Supplemental property tax bills to arrive this spring

The Montana Supreme Court determined that the Department of Revenue has the authority to direct counties to levy above the current mill levy calculation limitation each year if reserved mills are determined to be available.  

The department has verified that the school equalization mills, under the statutory limitations that adjust mills down when taxable values increase, are reduced from 95 mills to 77.9 mills for this tax year.  

However, the Department of Revenue under the direction of the Governor’s Budget Office and Gov. Greg Gianforte is directing the county to levy extra mills they hold in reserve to generate additional revenue from property taxpayers in Montana. The Supreme Court ordered counties to comply, therefore the second half taxes will necessarily be increased to comply with the request.

Boiled down, the state has the final authority to choose how much they levy for school equalization. The decision means a vast majority of counties will have to raise the remaining 17 mills on taxpayers this spring.

The property tax debate was sparked when the Department of Revenue reappraised all properties in Montana last summer, many of which saw massive value increases and in turn higher taxes. 

“We, as a county, were just trying to save the residents some money because of the high rise in taxes we’d already been assessed and consequently billed,” explained Mineral County Treasurer Merry Mueller. “So, because of the Supreme Court order, the new tax bills will be coming out in the next two weeks. The first half was due in November and the second half will be due at the end of May.” 

Mueller went on to share instructions for those who may be confused.  

“If you have paid your 2023 taxes in full this supplemental bill will be to collect the additional mills as directed by the Department of Revenue. If you have paid your first half taxes the additional mills are added to your second half payment on this supplemental bill that is why the amount due is different from the original tax bill sent in October of 2023. If your first half taxes, are delinquent, the amount shown on the supplemental tax bill does not reflect the penalty and interest for late payment.”

Deputy County Attorney Wally Congdon said that Mineral County was with the majority of counties in Montana on the decision to pay the lesser mills. 

“Most of the countries thought that they did not, and could not, collect the 95 mills because it was over the amount. The Supreme Court said we have no choice, so all the counties have to do this that did not collect the 95 mills. 4 collected, 52 are doing the same as us.” 

Mueller said for residents to call the Treasurer’s Office at 406-822-3530 with any questions after receiving the supplemental bill.