Property taxes are complicated issue, changes possible
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Janna Taylor
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Preliminary property reappraisal data is in. In committee last week the Department of Revenue stressed that this data is preliminary and repeated “preliminary” about five times.
Our property tax system is very complicated. So, I’ll just cut to the chase. In Lake County, residential taxes should go down a wee bit, like 1 percent, commercial taxes up 2 percent and agricultural taxes up 10 percent.
Unlike the last cycle six years ago, residential property values have gone down. Jan. 1, 2014 is the date used to value your property.
Interestingly, statewide residential values have increased since then, nearly up to the 2008 numbers. But the appraised values, up or down, do not indicate that taxes will go up or down. Mills in Lake County are predicted to increase 13 percent. Throughout the past 10 years we have voted in several levies and the county has some permissive levy ability, mostly for employee benefits.
Before everyone’s eyes glaze over, see if you can attend one of the Department of Revenue’s road shows in Kalispell on Sept. 23 at 2:30 p.m. at the Outlaw Convention Center and Missoula on Sept. 24 at 9 a.m. at Ruby’s Convention Center on Reserve Street.
It is easy to understand that the county needs their budget amount. If residential taxes decrease, agricultural or commercial taxes have to increase. That is how our system pits each property tax class against another.
In some Montana counties oil, gas and mining really help. In the Bakken area infrastructure demands are massive. We’ve lost logging in our area and the sale of Kerr Dam will take a million out of the county tax total.
Many legislators have been trying to figure out an easier system. This next session we will probably eliminate the six years phase-in for tax increases and reduce the reappraisal cycle to two years.
Here’s the important thing to remember: when you get your reappraisal notice from the state, sometime in late spring, you have 30 days to protest the value. For residential, the value is established by comparison sales. But you can get those numbers and show actual appraisals, and other mitigating factors to change the value.
The next legislative session starts in January and I’ll keep you informed on the property tax reappraisal information. Hopefully by then the Department of Revenue will have more detailed information for Lake and Flathead Counties.
Please contact me anytime. My cell is (406) 253-8766 and my email is jannataylor@montana.com.
