Property taxpayers will be getting an addendum to their property tax bill, following last week’s Montana Supreme Court decision in favor of the State regarding the amount of mills it may levy in property taxes.
Almost all of the counties in Montana billed property owners less than the 95 mills the State claimed it had the authority to levy.
County commissioners claimed the State failed to levy its tax in compliance with the same cap that the state legislature imposed on local governments. But according to the Supreme Court that decree does not impact State government, “…that authority rests with the State alone.”
How Yellowstone County taxpayers will be notified of the additional tax charge is being ironed out by County Treasure Marci Shafer, in discussions with Yellowstone County Commissioners and Deputy County Attorney, Chief In-House Counsel Steve Williams. There are numerous legal issues about the billing to be addressed as well as how to minimize costs to the county for the mailing. Decisions are not likely to come until January.
Shafer pointed out that some taxpayers have already paid all their property taxes and to bill them for the difference could easily cost more than the amount of revenue collected. Normally, if a tax bill is less than $5 it does not have to be collected – will that rule still hold true in this situation? is one of many questions. Shafer estimated that the increase tax on a house would be about $23.20 for every $100,000 in taxable value.
Shafer pointed out that all the calculations, tabulating and processing would have to be done by hand by staff, which would consume considerable time.
The 95 mills was established by the State decades ago to meet the Courts’ and Legislature’s mandate that the State had to make sure that all schools are funded equally. Although, it was recognized by many commentators, that reducing the 95 mills to 77.89 — as 49 of 56 counties did — would not … Read More here.
