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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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Montana

DeSmet and City of Missoula working on interlocal agreement

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DeSmet and City of Missoula working on interlocal agreement


MISSOULA — During the school elections, DeSmet School District had an interesting ask of its voters, the district asked voters not to support a bond that would have been used to purchase land to build a rectangular field for the school.

This request came after Missoula County scheduled to transfer the land in question to the city, because of this, the city and the school district began discussions on ways they could work together to build the field.

Parks and Rec Director Donna Gaukler explained why those discussions took place.

“There’s no real reason for local government to buy land from local government when all we really need to do is think about what’s the best use of all these regardless of who it’s owned by,” Gaukler said.

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“City, county, one of the schools and how do we get the greatest benefit out of it instead of selling land back and forth let’s save our money for improvements and for maximizing the benefits of the land for the public.”

Although this is not the first time the city has made an interlocal agreement with a second party, Matthew Driessen the superintendent of DeSmet School was appreciative with the city’s willingness to find a solution that would be more beneficial to taxpayers.

“Coming together to say here’s a way for us to continue with the vision but not increase the taxpayer’s bill I think is pretty important,” Driessen said.

“I think that type of collaboration is the type of government cooperation that the people of Missoula are looking for.”

Gaukler says even with an interlocal agreement between the city and the district the development of the field will still cost taxpayers, but this will be the most efficient way to get it built.

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“Land is really expensive in the valley, development is really expensive, so the better in our opinion that we can use those lands the better that we can jointly spend taxpayers dollars and share as many facilities and lands as possible the greater our quality of life is for less money.”

No agreement between the district and city is official yet but one is expected to be made within the next year.





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Montana's Attorney General Said He Recruited Token Primary Opponent to Increase Campaign Fundraising – Flathead Beacon

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Montana's Attorney General Said He Recruited Token Primary Opponent to Increase Campaign Fundraising – Flathead Beacon


HELENA — Montana’s attorney general told supporters he skirted the state’s campaign finance laws by inviting another Republican to run against him as a token candidate in next month’s primary so he could raise more money for the November general election, according to a recording from a fundraising event.

“I do technically have a primary,” Attorney General Austin Knudsen said last week when asked at the event who was running against him. “However, he is a young man who I asked to run against me because our campaign laws are ridiculous.”

Knudsen separately faces dozens of professional misconduct allegations from the state’s office of attorney discipline as he seeks a second term. He made the comments about his primary opponent during the fundraiser on May 11 in Dillon, Montana, according to the recording obtained by the Daily Montanan, which is part of the nonprofit States Newsroom organization.

In the recording, Knudsen is heard saying that Logan Olson “filed to run against me simply because under our current campaign finance laws in Montana, it allows me to raise more money. So, he supports me and he’s going to vote for me.”

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Knudsen’s senior campaign adviser Jake Eaton declined to comment on the recording.

Olson, a county attorney in rural northeastern Montana, denied being recruited by Knudsen. Campaign finance records indicate his filing fee was paid by a longtime Republican operative who is also a Knudsen donor.

The state’s campaign finance watchdog agency, the Commissioner of Political Practices, is investigating complaints filed by the executive director of the Montana Democratic Party that allege an agreement between Knudsen and Olson.

Under state law, a person cannot pay or “promise valuable consideration” to another person to induce them to be a candidate, or to withdraw as a candidate.

Democrat Sheila Hogan’s complaints say Knudsen started raising donations exceeding the $790-per person allowed without a primary opponent long before Olson filed on March 11 — the final day for candidate filing.

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“Olson is not a legitimate, good faith candidate for Attorney General,” both complaints state.

Eaton, who called the complaint against Knudsen frivolous, said it was “common practice for candidates to accept primary and general contributions and then return the money if there is no contested primary.”

He suggested Democratic Attorney General candidate Ben Alke, a Bozeman attorney, was also accepting more money than what is allowed from individual donors.

However, a search of Alke’s campaign finance reports shows only contributions to his primary campaign.

Knudsen and Olson have until May 23 to respond to the complaints, although Olson has requested an extension, commissioner Chris Gallus said Friday.

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Olson has not raised or spent any money in the race, according to a report filed by his treasurer on Friday.

His April campaign finance report listed a debt of more than $1,500 to Standard Consulting of Helena for reimbursement of his filing fee.

