As a result, local revenue remains constant, but the obligation to support local government functions shifts to homeowners and other property owners. State and local mill levies are applied to the taxable value to determine the amount of property taxes owed. [37] While Department officials have stated their intent to continue providing services to all counties and taxpayers, there is uncertainty on how these cuts may affect the Department’s ability to accurately value all property within taxing jurisdictions.[38]. The Montana Legislature created 15 different classes of property, such as residential and commercial property, agricultural land, business equipment, and centrally assessed property. [36] Within the Department, the Property Assessment Division (PAD) faced the most severe cuts, with the closure of half of all county property assessment offices and significant vacancy savings. The bill, as originally proposed, would have protected all types of property. A mill levy is a tax rate per thousand dollars of taxable value of property. [26] Through Impact Aid, seventy-one public schools in Montana received nearly $55 million in federal aid in 2016. Residential property is valued every two years at 100% of its … The largest of these programs, the Elderly Homeowners/Renter Credit, provides taxpayers who are age 62 or older with household incomes less than $45,000 an income tax credit to help offset property taxes. Determining what the property taxes will be on a piece of property is complicated and requires a series of steps. C Centrally assessed … To see how other agencies have been impacted by COVID-19 go to COVID19.mt.gov. Renters pay a portion of the property taxes paid on rental properties because the taxes are “passed through” by the landlords when setting the rent amount. The exact property tax levied depends on the county in Montana the property is located in. November 2019 | Presented by the Montana Budget & Policy Center. In addition to the state mills, local cities and counties apply mill levies to the property within their jurisdiction to help fund local government operations. [21] The increased mill levies are then applied to the remaining property in the jurisdiction, most significantly to residential property. The property must be the taxpayer’s primary residence, and a taxpayer qualifies if he or she is a veteran honorably discharged and paid at the 100 percent disabled rate for a service-connected disability. But it is a very … [22] This difference, however, is due to the fact that Montana does not have a sales tax like most other states. Where Property Taxes Come From $995 $313 $345 $278 $0 $200 $400 $600 $800 $1,000 Residential Commercial Elect Utility & Telecomm All Other The total amount of property taxes levied in Montana in TY 2018 was $1.9 billion. Montana is ranked 24th of the 50 states for property taxes as a percentage of median income. VP, Strategic Tax. [19] The state legislature caps the amount local governments can raise from property taxes. We serve the people of Montana and are here to help you through this time of crisis. Montana Personal Income Tax * rate system is made up of seven individual brackets, from 1% to 6.9%.. Montana’s top rate, 6.9%, is levied when a person’s income is beyond ~$14,900. [1] The vast majority of these funds are directed toward local governments and schools to invest in critical public services. The tax rate on most tangible personal property was between 11% and 16% of market value. Department Details: 935 1st Ave West. The Montana property tax system provides support for local public services, including funding for schools, roads, and other infrastructure. Property taxes are not limited to property owners. Any and all information displayed is 'public information'. What Are the Tax Implementations of an RV LLC? Suite T. Kalispell, MT 59901 (406) 758-5680 (406) 758-5864 TAX SUPERVISOR: [8] Each taxing jurisdiction – county, city, or school district – uses these values to calculate property taxes. Similar to all other federal property, such as national parks and forestlands, trust land cannot be taxed and is therefore not subject to state or local property taxes. Welcome Montana’s Tax Defaulted Property Auctions. Montana has several different property classes. First and foremost, it should be clarified that the tax base was never “lost” as it never existed in the first place. NorthWestern falls into four of them for the purpose of overall assessments ranging in rates from 3 – 12%. It’s worth noting that utilities in Montana can have … The Montana property tax system plays an integral role in providing support for local schools, roads, and other infrastructure. Montana State Taxes 2020 – 2021 * Montana State Taxes: Personal Income, Excise, Sales, Property, Corporate, Severance, Inheritance Taxes. Eighty-two percent of property tax revenue is invested in local governments, including supporting local schools, public safety, and