As the deadline to pay the second half of 2009 property taxes looms heavily above us; many ag-land owners are in a quandary trying to figure out if they should protest their Class 3 taxes. Having the option to make this decision has been made possible by the Class Action Lawsuit that has been filed by Lucas Ranch, Montana Farm Bureau Federation and Montana Taxpayers Association against the Montana Department of Revenue (DOR) regarding improperly phased valuation changes to ag-land taxes.
There are three important deadlines you should be aware of for trying to address all ag-land tax concerns explained below.
Phase-in Appeals- Taxpayers experiencing a large jump in Class 3 Ag-Land Property Taxes should consider that a portion of this may be due to an inaccurate phase-in process being used. This is the basis for the Class Action Lawsuit. The following information may be of high importance to your decision making on how to pay your second half taxes to be AN OFFICIAL PART OF THE CLASS ACTION LAWSUIT.
- Tax Protest Deadline- May 31, 2010
This is the deadline for 2nd half 2009 property taxes. Taxpayers MUST pay their taxes by this deadline UNDER PROTEST to get a refund from the lawsuit if we prevail. Tax payers are encouraged to pay an appropriate portion of their tax bill under protest so they can participate in the class and receive a refund if it is successful.
- If one did not protest a portion of their taxes in the first half, you have the ability to protest sufficient taxes to cover the entire 2009 tax year changes in the May 31st tax protest.
- If one did protest a portion of their taxes in the first half, and is going through the process they should only protest the portion affected in the second half for the second half taxes due.
- It may be helpful to indicate on your protest form that you are protesting to be a part of the class action. Other reasons for protest should be listed as well.
Valuation Appeals- Taxpayers wishing to challenge their actual values, who did not appeal in 2009, should be aware of the following dates. Please note that addressing these values to correctly reflect use and productivity levels used in formulating your tax amount is extremely important to your tax bill for the entire tax appraisal cycle. However, valuation changes are not part of the Class Action Lawsuit.
2. Deadline to File a County Tax Appeal Board (CTAB) Appeal for Values- June 7, 2010
This is always the first Monday in June- as designated by (§ 15-15-102, MCA). This deadline will apply to values set for 2010-2014. These appeals are filed with the Clerk and Recorder in each county. This is an alternative to the AB-26 informal review process at the Montana Department of Revenue (DOR). You can get this form from your County Clerk and Recorder.
3. Deadline to file an AB-26 to get an informal review by the DOR- June 30, 2010.
The Department recently amended its rules to allow informal review requests to June 30 by filing an AB-26 form available at the Treasurers Office. After that, the DOR will only be accepting informal review requests on parcels where there has been some change (e.g. new construction, reclassification) which requires a new assessment notice. IF YOU BELIEVE YOUR VALUES NEED TO BE ADJUSTED, YOU NEED TO BE PROACTIVE IN TRYING TO CORRECT THEM BEFORE JUNE 30, 2010.
Our lawsuit challenges only the phase-in calculation applied by the Department. It does not address the underlying valuation issues (e.g. improper property characteristics, incorrect value or productivity information). Taxpayers wishing to pursue those types of challenge for 2010 should file either an AB-26 or a CTAB appeal.
