Lewis and Clark County residents are seeing a sharp increase in property appraisals, but county officials say future adjustments to local mill levies should soften the blow.
Lewis and Clark County Treasurer and Clerk and Recorder Amy Reeves said Thursday her office has fielded numerous phone calls and emails from residents regarding the Montana Department of Revenue’s property appraisal notices sent out this month.
“We do have people who are concerned,” Reeves said. “It’s a stressful time for everybody.”
She was quick to point out the state calculates the property appraisals, not the county.
These notices are not tax bills, the Montana Department of Revenue said last week in a news release. They include the department’s determination of market or productivity value and the taxable value for your property that will be used by your county treasurer to determine the property taxes owed for tax year 2023 and 2024.
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Property owners who disagree with the department’s determination of value for their property may submit a Request for Informal Classification and Appraisal Review (called Form AB-26) within 30 days of the date on their notice. Owners can electronically submit the form, download it, and find more information on the informal review process at MTRevenue.gov.
Both Reeves and Lewis and Clark County Commissioner Andy Hunthausen stressed the notice indicates a property’s market value increase over the past two years and does not necessarily mean property taxes will go up the same percentage.
The state caps what each county can collect in tax revenue every year, allowing for an annual increase equal to a percentage of inflation.
When property taxes go up, the mill levies have to come down to clear the cap.
“We don’t know exactly how it will shape out until October,” Reeves said, at which point the county finance office will finalize mill levies and determine property tax rates.
She said, for example, if someone moved into a neighborhood with inexpensive homes and that one person built a mansion, their property taxes would reflect the steep increase in value. But, when everyone’s property values across the board go up, it prompts the county to adjust the mill levies.
“It should level out a bit when we adjust the mill levies,” Reeves said.
People who own property in school districts that successfully passed additional mill levies, such as Helena Public Schools District, will see those increases on their tax bills additionally.
Hunthausen called the property tax revenue critical to county operations.
“It’s very important as it’s typically funds the bulk operations. In general, property taxes fund local government,” he said. “We don’t have control of that.”
He said the county will not see a boon in tax revenue despite the increases because the state limitations, mill adjustments, inflation and also as the county grows, so too does its need for services.
Montana Department of Revenue is set to host public meetings across the state come July to help taxpayers understand the property valuation process and how the department determined the new values.
A Helena meeting is scheduled for July 11 and 18 from 5:30-8:30 p.m. inside the Helena Middle School auditorium, 1025 Rodney St.
A Boulder meeting is scheduled for July 12 from 5-8 p.m. at the Jefferson County Fairgrounds, 25-51 Little Boulder Road.
Two Townsend meetings are scheduled for July 19 from noon to 3 p.m. and 4:30-7 p.m.
Reeves said the department of revenue also offers some programs that qualified individuals can use to help pay their taxes such as an income-based property tax assistance program, elderly homeowner tax credit and a disabled or deceased veterans residential exemption.
She said she understands her neighbors concerns.
“Even my own was scary,” she said. “All my employees, everyone has seen their appraisals go up. … But we won’t really know the true effect until October.”
Nolan Lister is a reporter at the Helena Independent Record with an emphasis on local government.
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