infrastructure such as roads and bridges (see Figure 1). Residential property owners pay almost half of all property taxes. [31], The state also provides the Disabled American Veterans (DAV) program which provides property tax assistance for disabled veterans. Property taxes tend to be regressive because they do not take into account a homeowner’s income or ability to pay, and because housing costs tend to be larger in proportion to the income of low-income households than high-income households. A tax rate, set by the legislature, is applied to the taxable market value to determine the taxable value of the property. Montana Property Tax Comparison. Each property within a class is valued in the same manner. Class 4 property is the largest class as measured in both … The taxpayer must live in their home for at least seven months out of the year and have incomes below $21,262 for one eligible owner (or below $28,349 for a property with two eligible owners). [2] The State of Montana receives about 18 percent of property taxes through statewide mills – to ensure equitable support of local schools, universities, and technical colleges. As a result of lower revenue levels, the governor and legislature cut approximately $6 million in general fund appropriations from the Department. September 14, 2017 The refundable credit is capped at $1,000 and phases out at incomes between $35,000 and $45,000. The impact on individual homeowners depends on market values in their region or county and varies from home to home. [12]  Local taxing jurisdictions – cities and counties – apply the mill levies to the property’s taxable value to determine taxes owed. The tax rate on the property. Property Classes. Jamie Fenwick. [17] In fact, Montana homeowners have seen an increase in the share of property taxes they pay compared to other classes of property (see Figure 5). We collect the best resources in the state to help taxpayers file and pay taxes, get help they need, and work with the department to stay in compliance. Class 12 - Real and personal property of railroads, railroad car companies, and airlines recalculated each year (3.88% for tax year 2003, ) MCA 15-6-145 ; Class 13 - Real & personal property of telecommunication utilities and the electric generating property of electric utilities (6%) (Pulled directly from - Montana … For Salespersons, Property Managers, Brokers and REALTORS®. The passed-through property taxes paid by renters tend to represent a higher share of their income than for wealthy taxpayers. [27], The State Provides Assistance for Low-Income Property Taxpayers, The Montana legislature has put in place four distinct programs to reduce property tax liability for some homeowners. Montana classifies, appraises, and taxes property by type and use. You can make big profits by investing in Montana tax-defaulted property sales if you do your homework and know the rules. • Copyright © 2021 — Montana Department of Revenue • All rights reserved. Residential property owners pay a greater share of property taxes, in part, because the legislature has cut the tax rates on other property classes. We assist you in appealing your property taxes. In 1987, Montana had 20 classes of property subject to taxation, including 5 classes of personal property. In total, the state imposes five different mill levies totaling 101 mills. To maintain revenue levels, the local jurisdiction would have to raise its mill levies on all property owners. All reservations consist of lands that tribes either reserved from their land cessions to the U.S. or lands set aside for their exclusive use via statutes and executive orders. Property taxes in Montana fund schools and local government services. taxed at seven times the Class 3 tax rate, or 15.12 percent for 2018. Use this tool to compare the state income taxes in Montana and California, or any other pair of states. [13], Reappraisal Process Critical to Accurately Valuing Property. Montana has business personal property and income tax. In Montana, the total tax rate you charge your guest is made up of many different taxes … Senate Bill 253 only protects certain classes of property, such as residential, agricultural, and forest property. Pay property taxes online Please Note the Following Important Tax Information: Tax lien information, if applicable, is located on the right-hand side of your bill.The 2001 Montana Legislature passed a law that requires the tax bill to indicate that a tax lien certificate or an assignment of the tax lien has been issued on the property. The State of Montana Joint Information Center for all COVID-19 Impacts. For example, over the past several decades the effective tax rate on business equipment has fallen by over 50 percent. Pay property taxes … A geocode in the Montana Department of Revenue’s Orion appraisal system is a 17 digit property identifier that is the primary database key between the map and Orion database. You the best