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Taxpayers may be seeing a second bill soon

Hill County Commission reacts to court loss over lower property tax ask

After their regular business meeting Thursday, members of the Hill County Commission said they wanted to give the community an update on their property taxes, which may require a second bill to go out to make up for a recent loss in court to the state.

Last month, the Montana Supreme Court ruled that Montana counties had to follow the order of the Montana Department of Revenue to collect 95 mills worth of property taxes for education equity after many, including Hill County, refused on the grounds that the increase from last year violated state law.

Earlier this year, 49 out of 56 Montana counties, Hill, Blaine, Chouteau and Liberty counties included, refused to follow the state's order, arguing not just that it was illegal, but that the increase would be unsustainable for their communities, opting instead to collect 77.9 mils which they said was much more sustainable and didn't violate their interpretation of the law.

The mills in question fund part of a state effort to balance funding between wealthy and low-income school districts, and the governor's office, as well as many education advocates have said that the counties' lower tax collection would hurt schools.

Counties argued that the state's general fund could more than make up the difference and that school budgets have already been set, so their lower collection would have no impact on the schools.

Hill County Commissioner Mark Peterson, after Thursday's meeting, said he stands by that position and in solidarity with the schools in their efforts to provide as best they can for students.

Peterson said that, despite the loss in court, he's at least happy that the question was cleared up, and they can begin figuring out how to deal with the ramifications.

He said because they only collected 77.9 mils in the first installment of property tax collection, they will need to figure out how to make up that difference, and it's not clear what counties are allowed and not allowed to do in that regard.

He said they've considered collecting the difference from the next year's taxes, but that may just end up being more confusing than helpful.

Regardless, he said, if they do need to send out notices for another collection they will try to do so as inexpensively as they can, to offset as much of the cost to taxpayers as possible, as the second bill will effectively be for another 22 percent of what they've already paid.

As for how this will affect the tax appeal process, he said, he doesn't really know.

Peterson said the deadline for appeals may be extended given that they will need to collect more, but that's not a guarantee.

He said he's heard that some state legislators are interested in potentially holding a special session to address these matters, but he doubts that will do much good at this point.

Whatever happens, he said, the matter is sure to be discussed a great deal in the near future.

As for how that conversation goes, he said, he wants to, once again, make it clear that this tax increase is not the doing of local government.

He said Gov. Greg Gianforte has repeatedly made false statements trying to make it seem like the increase in property taxes that people are seeing is the fault of local government spending, and that is completely false, as the taxes in question go to the state, not local government, for distribution to schools.

During their regular meeting, the Hill County Commission announced their intent to discuss an ordinance establishing speed limits on 82nd Ave. West and County Road 462 West, also known as Dog Farm Road.

Peterson said they will hold public hearings on the matter in the coming weeks and people wishing to examine the ordinance can come to the Hill County Clerk and Recorder's Office.

He also announced that from now on they will be broadcasting and recording their meetings on Zoom.

 

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