“I did pay Logan’s filing fee and helped him file for office,” Chuck Denowh, a Republican operative and owner of Standard Consulting, said in an email Friday. “I did so because he asked me to.”

Denowh has donated $1,580 to Knudsen — $790 each for the primary and general elections.

Alke said the professional misconduct allegations and other actions by Knudsen are why he’s running for attorney general.

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Knudsen is facing 41 counts of professional misconduct on allegations his office tried to undermine the Montana Supreme Court while defending a challenge to a state law about judicial nominations. The Commission on Practice is scheduled to hear the case in mid-July and recommend whether Knudsen should be punished.

Separately, in early 2021 Knudsen ordered the Lewis and Clark County attorney to dismiss concealed carry weapons charges against a man who allegedly threatened a restaurant manager trying to enforce the state’s pandemic mask mandate. Knudsen’s office later pleaded the case down to disorderly conduct.

In October 2021, a Helena hospital said three unspecified public officials threatened doctors after they refused to treat a COVID-19 patient with ivermectin, a drug for parasites that is not federally approved for the virus. Knudsen’s office later confirmed that he participated in a conference call with hospital executives and that he sent a Montana Highway Patrol trooper to the hospital to talk with the patient’s family after they claimed mistreatment — something the hospital denied.

“This sort of conduct from the chief legal officer and law enforcement officer of the state of Montana is inappropriate and I hope people are paying attention because this is just one of several issues with Austin Knudsen,” Alke said Thursday.

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Conservation easement good for Northwest Montana

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Conservation easement good for Northwest Montana



As Republican legislators representing Northwest Montana and the western edge of our state, we write to express our full support for the Montana Great Outdoors Project. The draft environmental assessment for Phase 1 of the conservation easement clearly illustrates not only that this proposal is the right move for conservation and the environment, but it’s also essential to protect good jobs and the Montana way of life, as well as preserve the very character of Northwest Montana. 

Much of the land between Kalispell and Libby has been owned by a rotating set of timber companies for generations. Those companies have been stewards of their private property, managing the forest for its health and creating hundreds of good-paying, blue collar Montana jobs. They’ve also generously allowed the public to hunt, fish, and recreate on their properties. Generations of Montanans have grown up with access to these lands. It’s impossible to count how many family memories of first deers, rainy Memorial Day weekend camping trips, and mountain sunset drives would have never happened without that access. 

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If we lose the land to subdivision and development, we’ll never get back the magic of Northwest Montana. The Phase 1 easement will protect nearly 33,000 acres from such a generational loss. 

The Montana Great Outdoors project is a win across the board. It will keep the land in timber production as it has been historically. With recent mill closures in the Swan Valley and Missoula, it’s never been more clear that the future of forest health, wildfire prevention, and timber jobs are on the line with every land management decision. 

The project will also maintain the public’s recreational access to the land and preserve the character of Northwest Montana. Population growth is putting unprecedented development pressure on our part of the state. If we do not act to save open spaces and public access, we will lose them forever. This conservation easement will prevent that loss and ensure that future generations can hunt, fish, camp, and explore the forest north of the Thompson Chain of Lakes just as their parents, grandparents, and great-grandparents have. 

Finally, the financial impacts of the easement are positive ones. The land will remain in private ownership and contributing property taxes; there’s no shifting of the property tax burden to homeowners. The cost of the easement is being paid for by a combination of the landowner’s generous donation, the Forest Service, private fundraising, and state hunting license dollars. Montana taxpayers aren’t on the hook for the project. 

We are senators and representatives, elected by the people, but even more importantly we are hunters, fisherman, and outdoors enthusiasts. Some of us have history in the timber industry, several have multi-generational ties to this region. Our families live here. Simply put, this is home. The proposed easement is about protecting and preserving our home. We support the Montana Great Outdoors Project.

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Sens. Mike Cuffe, R-Eureka, Jason Ellsworth, R-Hamilton, and Greg Hertz, R-Polson, and Reps. Steve Gunderson, R-Libby, Amy Regier, R-Kalispell, Braxton Mitchell, R-Columbia Falls, Courtenay Sprunger, R-Kalispell, Tony Brockman, R-Evergreen, Linda Reksten, R-Polson, and Denley Loge, R-St. Regis.



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