Property valuations prompt some concern

Property assessments upon which taxes will be based for the next two years were mailed out in Hill County last week, and some property owners have expressed opinions ranging from concern to outrage.

Dave Swallow of Center Drive was shocked to find that his property value rose 52.4 percent while most of his neighbors saw increases of less than 20 percent.

By his estimation, he will see a 30 percent tax hike or greater.

He said he spoke to Department of Revenue officials at the Hill County Courthouse but got no satisfaction.

“This is something the lawyers are going to have to deal with,” he said.

He said he made some minor repairs to his home but has city work permits that show the improvements were miniscule compared to the amount of the increase.

The Havre Daily News has received calls from other homeowners who feel their assessment has risen too much since the most recent valuation six years ago.

Many have complained that assessments on Havre’s east side have risen too sharply, given the general condition of the neighborhood.

Others, like Swallow, have said that their property appraisals have increased too much considering what their neighbors were assessed.

Officials of the Montana Department of Revenue advised that people have the option of filing two kinds of appeals if they feel their assessment is too high.

Under the informal review, an appraiser will go back to the home, perhaps even go inside the home and make a final determination.

Or they can ask for a formal review under which the county tax board will review the finding and come up with a final decision.

Molly Peterson, spokeswoman for the revenue department, said dissatisfied taxpayers would be wise to file for both kinds of reviews.

Residents must file the appeal within 30 days of receiving the assessment in the mail, she said.

After that, homeowners can still file appeals, she said, but if they are granted a reduction it will take effect only in the second year of the two-year valuation process.

People may be shocked when they see the amount of the increase in their property value, said Jason Boggess, the northern Montana regional manager the Department of Revenue. But they should not assume that their taxes will rise at the same percentage.

If everyone’s values increased by a similar amount, and all things remain equal, there should be no or little increase in the tax rate.

When people see a 20 percent increase, that seems like a lot, he said.

But the last cycle was six years, he said. That means the average increase was about 3 percent annually.

Many communities have not seen an increase in property values, he said, but Havre has.

He is trying to find out what the average increase in Havre was so people can see how their assessment has gone up compared to others in the community.

He said he understood why people were confused by increases in values on Havre’s east side.

“People may see it as a little run down,” he said. “But we based assessments on market value.”

He said sales on the east side may be healthy, bringing property values up.

Bogges urged people to file for review of their assessment if they feel it’s unfair.

One factor that may lead to out-of-line assessment is the fact that appraisals are made from the exterior.

“We work 8 to 5, just like most people,” he said, “so we don’t see inside the house.”

Sometimes the outside of the house is in fine condition while the interior may need repairs, he said. That wouldn’t be obvious to the appraiser.

Bogges said he is pleased the Legislature has decided to have two-year appraisal periods instead of six.

That should mean the increases will be less substantial at the time of the next assessment.