Department of Revenue hosts appraisal meeting

Taxpayers have been in an uproar since classification and appraisal notices went out in early July so it’s understandable that there was a standing-room-only crowd at the Red Lion Inn in Polson July 11 for a town hall meeting regarding property valuation. Looking around the room, it was mostly a gray-haired crowd, too.

A resident of Rocky Point who owns a third of an acre with 85 feet of beachfront said his valuation went up $450,000. He said his neighbor owns 125 feet of beachfront and 2.69 acres of land, and his valuation went up $100,000.

A woman in the audience suggested that people need to appeal their appraisal.

“Take a look around this room. Who are all these people?” she asked. “We’re all retired, we’re all living on a fixed income, and they’re trying to push us out.”

Dan Lapan, Montana Department of Revenue area manager for Lake, Sanders and Mineral counties, facilitated the meeting. After a PowerPoint presentation, he discussed how to file an appeal using Form AB 26 from the DOR. The form should be filed within 30 days of receiving your classification and appraisal notice – meaning taxpayers who received their notices June 30 only have about 10 days left to appeal.

“You’re not appealing your taxes, you’re appealing your valuation,” he said, trying to separate the two issues.

“If we say your property is worth $300,000 and you think it’s worth $250,000, you should be filing paperwork to have us take a look at it,” he added.

“If you fill out an AB 26 with us or you go to the county tax appeal board or the Montana tax appeal board, they won’t ask you whether or not you agree with your taxes, they are going to specifically ask you if you agree with your property valuations,” he emphasized.

“If you don’t agree with your valuations, we’re the people you need to talk with. If you don’t agree with your taxes, that’s an entirely different thing. I don’t think anyone in this room can help you with that.”

Lapan introduced the new Lake County Treasurer, Erika Jennison, noting that she could explain the mill levy rates, which will directly impact citizens’ tax bills.

“I think Erika would agree that no one knows what your taxes are going to be because the mills have not been set,” Lapan added – a statement Jennison reiterated.

“The most accurate information will be in September,” she said, when mills are typically set by local governments and taxing jurisdictions.

“Does that mill rate ever go down?” a gentleman in the audience asked, and the crowd laughed.

“Sir, in 2009 in Flathead County, every mill rate for every taxing jurisdiction pretty much went down,” Lapan said, ”so, yes, it does.”

Another woman asked if the smaller pool of sales would affect an appraisal.

“There’ve been more sales than we’ve ever had before,” Lapan said.

Commonly asked questions

Lapan also addressed some commonly asked questions.

I haven’t made any improvements to my home. Why is my value increasing?

“We have to value everybody’s property based on market value or, in the case of ag property, production,” he said. The term “improvements” on the assessment notice refers to a house, garage, pavement – any improvements to the property made over the years. Even if improvements have not been made, the market value may still have risen due to sales in the area. “

Why did my value go up more than my neighbor’s?

“The easiest example is if we had a residential subdivision, all the lots were the same size; they were on flat level ground, all the houses were the same size; then we would expect your value would all go up the same percentage.”

But since residential districts are rarely identical, assessors must consider many variables.

“We (Montana Department of Revenue) are not the ones who determine the value,” Lapan said. “That’s what the market does; that’s what buyers and sellers determine.”

He noted that while people may believe the exorbitant property prices of a year ago have started to taper off, a look at real estate listings shows otherwise.

“We’re a year and a half away from our date of appraisal, and the market has continued to go up,” he said. “If you don’t believe me, do your own research, talk to your local realtors, talk to people that know.”

“We’re not valuing based on listing prices, we’re valuing based on sold prices. That’s a very important distinction,” he added.

You’re trespassing on my property. Why didn't you call to schedule an appointment?

Lapan noted that DOR appraisers have the legal right to visit people’s property, however, property owners can contact his office or write a letter asking them not to. “You can just tell us you don’t ever want us to go there, and we won’t,” Lapan said.

Those who file an appeal need to include a daytime telephone number. Otherwise, “it’s frustrating for us to not get a hold of you.”

Are you valuing my home as if it were located in a high growth value city?

“The short answer is no,” Lapan said.

"We're going to value your property like oher properties that are similar to yours in the same geographic area,” Lapan said.

Using Flathead Lake as an example, Lapan explained that there are neighborhoods such as Rocky Point, Bigfork - Sylvan Drive, the East Shore and Finley Point.

“When we’re analyzing properties, we’re looking for sales and grouping them by neighborhoods, and coming up with valuations,” Lapan continued. ”We aren’t taking valuations from Whitefish Lake and using them to value properties on Flathead Lake.”

“We’re trying to be fair, trying to be responsible, and if we’ve got something wrong, by all means – let us know, and let us get it fixed,” he added.

Lapan encouraged those with a specific property question to speak with one of the appraisers at the meeting, or reach out to the local office before the 30-day deadline.

City manager explains budget caps

Polson City Manager Ed Meece also weighed in during the meeting, in response to a question about how to find out the value of local mills. He suggested looking at city and county budgets on local government websites. In August, the state will inform local governments what their new taxable value is, what taxes on new development are, and what their maximum mill rate can be.

Even if taxable valuations double, that does not mean the same thing will happen to property taxes. Both city and county government

are limited to total property tax growth equal to one half the rate of inflation averaged over three years.

“If the valuation doubles, then the mills go down so we stay within that cap,” Meece said.

The only two factors excluded from that cap are first-year new property taxes and special voted mill levies (like the school bonds passed in Polson this spring).

If you couldn’t make the meeting, the entire presentation is available at https://mtrevenue.gov/property/. Just click on Townhall Presentation.

The local Montana Department of Revenue is located at 3 9th Ave. W, Suite Three, Polson, MT. The phone number is 406-872-6236.