So you got your property tax bill, and with its greater itemization this year you are stunned to see how many taxes you pay and you are wondering how that comes to be. You are not alone. The new format and design of the tax bills are generating a lot of questions and raising eyebrows everywhere. So Yellowstone County News is dedicating this issue to try to explain what those taxes are and why you are paying them.
First it must be said, there are no two tax bills in the county that are the same. What your taxes are depends on where you live or where your property is located, and what kind of property is being taxed. Different kinds of property are assessed at different rates and each property’s taxes are set by the different districts or taxing jurisdictions, in which it is located.
Secondly, it must be conceded that the system is incredibly complicated but the basics are understandable, even if some of the reasons for some of the taxes leave you scratching your head. But the one thing that should become clear is that “this little tax” and “that little tax” and “just $10 a month” or “just one mill” soon total to a very big tax bill.
Starting with the basics, a property tax is imposed on real property which is the land you own and the improvements on it, such as a house, garage, barn, granary, etc. Real property does not include such things as mobile homes, automobiles or furniture.
The value of that property is what your tax is based upon, bearing in mind that the taxable value is different than the market value, and will appear to be quite a bit less. So if the market value of your real estate is $1.5 million, the taxable value could appear as something like $28,000. These values are set by the Montana Department of Revenue based upon elaborate formulas, and are adjusted periodically based upon property value assessments that are also determined by the Department of Revenue.
There are dozens and dozens of taxing jurisdictions in the county – ie. agencies or public organizations with the authority to impose taxes — and each jurisdiction– usually overseen by an appointed or elected board of directors — sets their own mill levy as governed by state law, which is your tax rate. So the taxes you pay are determined by a lot of different people, it’s not just the state legislature, or the county commissioners or city council. It’s not just your district’s school board or the irrigation board or the cemetery board. It’s not even the county treasurer who actually sets not a single levy – the county treasurer simply administers the compiling of all the data supplied by other agencies, totals up the results, and sends you the bill.
While the individual agencies may set their mill levies after determining their budgets and the amount of money needed, the fact is many of the levies are set by you – -you the voter — when you voted to approve a levy. For example, voters in Billings just approved a “public safety levy” for a “permanent annual levy up to 34 mills.” While that was touted as amounting to “no more” than $45.90 a year on a $100,000 home value, the broader reality is the levy will be levied against your property as it increases in value – basically forever, which is what that word “permanent” means. (Levies can be one-time levies or for a specific period.) Also, the levy amount may increase by incrementally small amounts, year over year, as allowed by state law.
Of course, there’s probably not a single home in Billings that costs $100,000 – so at the very, very least a $200,000 home is going to pay $91.80 and since the median home price in Billings is rapidly escalating and is currently double that, most homeowners in Billings will be paying a new tax next year of something closer to $183.
The entity that most defines your basic taxing jurisdiction is the school district. There are 17 school districts in Yellowstone County, each with their own levies, and every property is in one of them. If you compare your tax bill to others, you will see that many of the levies, usually those levied by the state or county, are the same for every taxpayer (not the total dollars which will vary depending on the value of the property) .
The school board sets the levy based upon what is allowed by law. If they want to increase the levy by more than that allowed by state law, they must put the request on the ballot to be determined by voters, but even then the extent of that increase is limited by law.
The State of Montana passed a law in 1986 (I-105) that requires that all property tax increases must be voted upon except for minimal adjustments to the cost of living index and insurance. Schools received some exemptions from that law, but caps were still retained. Prior to that law, taxing jurisdictions could increase property taxes without restraint.
So it is that the City of Billings had to put on the ballot their desire for increased tax revenues in regard to the Billings Public Safety Mill Levy, which just recently passed. Voters were allowed to vote one time on the levy which is now permanent – such as the Metra Park levy or the county’s mental health levy.
Your property is probably located in the jurisdiction of several taxing authorities, besides the school district, which could include rural special improvement districts (RSIDs).
RSIDs are commonly established for subdivisions in order to get revenue from the property owners within its boundaries to maintain roads and sidewalks, or maybe a park, or a lighting district. They are created and administered by the property owners who are part of the district and there are hundreds of them in Yellowstone County.
A mill is one thousandth of a percent – or $1 for every $1000. The total number of mills for all the jurisdictions of which your property is a part becomes the total rate which is multiplied times your property value to determine the taxes you will pay. So if your property value goes up and costs remain the same for – let’s say — your local garbage district and they need no more revenue than they had last year, then you should see a lower mill levy, which applied to your increased property value will generate the same amount of revenue for the garbage district.
Here are some of the levies you will see on your tax bill.
Countywide School Retirement and Transportation – 40.36 mills
This is a state imposed levy that funds the cost of contributions to the teachers retirement fund and transportation costs which is paid by every property taxpayer, individual school districts also have their own additional levies to provide additional funds as needed. The same is true for the cost of transportation (buses). The state mill levy for elementary retirement fund is 24.36 and for high school retirement fund is 12.75. County transportation is 3.25.
