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Supplemental Tax Bills Heading Toward Many Montana Property Owners – Flathead Beacon

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Supplemental Tax Bills Heading Toward Many Montana Property Owners – Flathead Beacon


Last year, during a dispute with Gov. Greg Gianforte over the state’s “95 mill” school equalization property tax, officials with 49 of Montana’s 56 counties chose to reduce their fall tax bills against the wishes of the Montana Department of Revenue. This month, after landing on the losing side of a November Montana Supreme Court ruling, those counties’ treasurers are left with the thankless task of sending supplemental property tax bills to hundreds of thousands of property owners across the state.

The supplemental bills will increase the amounts homeowners and other property owners owe for the second half of calendar year 2023, payments that are due at the end of May. The exact amount will depend on property type and tax valuations, with homes assessed at a market value of $450,000 owing about $104 extra, according to MTFP calculations.

Terri Kunz with the statewide county treasurer’s association said in an interview Wednesday that county treasurers are coordinating to send out the supplemental bills in the second half of March so people who own properties in multiple counties will receive notices at roughly the same time.

The 95 mills, which collect about $128 for every $100,000 of a home’s assessed property value, are collected statewide to fund part of a state program that equalizes funding between tax-base-rich and tax-base-poor school districts. They represent a minor component of most property tax bills, which also include collections for local school levies and the operation of city and county programs.

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The 95 mills became a flashpoint last year after the revenue department’s two-year reappraisal cycle for residential properties reported extraordinary tax valuation increases for homes across the state of 40% on median. While the way local government budgets are apportioned among taxpayers means tax bills didn’t ultimately rise in direct proportion to that increase, the reappraisals produced widespread concern and did contribute to notable tax increases for many homeowners. According to an MTFP estimate, the median residential property in Montana saw its tax bill rise by 21% in 2023.

The governor and local government officials have sparred repeatedly over the property tax issue in recent years, with the governor trying to blame rising taxes on local government spending, and many local officials arguing that the governor and state Legislature have failed to take state-level action that could ease homeowners’ tax burdens.

During last year’s tax angst, many county officials came to the conclusion that an obscure provision of the state tax code limits the growth of collections from the 95 mills, which are somewhat distinctive in that they produce a tax in direct proportion to property value. Despite a directive to the contrary from the revenue department and the governor’s budget office, the county officials argued they could legally collect the school equalization tax only at a lower, 77.9-mill level. Counties maintained that the difference, about $80 million statewide, could be readily offset by the state’s flush General Fund.

The dispute produced months of political back-and-forth as well as several lawsuits, with counties touting their dedication to lightening the load on taxpayers and the governor arguing he was defending an essential piece of the school funding system. The Supreme Court ultimately concluded the lawsuits by ruling in favor of the Gianforte administration, noting that the revenue department had used a consistent methodology for calculating the 95 mills for two decades. 

Normally, counties mail property tax bills once a year in the fall, sending notices that specify amounts for fall and spring payments. The Supreme Court ruling, however, came after counties had already sent their fall 2023 mailings with what the court deemed incorrect amounts, necessitating the supplemental bills this spring.

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The seven counties that didn’t collect the reduced amount for the 95 mill tax, and are now spared from supplemental collections, are Broadwater, Deer Lodge, Glacier, Madison, Meagher, Teton and Toole.

Counties where taxpayers can expect the supplemental bills span Montana’s largest cities: Billings, Missoula, Bozeman, Great Falls, Kalispell and Helena.

County treasurers said this week that they expect the unusually timed bills to produce widespread confusion among taxpayers.

Missoula County Treasurer Tyler Gernant, for example, said he worries that residents who are accustomed to paying their tax bill once a year may end up in a bind because they discount the new notice, assuming it’s either a scam or a notice for a tax bill they’ve already paid. He said he’s particularly worried about snowbird residents who head south for the winter after paying their fall tax bill and who might not be keeping a close eye on their mailbox in Montana.

“Our biggest concern is people aren’t going to necessarily know about this,” Gernant said.

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Unpaid tax bills incur late fees and, in extreme situations that develop over time, can result in owners losing their properties.

While all Montana property owners receive mailed tax bills, most homeowners with mortgages on their properties have their taxes bundled into their monthly housing payments. Gernant and Kunz both said treasurers will notify mortgage companies of the updated tax bills, though Kunz encouraged homeowners to reach out to their banks with questions.

Kunz, who also serves as the Jefferson County treasurer, asked that members of the public who call their local treasurer’s office with questions about the new bills keep in mind that the decisions that produced them weren’t made by the line staff who will be picking up the phone.

“It’s really nobody in our office’s fault. We’re just doing our best,” she said.

“My local team members don’t need to get beat up with this,” she added.

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This story originally appeared in the Montana Free Press, which can be found online at montanafreepress.org.





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University of Montana president job draws high interest • Daily Montanan

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University of Montana president job draws high interest • Daily Montanan


The search for a new University of Montana president has drawn more than 60 applicants, according to a spokesperson for the Office of the Commissioner of Higher Education.

“We do not have an exact count at this time, as several applications are still being completed and additional submissions are expected,” said spokesperson and Deputy Commissioner Galen Hollenbaugh in an email earlier this week.

In January, then-UM-President Seth Bodnar announced his resignation to pursue other public service. Wednesday, the final day of filing, he announced he was running as an independent for the U.S. Senate to try to unseat Republican incumbent Steve Daines.

