Montana Department Of Revenue Property Appraisal Meeting

The Montana Department of Revenue (DOR) held a meeting July 25, at the Valley County Courthouse, to discuss the details of the income tax rebates and the property tax rebates. They also took time to discuss the guidelines and methods they use to appraise property in the Property Appraisal Department of the DOR.

The two rebates are coming. The income tax rebate is already processed and there is no need to apply. If you qualify, they are either in the mail or still in the process of being mailed. The property tax rebate, however, you need to apply for by Aug. 15. The qualifications for the rebate are that you have owned a Montana residence for at least seven months, having also lived there for a minimum of seven months. You also have to had property taxes billed and paid for the property. The property tax rebate is for up to $675.

The Property Appraisal Department of the DOR took some time to explain their place within the property tax process. A representative explained that all they do is value property, or put a price to it. The representative stated, “The department’s assessed value is 100 percent of market value.” The reason they explained their job is that though property tax is evaluated using the market value of the property, the Property Appraisal Department does not directly work with property taxes. They do not collect or calculate property tax, and they do not set the mill levies.

The Property Appraisal Department while explaining their responsibilities, went in depth on how they take care of their responsibilities. They detailed the ways that they appraise different types of properties. They use three different approaches: the sales comparison approach, the cost approach, and the income approach. The sales comparison approach is used in the appraisal of residential property and vacant lots. It values land using data analysis on recent sales of similar properties within the subdivision. The cost approach is used for the appraisal of agriculture land as well as industrial and mixed use properties. The approach calculates market value by figuring the value of new improvements, subtracting the depreciation, then adding the raw value of the land. The income approach is used only for commercial properties. It evaluates properties using business income and expense data. The market value is calculated through dividing the net operating income by the capitalized revenue. The reason for the different approaches comes from the need to fairly evaluate property, which means calculating based on the property’s use .

If you have any questions or are in need of further information you can contact the DOR through phone at: (406) 444-6900 or by email at: [email protected]. You can also visit their website at: http://www.mtrevenue.gov.