State Mills for Education – 102.50 mills
This is a total of mills that the state asses for several education funds. Six mills support the college and university system in Montana. It was set at 6 mills in 1948 and has been renewed by the approval of Montana voters every ten years since, with no increase. It generates about $20 million annually and provides almost 10 percent of total state support for public colleges and universities. A statewide equalization mill levy of 40 mills goes to support schools statewide. Taxpayers also pay 33 mills for elementary county equalization and 22 mills for high school county equalization. The state also imposes a 1.50 mill levy to support vocational training in the five counties that have vocational technology colleges, which includes Yellowstone County.
Big Sky Economic Development Authority – 3.29 mills
Commonly referred to as “EDA” or “BSEDA”, this is Yellowstone County’s “economic development agency,” established in 1989 by County Commissioners to encourage economic growth in the community. As such, the agency hosts numerous economic programs, provides training, information and low-cost financing for businesses. It also provides information and grant writing for county departments and works with other civic organizations in support of economic needs. The EDA was allocated 2 mills as part of its funding, although it now also has other revenue sources. The millage is discretionary and can be incrementally increased every year by the County Commissioners. The agency created an auxiliary organization called the Big Sky Economic Development Corporation (EDC) which is in large part supported by business memberships, but since it is partially supported by tax dollars it is a public entity.
Bridge Fund – 3.97 mills
This fund provides for the construction and maintenance of all public county bridges and culverts and is set by the County Commissioners as they decide how to direct the overall revenue they have the authority to levy ($1,634,869 budgeted in FY20-21) Day to day allocation of these funds is directed by the Public Works department.
Road Fund –22 mills
This fund provides for the administration of the County’s public roads and provides for maintenance, construction, and planning of these roads under the management of Public Works. It is applied against all property not located in an incorporated city or town in Yellowstone County. Five mills of this levy are a result of a voter approved measure in 2000, the rest is discretionary mills. The discretionary mills cannot be increased by the Board of Commissioners. The Road Fund FY20-21 budget was $10,530,894.
County Planning – 1.33 mills
This fund helps pay for the work of the Planning Department, which oversees the promulgation and implementation of land use regulations for both the county and City of Billings, including – subdivision and zoning regulation, land use and transportation planning. It also receives substantial funding from the federal government, which has extensive oversight of its policies and function. Its mills are paid by all County properties outside of the City of Laurel, which has its own planning district. It is a non-voted levy.
Extension Service – 0.71
This fund is for work in agriculture and home economics programs in cooperation with Montana State University and the U.S. Department of Agriculture by the County Extension Service staff, which administers a wide variety of programs such as 4-H and public information regarding agrarian and community programs. It is paid by all property owners in Yellowstone County. It is a discretionary levy that the Board of County Commissioners can increase or decrease by adding or subtracting mills from other discretionary funds.
General Fund – 37.15 mills $14,599,767
This fund is used for numerous activities, including funding for the Board of Commissioners, the Clerk & Recorder, Elections, Finance, Treasurer, Auditor, Information Technology, Justice Court, Disaster & Emergency Services, Human Resources, Facilities, the Clerk of District Court, along with other miscellaneous activities including the County’s Capital Improvement Fund, which funds improvements to county properties. All property taxpayers pay it. The various departments administer the application of the funds. The following shows the budget of some of the departments for FY21-22:
–Commissioners $470,426
Salaries and administration costs of office of Board of County Commissioners, who administer county government.
–Clerk & Recorder/ Surveyor $676,272
Office provides the primary administrative function for recording and maintaining the majority of all the legal documents relating to real estate records, land descriptions, county birth and death records and the records of the board of County Commissioners.
–Elections $495,714
The office administers the maintenance of the voter registration files, candidate filings and all aspects of the election process.
–Finance $715,615
Administrates mill levies, grants, and all county finances.
–Treasurer / Assessor/ Supt. of Schools $1,682,566
A combined office. Duties as treasurer involves billing and collecting real, mobile home and personal property taxes, providing mobile home moving permits, tax liens, etc. As Superintendent of Schools the position generally supervises public and non-public schools.
–Auditor $240,249
Investigates and examines claims presented to the County for payment in compliance with County policy and applicable statutes and regulations.
–Info Technology $1,305,562
Administers the county’s computer systems, customized software development, hardware and software installation and maintenance, website administration, etc.
–Justice Court $1,811,659
Small claims court for claims under $7000, civil actions under $12,000, landlord- tenant actions, domestic protective orders, highway patrol and sheriff citations, county attorney complaints, misdemeanors, initial appearance for felonies, fish and game citations, Dept. of Transportation and Dept. of Livestock citations.
–Disaster & Emergency $375,740
DES is responsible for planning for emergencies. The office coordinates communications and oversees operation, day to day, during a disaster. Includes the cost of the county’s participation in the operation of the Emergency Operations Center and the 911 Call Center. DES Director serves as County Fire Chief and Fire Warden providing administration and direction for the rural fire protection services.