Commissioner of Higher Education Clayton Christian earlier said that with the advice of AGB Search, a firm that’s helped the Montana University System conduct other executive searches, he would undertake an expedited process to appoint a new president.

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Christian has been providing brief updates on a website dedicated to the search. Last week, he said he and AGB Search are reviewing applications, and the pool of candidates was “strong and diverse.”

The commissioner also announced he was convening a small working group to assist in the search, members who “represent a variety of perspectives to assist in vetting and narrowing this field of exceptional candidates.”

In an email this week, Hollenbaugh identified the members of the working group who are assisting Christian with application review as:

  • Community member and former Regent Joyce Dombrouski
  • Faculty Senate Chairperson Valerie Moody
  • Staff Senate President Dominic Beccari
  • Administration Representative John DeBoer (Vice President of Academic Affairs)
  • ASUM (Associated Students of the University of Montana) President Buddy Wilson

Hollenbaugh declined to comment on the way the rest of the process would unfold or the role the working group members would play.

Christian earlier said he anticipated an appointment within one to three months, or as soon as early this month.

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Montana Supreme Court allows ballot measure on initiative process to move forward

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Montana Supreme Court allows ballot measure on initiative process to move forward


HELENA — The Montana Supreme Court has ruled in favor of a proposed ballot measure intended to simplify the process for introducing ballot measures in the future.

Justices ruled 5-2 that the measure, currently called Ballot Issue #8, did not violate state requirements that a single constitutional amendment can’t make multiple separate changes to the Montana Constitution.

“We’re very grateful to the Montana Supreme Court for agreeing with us that the attorney general’s finding of legal insufficiency for Ballot Issue #8 was incorrect,” said SK Rossi, a spokesperson for Montanans Decide, the group sponsoring the measure.

Montanans Decide argues the Montana Legislature has passed laws making it harder for the public to propose and pass ballot issues. The Montana Constitution already guarantees the people the right to pass laws and amendments through ballot measures, but Ballot Issue #8 would expand that to include a right to “impartial, predictable, transparent, and expeditious processes” for proposing those measures. It would seek to prevent “interference from the government or the use of government resources to support or oppose the ballot issue.”

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Attorney General Austin Knudsen’s office argued the measure “implicitly amended” multiple provisions in the state constitution, including by limiting the “power and authority of public officials to speak officially on ballot issues that affect those officials’ public duties” and by putting restrictions on judges and on the Legislature. Montanans Decide, the group sponsoring Ballot Issue #8, disagreed – and the majority of justices sided with them.

“Its provisions operate together to define and protect a single constitutional right—the people’s exercise of initiative and referendum,” wrote Justice Katherine Bidegaray in the majority opinion. “They are closely related components of one constitutional design.”

Bidegaray’s majority opinion was joined by Justices Jim Shea, Laurie McKinnon, Beth Baker and Ingrid Gustafson.

Chief Justice Cory Swanson and Justice Jim Rice each wrote dissenting opinions, saying they would have upheld Knudsen’s decision to disallow Ballot Issue #8. Rice said the language restricting government interference with a ballot issue was not closely related and should have been a separate vote. Swanson agreed with Rice and said the measure’s attempt to fix a timeline for legal cases surrounding ballot measures was also a separate substantial change.

In a statement, Chase Scheuer, a spokesperson for Knudsen’s office, reacted to the decision.

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“This decision only further muddies the courts’ jurisprudence on ballot issue questions,” he said. “This initiative would violate the separate vote requirement by amending multiple parts of the Montana Constitution, but the court contradicted its prior rulings. Attorney General Knudsen will continue to neutrally apply the separate vote requirement in his review of ballot initiatives.”

The court’s decision means that Knudsen’s office will now need to approve ballot language for Ballot Issue #8. Once that language is finalized, Montanans Decide could begin gathering signatures to qualify the measure for the November ballot.

However, last year, sponsors of another initiative went to the Supreme Court to argue that the ballot statements Knudsen prepared were misleading. If Montanans Decide object to their ballot statements, that could further delay signature gathering while the case plays out in court.

“Regardless, we’re going to push as hard as we can to get those petitions into the hands of voters and let them sign and support if they so choose,” said Rossi.

Rossi said the legal battle this measure has gone through – and the possibility of more to come – shows why Ballot Issue #8 is needed.

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“The state Legislature, and also statewide elected officials, have taken every opportunity to create burdens and hurdles and rigamarole for campaigns to get through in order to just get to the signature gathering phase, and then to get through the signature gathering phase onto the ballot, and then get through the election phase,” said Rossi. “The reason we filed this initiative is just to make sure that the process is simple, that the timeline is clear, and that Montanans can have their will heard when they want to propose and pass laws that they deem worthy.”





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Christi Jacobsen enters race for Western House seat

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Christi Jacobsen enters race for Western House seat


Montana Secretary of State Christi Jacobsen is running for Montana’s Western Congressional District seat, entering the race a day after U.S. Rep. Ryan Zinke announced he would not seek reelection.

Jacobsen’s announcement sets up a new contest for the open seat after Zinke, a Republican, said he would seek reelection.

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“As your Secretary of State, I’ve stood up to Washington overreach, defended election integrity, and delivered real results for Montanans. In 2020, voters gave me a mandate to clean up our elections, grow Montana business, and push back against radical liberal special interests. I delivered. Now it’s time to take that same results-driven, America First leadership to Congress.”



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