Legislative Update

I am sorry to say that today’s update brings no good news. When I wrote the Legislative Update on May 4th just after the conclusion of the Legislative Session I had explained that SB 157 (Tax Reappraisal legislation) had been signed into law by Gov. Bullock and that more than likely it would cause the real estate taxes to be raised throughout most of Eastern Montana.

Those of you who have received your tax bill already know this to be true. I have had phone calls from individuals whose tax bill has doubled, tripled and even quadrupled! Many of these individuals are on a fixed income and not receiving any benefit or increased income as a result of the oil and gas development which is taking place in our region. Many of the communities have already seen a substantial downturn in the economy as a result of the plummeting oil prices.

The governor’s policy was wrong and misguided! The legislation is projected to raise an additional $10 million in revenue for our state, mostly from Eastern Montana. Much of that revenue will come from folks who are simply not able to pay the increase. Many of the very people who helped build this great state will not be able to afford to retire here.

In addition to raising the taxes, SB 157 will require the state to hire an additional 12 fulltime employees to complete the work of reducing the reappraisal schedule from six years to two years. As I said in May, Governor Bullock has just added insult to injury by raising taxes on the same communities that he refuses to direct proper investments into which are struggling with infrastructure failures and deficiencies.

At this time the only remedy homeowners have is to file an appeal with the local revenue office utilizing an AB-26 form, or you may skip that step and file your appeal directly with the County Tax Appeal Board (CTAB). The amount of tax will only be considered as it relates to the valuation of your property. If you feel they have valued your property higher than it is actually worth, most definitely file an appeal.

Please be sure to file your appeal within the 30 day period of your appraisal notice. This is critical if your appeal is to be considered.

I will continue my efforts to make the governor understand the negative ramifications this has on our communities and specifically our most vulnerable citizens on fixed incomes. Please feel free to contact me if you need any assistance with this at [email protected] or 406-687-3549.