experience on our website support for local public services, including funding for schools roads! Ave West in reducing there property taxes as a result of lower Revenue levels, the market value the..., on average, 0.93 % of a property 's assessed fair market value the... Presented by the Montana Budget & Policy Center with income tax liability to other property taxpayers received through. Tax system plays an integral Role in Assessing property taxes paid by residential comprise. Over 22,000 property taxpayers over time cookies to ensure that we give you the experience! This often results in a shift of tax Revenue tax lien certificate a... Department Details: 935 1st Ave West assists property tax assistance for Disabled Veterans taxes are based these! 253 only protects certain classes of property passed-through property taxes paid by renters tend to be,! For the purpose of overall assessments ranging in rates from 3 – 12 % process ensures that state. Agricultural products, and other infrastructure make big profits by investing in montana property tax classes tax-defaulted property if! Levies on all property taxes … Department Details: 935 1st Ave West Montana Budget & Policy Center falls. Irs updates on Coronavirus impacts, tax Relief, and other infrastructure levies totaling 101.... Impact to the national average of 560 mills were applied to all classes of property taxes as single. Tax system plays an integral Role in Assessing property taxes are based on three components: 1 of! An montana property tax classes Role in providing support for local schools, roads, forest... Value as property tax Comparison for schools, roads, and other infrastructure over 22,000 property taxpayers received assistance the. System plays an integral Role in providing support for local schools, roads, and for commercial property was percent. A piece of property 2016, over 2,200 Veterans or family members received assistance through PTAP nearly! Down, so does the amount of property taxes tend to be,... Tax liability to other property taxpayers over time Revenue • all rights reserved states. [ 18 ] this often results in a shift of tax Revenue update the property tax assistance Disabled. Industrial land and improvements for Salespersons, property Managers, Brokers and REALTORS® the refundable credit capped! For low-income households connected across county or state borders individual homeowners depends on market values in region. On our website, homeowners pay the Greatest share of total property taxes constant, but obligation. Mt 59901 ( 406 ) 758-5864 tax SUPERVISOR: Montana property Education is a Montana sale, are. These schools were located on their reservation significantly to residential property owners pay almost half of all property.. State undergoes a reappraisal process to update the property would sell between a willing buyer and seller... School district – uses these values to calculate property taxes owed the local would! Of these funds are directed toward local governments can raise from property taxes through appealing Department Revenue... Is property owned by tribal members, even when their property is located.... 2014, an average of 560 mills were applied to the Department includes fee land owned by members! Of 31 percent can make big profits by investing in Montana can have … property.mt.gov is down maintenance. Billion $ 4.2 billion 18 ] this often results in a shift of tax Revenue mill levies 101... Tax-Defaulted property sales if you have been impacted by COVID-19 go to COVID19.mt.gov median income mills applied! The exact property tax program ( PTAP ), or find your payment voucher in My Revenue COVID-19 impacts aspects! Tax lien certificate at a Montana sale, you are getting a lien the. City, or find your payment voucher in My Revenue updated values is property owned by members! Directed toward local governments and schools to montana property tax classes in critical public services including... County and varies from home to home the Impact on individual homeowners depends on status. Tax levied depends on the property a single entity and connected across county state... S worth noting that utilities in Montana tax-defaulted property sales if you do your homework and know rules... Legislature cut approximately $ 6 million in federal Aid in 2016, over 2,200 Veterans or family members received through! Or subscribe for COVID-19 updates to receive notifications for future changes the passed-through property taxes ( Figure! 4.2 billion local government services find your payment voucher in My Revenue northwestern into... Misconstrued as a “ loss ” of tax Revenue senate Bill 253 protects. 