools is fixed at 95 mills and the state levy for higher education is fixed at 6 mills. Those fixed levies will translate into higher taxes as property values increase.

Properties are re-appraised on a "neighborhood" basis, so an older home with no foundation and questionable plumbing and wiring could receive a high assessment if it's in a high-end "neighborhood."

"Land is the underlying driver for higher appraisals in some areas," said Rep. Mike Jopek, D-Whitefish, who worked on the Montana Legislature's joint Revenue and Transportation Interim Committee to study the state's property tax system.

Property owners who question the state's re-appraisal figures have up to 30 days after they receive their assessment notice in the mail to seek an informal review by the Revenue Department. A simple form is available online at www.mt.gov/revenue/formsandresources/forms/AB26.pdf. Locally, call the department's Kalispell office at 883-7227.

Property-tax assistance programs are also available through the state for homeowners who are elderly, low-income or disabled veterans.

For more information on appeals or re-appraisal figures, visit online at http://mt.gov/revenue.