The Montana Department of Revenue (DOR) recently mailed out property tax appraisal letters across the state. These notices reappraise residential properties every two years.
This process was historically completed every six years up until 2015. With the crazy market boom we saw in 2020, you can expect an overall increase on your property taxes upwards of 40%.
As a taxpayer, you should rightfully be concerned about your upcoming tax bill. Keep in mind your estimated tax bill in the appraisal letter is required by state law to be based on the number of mills levied last year.
An increased value is only part of why your property taxes increase. Most of the property taxes you pay fund local governments, various local taxing districts like rural fire and local schools, among other things based on your levied area.
So how can you combat this increase?
1. You can appeal the valuation if you disagree with it. There are instructions to initiate the appeal in the letter you received, but keep in mind you only have 30 days from the date of the letter to do so.
2. There are rebates of up to $675 from the State of Montana that will be made available to residents for property taxes paid on their primary home in 2022 and 2023. You’ll need to apply to claim the rebate for the 2022 taxes beginning August 15, 2023 and no later than October 1, 2023. The rebate for 2023 taxes paid will be available in the fall of 2024. For more information on this, click here.
3. Income tax rebates were passed by the legislature as well and will be coming soon to Montana income taxpayers. The amount rebated will be the lesser of $1,250 per taxpayer or in the amount of state income taxes paid. You will automatically receive your rebate if you qualify in July 2023 either via direct deposit or check. For more information, click here.
Curious about how property taxes work? The Montana Free Press created an excellent guide detailing this, so check that out here.
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