Montana homeowners will soon receive updated property valuations from the state Department of Revenue, which will determine this fall’s property tax bills. These mailed notices begin a 30-day period for property owners to appeal their valuations, which are expected to rise due to significant home value growth in Montana between 2022 and 2024.
“It’s important that Montana property owners review this information,” Revenue Department Director Brendan Beatty stated. Homeowners need to act promptly, as adjustments affecting the 2025 tax year cannot be made after November.
Unlike other states, Montana generates property tax valuations at the state level, not by county offices. Residential, commercial, and agricultural property valuations are updated biennially. The final tax bills are calculated each fall, combining state valuations with local millage rates set by cities, counties, and districts.
This year’s reappraisal notices will not estimate how updated valuations might alter tax bills, as confirmed by a sample notice on the department’s website. The department had previously acknowledged inaccuracies in the 2023 estimates due to unaccounted adjustments in local millage rates.
Residential values rose 40% on average during the 2023 cycle, leading to a 21% increase in taxes for median properties. In response to rising property tax concerns, Montana’s Legislature enacted a relief package, altering how taxable values are calculated.
The appraisal notices will include a “current assessed value,” reflecting market value as of January 1, 2024, and a “current taxable value,” used to calculate tax bills. Previously, taxable value was 1.35% of assessed value for most homes. The new legislation introduces tiered rates, reducing taxable values for modest homes while increasing the tax burden on other property types. The second-home tax, affecting properties not listed as primary residences, will take effect next year.
—
Read More Montana News
