Property tax info, updates

Lake County has the highest increase in property values of all the counties in Montana, 103 percent. I’ve been getting a lot of questions about the new appraisal since my May article about property taxes.

The governor has stated that the state will not increase the total amount of property tax money that it receives. But, the Department of Revenue told me that there will be winners and losers throughout the state.

It looks like we’ll be the losers in this deal.

First of all, let me repeat that most property tax money is used locally, for most counties that’s 70 percent. The state share is about 30 percent. You can get out your last tax statement and see exactly where the money goes. The mills and actual dollar amounts are listed along the right side of the bill.

Most people pay their property taxes in two installments, November and May. The November 2008 bill that you just paid was the first 2008 payment and next May we finish paying 2008. So the new appraised values will not be paid until the November 2009 bill.

Montana reappraises every six years. Any tax increase from the last reappraisal was phased in one-sixth every year for the six-year period. So, any increase you have seen recently is not the new value.

Watch for your new appraisal statement. It should come out sometime in June. You’ll have thirty days to contest any increases. Because this statement has no dollar amounts attached, many of us don’t pay enough attention to it. Just estimate what your tax would be using current mill amounts.

There are several bill drafts concerning mitigation efforts. I have one to freeze property taxes for our lower income senior citizens. This will require a constitutional amendment because in Montana all property must be taxed equally regardless of ownership.

We have wonderful summer people but most of Montana is supported by individual income taxes. Out-of-staters do not pay our income taxes. In Lake County over 45 percent of the value (not the number of houses) of residential property is owned by non-residents.

That is why property tax rebates need to be on primary dwellings, or part of a homestead exemption.

We have two very helpful property tax assistance programs. You can call the Department of Revenue 406-444-6900 or go to their office in Polson at 201 3rd Ave East. One of these programs even offers retroactive refunds. But they have filing deadlines.

I have not mentioned agricultural reappraisals. Talk about complicated! Agricultural land is assessed on production and those levels are set by the Department of Revenue.

The top value for irrigated ground has doubled. There are not too many farmers and ranchers left in Lake County and I’m afraid that this new appraisal will make the remaining look at sub-divisions! But of course, houses aren’t selling now either.

Now that I’m talking about taxes, I’m leaving the House Appropriations Committee for House Taxation. I’ll Vice-chair there and also serve on the Agriculture and the Transportation Committees. The House is divided 50/50 on party lines and I can best represent our needs on the tax committee this session.

Many Montanans have lost their jobs, Polson Ready Mix, Semitool, Plum Creek, just to name a few. How many state employees have lost their jobs? How are we going to continue to pay for services in this economy? Maybe it’s time to downsize government.

The Governor’s Office of Budget and Planning will propose a revised budget soon because revenue estimates continue to fall. Our state employees have automatic raises built into the budget and our state retirees have a 3 percent guaranteed annual increase in retirement pay.

Sounds like a lot of gloom and doom. Actually, Montana is pretty far ahead of most states. Utah plans for a 3 percent across the boards cut in state spending and in Georgia a 10 percent cut in agencies. In Virginia there is a hiring freeze and 500 state employees layoffs. California’s deficit is over $16 billion. Our unemployment is still about the lowest in the nation.

I’m packing up for my four months in Helena. Thank you for re-electing me to the Montana House. It is an honor to work for you. Merry Christmas and best wishes for a happy and healthy New Year.

As always, I’ll keep in touch weekly starting January and I ask you to contact me with any concerns or suggestions. You can e-mail me at jannataylor@montana.com, call my home 849-6096 or write PO Box 233, Dayton, MT 59914 until January.