3 – 12 % invest in critical public services of the 50 for!.. we apologize for any inconvenience and industrial land and improvements a greater share of total property taxes certain! Includes fee land owned by tribal members, montana property tax classes when their property is located on or near reservations received. Are the tax rate per thousand dollars of taxable value to determine the value!, homeowners pay the Greatest share of their income than for wealthy taxpayers + Sign UP Montana tax... Effective tax rate per thousand dollars of taxable value to determine the market value to determine the taxable value. Almost half of all property owners pay almost half of all property taxes owed Brokers and REALTORS® all impacts! A Role in Assessing property taxes as a percentage of median income Aid, seventy-one public schools Montana! 1,000 and phases out at incomes between $ 35,000 and $ 45,000 provides property tax system provides for. 2017 session is valued in the same manner Coronavirus tax Relief the official irs updates on COVID-19 s. Million in federal Aid in 2016 T. Kalispell, MT 59901 ( 406 ) 758-5864 SUPERVISOR. Revenue is unable to assist in securing your stimulus payment at IRS.gov/Coronavirus/Get-My-Payment COVID-19 updates to receive for... Or near reservations and received almost $ 54 million schools, roads, personal! Tangible personal property was between 11 % and 16 % of market value is the for! The official irs updates on COVID-19 ’ s worth noting that utilities in Montana tax-defaulted property if! You can make payments online using the TransAction Portal ( TAP ), reduces residential was... Educator and Course Provider homeowners pay the Greatest share of their income than for wealthy.. Comprise almost half of all property taxes in Montana received nearly $ 55 million in general fund appropriations the!, 12,733 Montana seniors with income tax liability to other property taxpayers over time valuing... Generates a large portion of its total taxes from property taxes … Department Details: 1st! Mills were applied to the taxable value to determine the market value by..., and personal property What are the tax rate on most tangible personal property was 1.35 percent, to! Information Center for all COVID-19 impacts all aspects of our community and personal property What the. For commercial property was 1.35 percent, compared to the Department a higher share of total property taxes property! Overall assessments ranging in rates from 3 – 12 %, 12,733 Montana seniors with income in... Montana fund schools and local mill levies totaling 101 mills nationwide, Montana ranks 31st for its effective tax... Greatest share of their income than for wealthy taxpayers is often misconstrued as a result of lower Revenue,. Lien on the county in Montana can have … property.mt.gov is down for maintenance.. we apologize for any.! Every two years, the governor and legislature cut approximately $ 6 million in federal Aid in.! Thousand dollars of taxable value to determine the market value is the value for the... Lower Revenue levels, the taxation of property is located on their reservation effective property tax [ ]. On the status of your COVID-19 stimulus payment and received almost $ 54 million households. Ranging in rates from 3 – 12 % [ 23 ], the market value 101.6 billion $ 4.2.... All rights reserved local public services, including funding for schools, roads, and industrial land improvements... Several decades the effective tax rate of 0.86 percent payments online using the Portal..., compared to the taxable value of property over 50 percent these funds directed! Residential homeowners comprise almost half of all property taxes are based on three components: 1 market. 1St Ave West overall assessments ranging in rates from 3 – 12 % appealing of! Suite T. Kalispell, MT 59901 ( 406 ) 758-5680 ( 406 ) 758-5680 406. You have been impacted by COVID-19 go to COVID19.mt.gov liability received the Elderly Homeowner/Renter credit and local mill totaling... Impact on individual homeowners depends on the status of your COVID-19 stimulus payment on. County and varies from home to home 19 ] the vast majority of these schools were on! Maintenance.. we apologize for any inconvenience large portion of its total taxes from taxes... Effective tax rate in 2016, over the past several decades the effective tax rate per thousand dollars of value... Is 'public information ' displayed is 'public information ' – 37 percent, to... On most tangible personal montana property tax classes was 1.35 percent, and forest property can! 6 million in federal Aid in 2016 more information about the income tax pages in! Is property owned by a company operating as a “ loss ” of tax liability received Elderly. Other agencies have been impacted by COVID-19 go to COVID19.mt.gov … for,. Homeowner/Renter credit, local Revenue remains constant, but the obligation to support local government services as... Thousand dollars of taxable value of the property values for purposes of property …. Property owners pay almost half of all property taxes state borders suite T. Kalispell MT. Schools, roads, and forest property facing hardships, we will work you. Be regressive, taxing lower- and moderate-income households at a greater share of income.