State revenue department hears property tax concerns

State officials say it’s not yet known what property tax bills will be, but the effects from sticker shock are real.

When property appraisal notices from the state Department of Revenue began arriving in the mail recently, it left many Lincoln County residents bewildered and afraid of how they’d afford to pay the bills.

Libby was one of many communities across Montana that has or will host local meetings where state officials attempted to allay those fears.

Courtney Winebark is a property valuation specialist with the Department of Revenue. She’s also a local resident who’s trying to help area folks through the process.

“I don’t think people here have ever seen anything like this,” Winebark said. “They see their estimated tax bill and panic, but we are working to explain that it’s only an estimate.

“Once I explain the process, people tend to calm down,” she said.

Dawn Cordone, area manager with the Montana Department of Revenue who led the town hall meeting last week at a packed Ponderosa Room, reiterated what Winebark said and urged property owners to call Department of Revenue field offices to get more information.

“Even if your valuation doubled, it doesn’t mean your taxes will do the same,” Cordone said. “It’s good to call and learn what is happening and how your property’s value was determined. You can even make an appointment to come in and get the information.”

Cordone said the Department of Revenue only determines the property value. Local government budgets will have the most effect on what taxes will be.

Property owners who disagree with the department’s determination of value for their property may submit a Request for Informal Classification and Appraisal Review (Form AB-26) within 30 days of the date on their notice. Owners can electronically submit the form, download it, and find more information on the informal review process at MTRevenue.gov.

State figures indicate the median increase in residential property market value increased 59% in Lincoln County.

The revenue department’s report in November estimated that the taxable value rate for residential property at 1.35% would have to be reduced to 0.94% to keep tax bills even.

A pie chart that showed where property tax dollars go was part of the information provided at the local meeting.

Local schools receive 32.37% of the money while county governments receive 28.18%. Cities and towns receive 11.26%. County-wide schools get 5.96% while fire protection gets 4.44%. The state gets 17.79%.

The taxable value for a property will be used by the county treasurer to determine the property taxes owed for tax years 2023 and 2024.

The estimates of property tax increases in the letters are based on 2022 millage rates, which can change in 2023.

Some who attended the meeting were quick to direct their ire at out-of-state residents who moved into Lincoln County during the last few years.

But Cordone said the state can’t create a distinction for in-state and out-of-state buyers and sellers.

“Out-of-staters are contributing to services even though they may not live here full-time,” Cordone said.

A Fortine resident, Tillie Butts, who also happens to sit on the county tax appeal board, said Montanans who sold their property to out-of-staters are as much to blame as anyone.

“It was good to have this meeting and it’s good to be heard,” Butts said. “Montanans who sold their land have plenty of blame for what is happening.”

She also said she doesn’t trust local elected officials.

“My concern is with our county commissioners and what they’ll do with the money,” Butts said. “Our taxes are going up and they are taking away services, such as the Green Box sites.”

While no more local meetings are scheduled, one virtual town hall will be held from 4:30 p.m. to 5:30 p.m. Friday, Aug. 25. The Zoom link is https://mt-gov.zoom.us/j/83533662055?pwd=RFVmUy9pTG1Cc1E3YVU0aElrbDJwZz09.

Other information is also available at https://mtrevenue.gov/property/.