Montana Department of Revenue assessing local properties

Appraisers from the Montana Department of Revenue Property Assessment Division came to Havre Thursday and held a presentation at the Hill County Courthouse for people in the area curious about their property taxes and how their properties’ assessments plays into them.

Montana Department of Revenue Property Assessment Division Region 2 Manager Jason Boggess said his department’s job is to evaluate what a property’s market value is, which is used to calculate how much the owner will pay in property tax each year.

Boggess said his department does not decide what the tax rate is, that is the job of the Montana Legislature, nor do they determine mills, which is set mostly by local jurisdiction, all they do is provide their estimation of any given property’s market value which is used to calculate taxes.

The tax rate set by the Legislature, which hasn’t changed since 2015, is 1.35 percent for residential properties and 1.89 percent for commercial properties.

The state assesses 95 mills for schools, six for universities and 1.5 for vocational technology schools, but only for properties which have one in the area.

About 37 percent of property taxes go to local and county schools, with another 28 percent going to county government and 11 percent going to cities and towns.

About 4.5 percent goes to fire and disaster services and 18 percent to the state government.

All told, Boggess said, about 60 percent of property taxes stay local.

He said they use different methods to evaluate the market value of residential and commercial property using data they collect themselves, including realty transfer certificates, as well as data they get from national cost estimator Marshall & Swift.

Market value, he said, is the theoretical price a willing seller and a willing buyer would agree to, free of market hardship on the date set for the current cycle of assessments, in this case, Jan. 1, 2022.

Property Assessment Division Region 2 PVS Area Manager Katie Kakalecik said construction that began after that date isn’t factored into the assessment and while each property is evaluate independently of its neighbors, the theoretical market this sale price would appear in would be in its own community, not that of a city like Bozeman or Missoula.

Kakalecik said appraisers are allowed under law to survey a property without permission, but are not allowed to enter a structure, and they always knock on doors first.

If no one is home, she said, they typically do a quick assessment of the outside of the property along with some basic measurements then leave a business card.

Boggess said they will open unlocked gates to access a property, but if a gate is locked, or there is a dog on the property they will just leave.

Kakalecik said they don’t have the staffing or contact info to set up appointments beforehand, but Boggess said people can ask to have their file marked “call before coming” and they will honor that.

Boggess also lamented that they don’t have the staff to keep up with every property as well as they’d like.

He said they’re supposed to be at every property at least once in a six-year period, but he knows that doesn’t happen for everyone.

Boggess and Kakalecik said they strive for accuracy when they make their assessments, but people who disagree with their number can appeal it to their county tax board.

It must be appealed within 30 days of receiving the valuation to have any impact on the taxes for the year the valuation is received.

Boggess said the county board is made up of local people not associated with department at all and they will rule on which number is more accurate or if neither is sufficient.

If at that point one of the parties isn’t satisfied, he said, they can take it to the Montana State Tax Board, or Montana District Court after that, but they really don’t like having to do that, so even if the county tax board rules against them they don’t usually escalate, unless the number is completely unreasonable.

They also talked about the upcoming property tax relief and said their department is willing to help people apply for it.

He said property owners can receive up to $675 in rebates, but it needs to be applied for and there are no paper applications yet, so if people need help applying online they are happy to help.

He said they can set up a time to visit the North Central Senior Citizens Center for a document clinic, and they can help people individually as well.

“It’s your money, you guys deserve it back, so don’t let the government take it,” he said.

Montana Rep. Paul Tuss D-Havre., who attended the presentation said he wishes the Legislature had made this process automatic like they had done in the past, but that, unfortunately, didn’t happen.

Boggess said people also have the opportunity for income tax relief as well, $1,250 for individuals and $2,500 for couples.

Kakalecik said the money can’t be applied for by people with delinquent taxes.

Tuss thanked the appraisers for their work and said he knows they do the best they can to assess every property as accurately as possible.