By now, most Montana property owners have opened their 2023 Property Classification and Appraisal Notices, and many have been surprised by the Montana Department of Revenue’s estimate of their property’s market value. It’s no secret that property in Montana has been selling at higher and higher prices, but the size of the increased values is astonishing to everyone — including me.
These value increases and estimated 2023 General Taxes described on the notice — based upon the prior year’s mills — have created a great deal of confusion, fear and some frustration among Montana’s residents. After talking with many Montanans about this issue recently, I learned that most of the fear and frustration is resulting from a misunderstanding of how property values, mill levies and laws work together to become the property tax bill property owners receive in the fall. Let’s break this down to make this complex issue more understandable.
Property taxes in Montana are the primary source of funding for cities, counties and school districts. Thus, the property taxes fund county roads, public school teacher salaries, city police and every other service provided to Montanans by their local governments. We elect our city council members, county commissioners and school board trustees to create budgets and administer our local government. As it relates to property taxes, our local elected officials should prioritize and budget their property tax receipts in the best interests of the constituents who elected them.
