Property tax reappraisals by the numbers

Guest column/Janna Taylor

There are still lots of questions about the new property tax appraisals. As most of you know, Montana re-appraises property every six years and 2002 was the last. That makes 2010 next.

Past legislatures have limited any increase to 1/6 so the increase would be phased in over the six-year period.

That means that our property has is just now reaching the 2002 appraisal level.

Early last week the director of our Department of Revenue was in Polson and Kalispell. The department wanted to hear from local property appraisers and real estate agents.

I'd like to compliment Director Bucks for this effort.

Our governor has said that he wants no net gain in total property tax collected for the state. Values around here have risen much more than most areas of the state.

The bottom line? Yes, we will see increases.

We have several unique problems during this appraisal cycle. Property values are decreasing, but the appraisers look at recent sales. Sales are decreasing as well, so the last few sales might be for more than the current value.

Director Bucks is attempting to analyze these trends. He has extended the date, January 1, 2008, that would usually be used to determine values.

If 1-1-08 was used, we'd get the property values from 2007. Now, June 30, 2008 will be used.

Appraisals notices will be sent spring of 2009. The appraisals must be certified by August 1, 2009 for local governments to set their mill amounts.

During the last legislative session many of us worked for permanent property tax reduction, rather than the one time $400. I am worried about people on a fixed income that may be taxed out of their homes. Most property tax money is used locally, and most of that for schools. The state share is about 30 percent. Local mill levies, and especially permissive levies, change the exact amounts around the state.

There are programs to assist low-income property owners. And remember, we can always appeal the decisions when we get our statements.

Many people favor acquisition value, what you paid for your property rather than what your neighbor paid. Our constitution says that similar property must be taxed at the same rate.

Here is an interesting situation that affects us. Of the total residential property value in Lake County, not the number of properties but the total value of properties, out-of-state residents own 45 percent. In Flathead County that number is 40 percent.

Also, approximately 50 percent of the land in Lake County is tribal trust and not on the property tax rolls.

Next week I have an Interim Finance Committee meeting in Helena. I'll keep you informed on any important proceedings.

As always, contact me with questions or comments. Phone 849-6096 or email me at jannataylor@montana.com