Article Summary –
Officials from 49 of Montana’s 56 counties are having to send supplemental property tax bills to numerous property owners following a Supreme Court ruling. The ruling was related to a dispute over the state’s “95 mill” school equalization property tax with Gov. Greg Gianforte. The amount of the supplemental bill will be dependent on property type and tax valuations, with homes assessed at a market value of $450,000 owing an additional $104, according to calculations by Montana Free Press.
Montana Counties to Issue Supplemental Property Tax Bills following Court Ruling
Following last year’s dispute with Gov. Greg Gianforte over the “95 mill” school equalization property tax, 49 of Montana’s 56 counties reduced their fall tax bills. However, after a Montana Supreme Court ruling against them, these counties are now tasked with sending supplemental property tax bills to hundreds of thousands of property owners statewide.
The supplemental bills will add to what homeowners owe for the second half of 2023, due at the end of May. The exact amount will be based on property type and tax valuations. For example, homes with a market value of $450,000 will owe about $104 extra.
The 95 mills, collecting about $128 for every $100,000 of a home’s assessed value, fund a state program that equalizes funding between tax-rich and tax-poor school districts. They constituted a minor part of most property tax bills, alongside collections for local school levies and city and county programs.
The 95 mills became contentious following substantial tax valuation increases for homes across Montana, contributing to significant tax increases for many homeowners. Tax bills for the median residential property rose by 21% in 2023.
The governor and local officials have repeatedly disagreed over the property tax issue, blaming each other for increasing taxes. Many county officials argued that the governor and the state Legislature should have acted to alleviate homeowners’ tax burdens.
After the Supreme Court’s ruling in favor of the Gianforte administration, counties are obliged to send supplemental bills this spring as the decision came after the fall 2023 tax bills had already been sent.
The supplemental bills will affect taxpayers in Montana’s largest cities such as Billings, Missoula, Bozeman, Great Falls, Kalispell, and Helena. Counties spared from supplemental collections include Broadwater, Deer Lodge, Glacier, Madison, Meagher, Teton, and Toole.
County treasurers anticipate that these unusually timed bills will confuse taxpayers. Unpaid tax bills will accrue late fees and, in extreme cases, may result in property loss.
Homeowners with mortgages are urged to contact their banks with any questions, as most have their property taxes included in their monthly housing payments. County treasurers will notify mortgage companies of the updated tax bills.
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