City landowners will see significant property tax rebate

Columbia Falls city taxpayers will see a hefty tax break in their property taxes when they get their bills this fall.

City manager Susan Nicosia told council last week that the city’s 3% resort tax will result in a 70.49 mill reduction in city property taxes this year.

Using her own home as an example, that amounts to a tax relief of about $418.43. Once the rest of the budget is figured into the equation, she expects a total reduction in her tax bill of about $355.

“It’s very significant,” she told council.

The reason is the city estimated the resort tax would bring in about in about $780,000. It actually brought in more than $1.5 million.

Under state law, any tax collected above the city’s estimate goes back to the property taxpayers in addition to what is already called for under the law.

For example, last year’s resort tax rebate was $136,435, or 15.21 mills.

This year, it’s $847,925, or 70.49 mills.

The resort tax already has a property tax rebate built into it — 25% of the tax goes toward property tax relief under the law.

But since the city underestimated the total revenue, the rebate is even bigger this year.

The rebate is not a flat payment across properties, Nicosia clarified. It’s based on mills, so a home or property’s assessed value will play a role in the size of the rebate.

The city is expected to have a first look at its complete preliminary budget at its Aug. 21 meeting at 7 p.m.

The budget document shows expenditures, mill levies and where funds are being spent. Interested folks can comment at budget hearing at that meeting.