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Why is my property being reappraised?
The Montana Constitution and state law require periodic reappraisal of property to ensure equal taxation among properties. Montana's Legislature have implemented six year cycles for the past three reappraisals. This allows the increase in values to be phased in to help mitigate the increases.
The department bases the values for the new reappraisal on information from the prior year. So the change in value from one reappraisal cycle is the difference from the last cycle to the present. For the current reappraisal, the deparment moved the valuation date up to account for losses in market value due to the economic slowdown.
Reappraisal Cycle Valuation Date
1997 - 2002 January 1, 1996
2003 - 2008 January 1, 2002
2009 - 2014 July 1, 2008
Will my taxes increase as a result of the reappraisal?
Maybe. There are numerous factors the legislature implemented to mitigate the effect.
- The increase in value will be phased in over 6 years.
- The amount of exemption your house receives will increase each year.
- The tax rate used to determine taxable value will decrease each year.
The legislators were able to make the increase in values revenue neutral statewide through the use of these factors. The average increase in residential properties was 55% and the average increase for commerial and industrial was 34%. There are properties that increased more than the average and properties whose values were under the average. Click here for County percentages
What do the numbers mean on my assessment notice?
Below are two links that will help you calculate the estimated taxes from the numbers on your assessment notice.
Click on the applicable link below.
Residential Site Users: Click Here to Compare Your 2008 and 2009 Property Taxes
Commercial Site Users: Click Here to Compare Your 2008 and 2009 Property Taxes
You will see a series of three messages:
1. Do you want to open or save this file --- choose "open"
2. A web site wants to open content ----- choose "allow"
3. Finally you may see a message that asks what you want to do ----- choose "read only"
There are three yellow cells in the spreadsheet. These are the only numbers you need to enter. The cells in teal will be calculated for you. This spreadsheet will provide you with your prior year's value (Tax Year 2008), how much will be phased in, the tax rates and taxable values through the phase in. The last column will calculate the estimated taxes during the phase in, using the 2008 Tax Year Mill Levy.
You can print the spreadsheet after you enter your numbers.
See how the change in value for your county measures up to other counties.
County-by-County Comparisons
How does the department of revenue determine the value of my home or business?
The department uses the same methods that an appraiser would use to determine the value of your home for mortgage purposes. The process begins with data collection on the attributes of your home. This information is entered on a Property Record Card. The Property Record Card shows ownership, size of the parcel and influencing factors such as location. It also contains the age, condition and size of improvements, and other characteristics of your property.
For Information on the next steps of the valuation process click here . The department of revenue has further information on the valuation process on their website .
Why it is important to review my property record card?
Now that you know the value the department believes your home was worth on July 1, 2008, you should check to see if you agree with the characteristics or data they gathered. Incorrect data or assumptions can have an affect on the valuation of your property.
Each parcel in the state has a property record card. They are stored on the state's Cadastral Mapping System. http://gis.mt.gov/
To obtain a copy of your property record card, select "Parcel Search" at the top of the arc. On the next screen the system allows you to search by geocode, owner or subdivision. If you choose owner, It is important to type your name in exactly as it is shown on the assessment notice. Click on the printer icon at the top of the page to print your card.
I have questions or concerns regarding my new valuation!
There is an informal review process that will allow you the opportunity to visit with someone about your valuation. To do this, you will need to complete a Request for Informal Review ( Form AB-26 ) and send it to your local Department of Revenue office within 30 days after you receive your assessment notice.
You can also pick up a form at your local Department of Revenue office. The department will notify you of the time and place of the review, and will send you a written determination of their decision after the review. The department of revenue has offices in every county. For a list of the local county appraisal/assessment offices, click here .
Further appeals
If you are not satisfied with the decision of the department, you can appeal to the County Tax Appeal Board. Once again, this must be done within 30 days of receiving your decision on the AB-26 from the department. The form can be picked up at your local treasurer's office or the clerk and recorder or at this link: Property Tax Appeal Form . Be sure to sign the form and make three copies. One copy will be for you and the other two will be filed with the Clerk and Recorder.
The county tax appeal board will schedule a hearing on the appeal in the county seat of the county in which the property at issue is located. The county tax appeal board will issue a decision on your appeal. If either party is dissatisfied with that decision, an appeal may be made to the State Tax Appeal Board within 30 days of the receipt of the county tax appeal board decision.
If you disagree with the County Tax Appeal Board, you may file an appeal with the State Tax Appeal Board, within 30 days of receipt of their decision. NOTE: Hearings in front of the State Tax Appeal Board require an attorney to represent you and make your case under the Chairwoman's interpretation of statute. Click here for her opininion.
What if my taxes become due during this process or before resolution?
If you have an AB-26 review or appeal pending (either before the County Tax Appeal Board or the State Tax Appeal Board), the law requires you pay the taxes under protest in order to receive any refund and accrued interest. This must be done before the taxes become delinquesnt. The protest must be in writing, specifying the gounds for the portest and listed the amount of the taxes being paid under protest (the taxes associated with the amount of value you believe has been overasssessed). The staff in the Treasurer's Office can help you determine the portion to protest.
YOU MUST CONTINUE TO PAY YOUR TAXES UNDER PROTEST EACH TIME YOUR TAXES COME DUE
I don't disagree with my value, but could use some help. Are there any programs available?
The Department of Revenue has extend the timeline for property owners to apply for property tax relief under both the Property Tax Assistance Program and the Disabled American Veterans' Program this year to incldue the 30-day informal review porcess. Property owners requesting an informat review of their assessed value may take that opportunity to apply for these tax relief programs during the review process.
An additional program, the Extended Property Tax Assistance Program, is not available to all residential property owners. Only potentially eligible residential property owners identified by the Department of Revenue are eligible to apply for benefits under this program. The initial pool of potentially eligible residential property owners is identified by the Department of Revenue the first year after the end of a reappraisal cycle. The Department then mails application forms each year only to those residential property owners who are determined to be potentially eligible based on the criteria listed below. The goal for 2009 is to begin mailing applications on August 3, 2009. The normal deadline for filing completed applications is April 15 each year. However, the deadline for filing completed applications for 2009 has been extended to the due date preprinted on the application form. The program offers a reduction to the tax rate used to determine tax liability on the specific residences and up to five acres of appurtenant land for only those persons or entities who meet the following four specific initial criteria:
• Taxable value of the property must have increased by more than 24% as a result of the 2009 reappraisal;
• Property tax liability must have the potential to increase by $250 or more (based on use of the 2008 mill levy);
• Property owner must have owned the residence as of December 31, 2008, and;
• Owners' total household income may not exceed $75,000.
Isn't there a Program for Seniors?
An income tax credit is available to qualifying taxpayers. The amount of the credit is based on household income adjusted by the amount of property taxes, fees, special assessments and special improvement districts (SIDs) billed on a residence and land not to exceed one acre. The taxpayer or spouse must be age 62 or older as of December 31 in the tax year for which the credit is claimed.
Form 2EC can be filed with the Montana income tax return, or by itself if the individual is not required to file a tax return. The filing deadline is April 15 each year.
Source: August, 4, 2009 memo from Dan Bucks, Director on Property Reappraisal Assessment Notices and Montana Department of Revenue website .
Click Here to Find Additional Information from the 2009 Session on the Reappraisal
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