State mails reappraisals; values jump more than 40-60% for many homeowners

Property tax reappraisal notices went out last week and assessed values are up substantially over the previous appraisals for single family homes.

As an example, using round figures, a home in Columbia Falls city proper assessed for $380,000 rose to $540,000 under the reappraisal — an increase of about 42%.

The Hungry Horse News also asked folks on social media what they were seeing, and they, too reported substantial increases, from 40% to 60%.

The estimated 2023 property tax on the above mentioned home is $5,256 according to the Department of Revenue. The same home in 2022 paid about $4,110. The estimated by tax by the state does not reflect the city’s resort tax rebate, however.

The resort tax rebate in 2022 was about $78 on the same home. This year it promises to be substantially more.

Because the city underestimated its resort tax in 2022-23 fiscal year by about $775,663, those funds, by law, are required to go back to property taxpayers.

The city estimated the resort tax in its first full year would bring in about $780,000. It actually brought in more than $1.364 million, according to May figures.

As such the city will rebate 86.4 mills. Last year the city levied about 180 mills, so the resort tax should cut the total tax levy this year substantially.

Still, the state in its reappraisal report notes that Columbia Falsl city has about a 5.36% increase in its annual taxes since 2013, while the county’s is about 3%. Kalispell’s is about 3.86% and Whitefish’s actually went down, to a decrease of about 0.64%. Whitefish has a much larger resort tax base.

Local schools show the greatest annual increase of 5.82%.

There is some relief available, but homeowners will have to jump through some hoops to get it.

The state Legislature passed property tax rebates on 2022 and 2023 tax bills in the last session, which should ease the tax bump — at least for a couple of years.

Homeowners are eligible for up to $675 a year for their 2022 and 2023 property taxes on their principal residence — defined as the place where you’ve lived for at least seven months of the year. If a homeowner paid less than $675 in property taxes in either year, a homeowner is eligible for a refund of the entire payment.

But the state refund isn’t expected to go beyond the next two years unless the Legislature gives taxpayers another one. This refund was from a surplus in state revenue.

Homeowners have to apply for the refund, details of which haven’t been fully released yet.

The application period begins Aug. 15 and claims must be filed by Oct. 1 for this year’s rebate and then again from Aug. 15 to Oct. 1, 2024 for next year.

Homeowners should be getting more information in the mail in July.

Folks can also protest appraisals.

If property owners disagree with the department’s determination of value for their property, they may submit a Request for Informal Classification and Appraisal Review (called Form AB-26) within 30 days of the date on their notice. Owners can electronically submit the form, download it, and find more information on the informal review process at MTRevenue.gov.

In July, public meetings in cities and towns across the state will be held to help taxpayers understand the property valuation process and how the department determined the new values on their appraisal notices.

The Flathead County meeting is scheduled from 3 to 6 p.m. July 12 at the Hilton Garden Inn in Kalispell.

The reappraisals do reflect a surge in market values over the past few years. In 2018, the median market price for homes with a Columbia Falls address (which includes homes outside the city) was $295,000. In 2022, it was $605,000. This year so far, it has dropped a bit, to $577,000.