Property Tax Modernization Study

The Revenue Interim Committee chose to devote much of its interim work to a study of the property tax system. The property tax study plan called for a comprehensive examination of the state’s property tax system with a goal of identifying problems and possible solutions. The study was designed to provide a general structure that allowed the committee flexibility to explore the most pressing property tax concerns.

The committee adopted a final report summarizing the study.

Study Materials:

Property Tax Library

August 16, 2024

Property Tax Modernization Study: Governor’s Property Tax Advisory Committee

• Property Tax Advisory Committee Final Report

Property Tax Modernization Study: Tax Increment Financing (TIF)

• Revise definition of “blight” (PD 29)
• School Administrators of Montana TIF handout

Property Tax Modernization Study: School Equalization Mills 

• Deposit non-levy revenue in SEPTR (PD 27)

Property Tax Modernization Study: Voted Levies 

• Require voted levies to be in dollars (PD 39)

Property Tax Modernization Study: Draft Final Report 

• Property Tax Modernization Study Draft Final Report

June 24, 2024

Tax Increment Financing (TIF) 

• Treatment of increment upon expiration of tax increment provision (PD 28)
• Revise definition of “blight” (PD 29)
  • Missoula URD III Determination of Blight
• Require an advisory committee for districts that use TIF (PD 30)
• Require public hearing before certain TIF bonding (PD 31)

Property Tax Modernization Study: Property Tax Assistance 

• Requested Estimates for Homeowner & Renter Credit, Intangible Land Program

Property Tax Modernization Study: School Equalization Mills 

• Legislation to deposit non-levy revenue in SEPTR  (PD 27)

Property Tax Modernization Study: Governor’s Property Tax Task Force update

• Public comment: Bob Story

May 9-10, 2024

Combining Equalization Mills

• Advance, Repay, and Remit: The Complicated Journey of County Equalization Aid (AKA the 55 Mills)
• School Equalization: Non-Levy Revenue
• Fix state equalization mills draft (PD 25)

Real Property Exemption Audit Follow-Up

• RIC Exempt Property Review – Request for Information
• Revised exempt property review draft (PD 23)

Property Tax Assistance

• Property Tax Assistance Programs
• Homestead and Comstead Model
  • County Examples
  • Scenario Comparisons

Local Government Levies

• 15-10-420 Sensitivity Analysis
  • Full Inflation
  • Population Instead of Newly Taxable
  • SB 511
• Legal Analysis of Subjecting Voted Levies to 15-10-420

Tax Increment Financing (TIF)

• TIF Newly Taxable Data
  • County TIF Newly Taxable Data

March 21-22, 2024

Property Valuation

• Legal Framework for Property Valuation
• Revaluation Cycles in Montana and the U.S.

Data Tools

• LFD Interactive Tools: New Dashboards

15-10-420 Calculation

• 15-10-420: Including Income Factor
• Inflation Factor for Mill Levy Calculation in 15-10-420, MCA

15-10-420 Recommendations Follow-up

• Estimating School Equalization Mills in the Revenue Estimate
• Combining School Equalization Mills

Real Property Exemption Audit Follow-up

• Revised exempt property review draft (PD 23)
• Exempt property review draft (previously presented)
• Beneficial use with recapture draft (PD 22)
• Beneficial use draft(previously presented)

Voted Levies

• Voted Levies

Tax Increment Financing (TIF)

• TIF: Reporting in Montana & U.S.
• TIF: Input from County and Schools
• Butte-Silver Bow Handout
• School District Input on TIF Districts
• 7-15-4288 Lists Costs that May be Paid with Tax Increment
• 1988 Attorney General’s Opinion: Use of Tax Increment Funds
• TIF: Duration of Districts

January 22-23, 2024

Tax Increment Financing

• Blighted Area Statutes
• Blight in the Urban Renewal Context
• TIF Administration Statutes
• Columbia Falls Handout
• Belgrade Downtown Design Plan
• Ravalli County TEDD and North Hamilton

Real Property Exemption Audit Follow-up

• Exempt Property Review Draft
• Beneficial Use Draft
• Public Comment:
  • Jeff Essman

Data Tools

• Property Tax Model Updates

November Requests

• Information Request:  Bond Election Vote Requirements
• Information Request:  NorthWestern Energy Property Tax Tracker
• Information Request:  Paying Property Taxes Through Escrow
• Information Request: Exempt Nonprofit Healthcare Property by County

Administering Property Tax Payments

• Alternative Payment Schedule Documents
• Sample Property Tax Bills
  • Lewis and Clark County Sample Property Tax Bill

Litigation Update

• Property Tax Litigation Update
• Montana Association of Counties v. State of Montana

Local Government Levy Limits

• Local Government Levy Limits
• 15-10-420, MCA
• Calculating the Maximum Property Tax Mill Levy According to 15-10-420, MCA

Policies to Include in 15-10-420

• Montana Association of Counties
• Montana Taxpayers Association Proposed Changes to 15-10-420

 Implementation of SB 332

• SB 332
• SB 332 and Certified Values

November 2, 2023

• Property Tax Litigation Update
• Fiscal Impacts of Property Tax Exemptions and Abatements
• Tax Increment Financing Overview
• 2007 Property Tax Rebates Originally Proposed by Gov. Schweitzer Memo
• Public Utilities May Disclose State and Local Taxes on Customer Bills
• Using Data to Identify Potential Problems
• Public Comment:
  • Casey Mehmet, Downtown Billings Partnership
  • Alan Christensen
  • Sue Baker, Yarn Bar
  • Bob Story, Montana Taxpayers Association
  • Julie Foster, Ravalli County Economic Development Authority

September 18-19, 2023

Basics:

• Property Tax Slides
• Property Tax Overview
• Property Valuation Process
• Property Taxes in Montana: A Brief History
• Constitutional Property Tax Parameters
• Public comment:  Margaret MacDonald, Big Sky 55+

Limits:

• Property Tax Limits
• Max Mill Levy
• 15-10-420 Calculation Exercise:  Worksheet
  • FY 23 Calculations:  Great Falls,  Helena,  Lake County,  Missoula,  Sanders County,  Yellowstone County
  • Certified Taxable Values:  Great Falls,  Helena,  Lake County,  Missoula,  Sanders County,  Yellowstone County
• Determination of Newly Taxable Property — DOR
• Calculation of State Mills — DOR
• Perspective on Carryforward Authority for State Mills — Jaret Coles, LSD
• 15-10-420 Discussion — Bob Story
• History Regarding the Application of Section 15-10-420 to School District Levies Established under Title 20 — Lance Melton, MTSBA
• Public comment:
  • Candace Payne, Lewis & Clark County Commissioner
  • Bob Story, Montana Taxpayers Association

School Funding:

• K-12 Funding
• School BI Tool
• School Equalization and Property Tax Reduction Account slides

Exemptions:

• Performance Audit: Real Property Tax Exemptions
• Real Property Tax Exemptions slides
• Real Property Tax Exemptions Performance Audit

Comparisons:

• Property Tax Model
• Property Tax Model Power BI Tutorial
• Property Tax Data Questions
• Public comment:  Bob Story, Montana Taxpayers Association