Commissioners Support Questioning Of Mill Levy Process

In response to growing concerns regarding property tax increases resulting from high residential reappraisals, in August Beaverhead County reached out to Montana Attorney General Austin Knudsen seeking an opinion on the interpretation of laws related to property tax levies. This request is supported by the Montana Association of Counties (MACo), of which Valley County is a part of, demonstrating a unified concern amongst county officials across the state.

The request seeks clarification on the calculation of statewide school equalization mills, which significantly impact property tax bills for constituents throughout Montana. According to the request, the State of Montana has consistently levied 95 mills annually, despite a provision in Montana law, specifically in Montana Code Annotated 15-10-420, that requires a reduction in levying authority when taxable values increase.

In a letter to Governor Gianforte’s office, Executive Director of MACo Eric Bryson emphasized that county mils are capped as per the same provision in law. The letter states “When appraised values increase significantly and the taxable values of the jurisdiction rise, the number of mills we [counties] are authorized to levy decreases. Therefore, appreciating values actually decrease our [counties’] levy authority.”

Beaverhead County’s request further argues that unless the State is directed to follow the law and adjust their levying authority downwards, it could lead to over-levying property taxpayers under the current reappraisal cycle.

“Counties prepare and send the tax bills for all taxing jurisdictions and we anticipate they will receive their annual request from the State to levy the full 95 mills soon,” stated Bryson. “The Attorney General’s opinion on this matter will provide crucial guidance on the interpretation of the law, and it is essential to resolve this question promptly as it directly affects the property tax bills of constituents statewide.”

According to Valley County Commissioner John Fahlgren, Valley County isn’t as impacted as other counties who have seen the big increases, however all three Commissioners are in support of Beaverhead County and MACo getting a clarification on the mill levy process. “I would say I’m certainly in support of them following statute and if they’re not, if there is a restriction, like the County has, then they need to abide by the same restriction,” stated Commissioner Mary Armstrong.

Each County in the State is expected to receive notice of the State’s request to levy the full 95 mills this year and a letter or email from the Department of Revenue with the formal notice. Counties need to rely on this notice from the Department of Revenue before setting the state mills. MACo is asking counties to submit a response to the Department of Revenue upon receipt to clarify what the current mill levy authority is for the State and who is making the decisions to levy above that limitation. Once the letter is received by Valley County Commissioners, the Commissioners have to vote on sending the letter in response. “We haven’t received it but I will be voting [to send the response],” stated Commissioner Armstrong, as Commissioner Paul Tweten echoed, “I’ll be voting.” Commissioner Armstrong also applauds Beaverhead County for identifying the need to make the process clearer, stating “I’m glad Beaverhead County identified it. They have a real senior commissioner there who’s outstanding and he’s just really experienced.”