Property tax woes, concerns continue

POLSON — The Lake County Courthouse was full of frustration last Tuesday night, as residents and representatives alike spoke about flaws in the system and problems they feel were brought on by the state’s 2008 property tax reappraisal. 

More than 120 people crowded into a courthouse room for a town hall meeting. Many residents came to seek answers on what could be done now to help bring relief from high property tax bills.

Recreational and lake front land has held its value better than most, skyrocketing tax bills for many around Flathead Lake. Much of last Tuesday’s discussion centered on the avenue the Montana Department of Revenue used to set these numbers.

A record 2,350 Lake County residents to filed informal requests for review (AB26 protest forms) through the DOR this fall.

Several resident spoke on Tuesday about how the high taxes could force them out of their longtime homes.

“This is the first time I’ve felt like someone has slapped me in the face bad,” Dayton land owner Kim Sheesley said. “How many people want to just live? Just live on their property?”

The panel at the front included area representatives John Fleming (D-HD 12) and Janna Taylor (R-HD 11), who moderated the meeting. Rep. Scott Reichner (HD9-R) was also present. Lake County Commissioner Chairman Paddy Trusler attended as well.

Most agreed the system was flawed and needed to be fixed. The biggest weapon the legislators seemed to think they have to form solutions lies in bringing bills with changes to 2011 Legislative session.

Answers to what be could done immediately were less defined. Residents were urged to file AB26 protest forms when the chance comes around again in June. Those who have filled out protest forms need to be armed with information and be ready to negotiate with DOR appraisers.

Commissioner Trusler assured the crowd that adjustments - sometimes reaching hundreds of thousands of dollars - had been granted already.

There will be a revenue shortfall from the readjustments, Trusler said. Twenty percent of taxes goes to providing services in the county.

“I think everybody has to be really carefully about what they wish for,” Trusler said. “Ninety percent of people in Lake County are happy with the reappraisal.”

Rep. Fleming, who serves the district south of Polson, said not many were hit hard in his area.

This discrepancy between spikes in some areas while other areas saw drops in property taxes was another concern discussed on Tuesday.

“Property taxes seems to be based on opinion,” lake front property owner John Haines said. “How can you tax an entire population based on opinion?”

Sen. Jackson also handed out a chart showing a typical house inside Lake County could very easily see a drop in taxes because of the mitigation’s redistribution. The chart showed 601 residents saw an increase of $200 or more.

Rep. Taylor began the meeting with a brief overview of the state’s Constitutional requirement that once every six years the DOR must conduct a reappraisal of properties. The philosophy is set up to follow state guidelines to ensure property is appraised in a fair and equitable manner.

The 2009 legislature passed House Bill 658 to mitigate the reappraisal done by DOR, but Taylor said, the information used to pass this bill was incomplete.

“They scrambled and never got good data,” Taylor said.

Sen. Verdell Jackson (SD5-R) cited several other major flaws in last year’s reappraisal that has cause problems. The DOR did not send appraisers to asses land - “I think they went to an airplane map and looked at your property from 2,000 feet and set your value,” he said. 

He also said the 2003 appraisal data had been wipe from DOR computers.

Two or three hands raised when Kyle Karstens asked who among the crowd had a visit from a DOR appraiser.

Karstens, a former county appraiser supervisor for the DOR, was a part of the panel last Tuesday. He said no appraisers going to the property is unfair and a part of the reason for the mess.

When he was there, he worked to get to every property to inspect and appraise building.

“I thought the DOR was going to carry that tradition on. Obviously not,” Karstens said.

The counties should get control of the reappraisal, he said.

Included in Taylor’s set of solutions is Constitutional amendment that would remove the “equalize the valuation” and “equal valuation” language from the current article.

A list of lawsuits being brought against the state were also presented. Taylor said residents should join those as well.

After filling out the AB26, arm yourself with information, Rep. Reichner said.

“There are flaws, but the appeal process is working,” he said.

The legislators urged residents to testify during the session when the times comes.

Frustrated landowner Tom Costanza was shaking his head all the way out the door on Tuesday night.

“The state legislator needs to grow and brain and pass legislation to fix this,” he said at the meeting. “I believe that if we don’t do something concrete to help these people, you’re going to have a bigger mess on your hands.”