SEELEY LAKE – Property owners in Missoula County recently received their 2019 Classification and Appraisal Notice indicating the taxable value of their property. Assessments in Missoula County as a whole showed an average increase of 12 percent for residential values and 18 percent for commercial values. Landowners have until July 18 to appeal their assessment with the Montana Department of Revenue.
The classification and appraisal notice sent by the Montana Department of Revenue Property Assessment Division informs landowners how their property is classified and valued for property assessment and tax billing.
For residential, commercial, industrial real property, the current assessed value shown is the Department of Revenue’s determination of market value. According to the Department’s website, market value is the value at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts (Montana Code Annotated 15-8-111(2)(a)).
For agricultural and forest land, current assessed value is the Department’s determination of productivity value; land values are based on productivity capacity per acre.
For personal property (i.e. business equipment), current assessed value is the depreciated value of the personal property less any exempt amount as of January 1, 2019.
Montana currently has a two-year reappraisal cycle. The Montana Legislature shifted from a the six year reappraisal cycle to have assessed values more closely follow current market values. Every piece of real property in Montana is reappraised in odd numbered years based on the value of the property as of Jan. 1 of the preceding even numbered year. The 2019 values are based on the values as they existed Jan. 1, 2018.
Missoula County Clerk and Treasurer Tyler Gernant wrote in an email value increases are highly localized, so different neighborhoods saw different value fluctuations. The average increase of 12 percent for Missoula County residential properties and 18 percent for commercial properties primarily reflects a strong real estate market that saw steep increases in the sales price for local properties.
“The Department of Revenue utilizes actual sales prices, so they have access to very accurate information,” said Gernant.
Gernant added that while the appraisal process heavily affects local taxing jurisdictions, Missoula County has no role in the appraisal process.
Property owners can appeal their current assessed value by filing the Request for Informal Classification and Appraisal Review (Form AB-26 available at https://app.mt.gov/myrevenue/Endpoint/Form/3) with the Montana Department of Revenue by July 18. That will prompt an informal reappraisal where they will be able to discuss the value with a local tax appraiser at the Department of Revenue.
If property owners still disagree with the value after an informal reappraisal, Gernant wrote they could file an appeal to the County Tax Appeal Board. Property owners may also file an immediate appeal to the County Tax Appeal Board and bypass the informal reappraisal stage. The deadline for submitting the appeal is also July 18.
To review your property information visit Property.MT.gov. For more information about the property appraisal notices visit the Montana Department of Revenue website at mtrevenue.gov or call the local office at 406-329-1400.
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