–Personnel (Human Resources) $658,664
Department oversees employment, payroll, benefits, conflict mediation, policies and procedures for all departments of the county.
–Facilities $1,075,155
Oversees maintenance of all of the county’s buildings and facilities.
–Clerk of Court $1,484,825
Office provides the primary administrative function for the District Court of the 13th Judicial District Court. Also, issues marriage licenses, handles several case types, schedules Law & Motion.
Metra Park – total of 8.8 mills
Metra Park is a county-owned facility that serves as a venue for concerts, trade shows, sport events and county fair. It benefits from two mill levies, one was created by voters with the establishing of the arena which is now 5.31 mills and the other, 3.49 mills, is allotted by county commissioners for improvements to the facility. The first generates just over $8 million annually to Metra Park and the latter in the 21-22 budget, $3,715,748.
Liability & Property Insurance – 1.86 mills $2,676,551
This fund provides for the acquisition and administration of property and liability coverages and protection for the County. It is paid by all property taxpayers in Yellowstone County. It is a discretionary levy, which County Commissioners can increase or decrease by adding or subtracting mills from other discretionary funds.
Library Fund – 5.91 mills $1,170,257
The County partners with the City of Billings in the funding and operation of the Billings Public Library. The county also helps fund ($8000) the Worden Library. Only property taxpayers not located in Billings or Laurel pay the tax.
GIS $347,717
Geographical Information System oversees mapping and assigning addresses.
Mental Health Fund – 0.53 mills
Provides for ongoing mental health services in the community. Much of it goes to the Mental Health Center, with some covering mental health services at the Youth Services Center. The levy began as a designated amount by the Board of County Commissioners out of the General Fund in the 2002-2003 fiscal year and is a non-voted levy.
Museum Fund – 1.93 mills
Provides support to the Yellowstone Art Museum, Western Heritage Center, Yellowstone County Museum, and the Huntley Project Museum. It is a discretionary levy.
Permissive Medical Fund – 11.56 mills
This levy was enabled by the Montana legislature as an exception to the cap on property taxes imposed in 1986, to fund health insurance coverage for county employees. It allows for a method to cover costs that exceed the base amounts paid in the year 2000. The levy is paid by all property taxpayers in Yellowstone County.
Public Health – 7.26 mills
This fund began with a mill designated from the County’s General Fund by the Board of County Commissioners in the 1990s. This was augmented by 4.75 mills in a voted levy approved by the voters in November of 2002. The funds are directed to the City/County Health Department (Riverstone), which became a separate entity from the County in 1998. The funds assist in the delivery of services related to environmental health, disease control, health promotion, family health services, home care services and related activities. The levy is paid by all county property taxpayers.
Public Safety – Mental Health – 3.26 mills
This levy was passed by the voters in 2010, to assist with law enforcement/jail issues –attempting to reduce criminal recidivism. This levy is structured to address crisis issues and detention center inmate issues. About 56% goes to those services in the community at large and about 41% of it to the detention facility for mental health services.
Public Safety – Sheriff Fund – 28.64 mills
This levy provides for the operations of the County Sheriff, including the coroner, detectives, patrol, the detention facility, and related duties. All property taxpayers in the county pay it. It is a discretionary levy, and the Board of County Commissioners can increase or decrease the levy for these activities by adding or subtracting mills from other discretionary funds under County authority.
Public Safety – Attorney Fund – 12.19 mills
This fund was established after the voters approved an initial levy of 3.3 mills in November of 2000. The voters approved an additional levy of 8 mills in November of 2017. This supports the operations of the County Attorney, which includes prosecution of criminal actions, as well as being the legal counsel for the County. It is applied to all property in Yellowstone County.
Senior/Elderly Activities – 4.24 mills
This fund is applied to all property in Yellowstone County. It includes discretionary funds allotted by the County Commissioners as well as voter- approved levies from 2006 and 2016. The funding is assigned to the Adult Resource Alliance, where it is used for countywide programs for eight senior centers in the county, food, medical and transportation assistance, senior helping hands, elder abuse prevention and other programs.
Veteran’s Cemetery – 0.21 mills
This was established in 2008, by a voter-approved levy to establish and maintain the veteran’s cemetery (now national cemetery). County borrowing for the initial costs associated with that cemetery will be fully paid by June30, 2022, at which time this levy will cease
Weed Control Fund – 0.68 mills
This fund covers work by the Weed Department to control and manage noxious weeds in Yellowstone County. It is paid by all property taxpayers in Yellowstone County.
City of Billings – 177.30 mills
–General Fund, 74 mills
–Public Safety, 80 mills
–Library Fund, 5 mills
–Transit (Bus) Fund, 10 mills
–General Obligation Debt, Streets, 1.52 mills
–General Obligation Debt, Library, 3.50 mills
–General Obligation Debt, Ballpark, 3.28 mills
City of Laurel – 186.44 mills
Town of Broadview – 234.97 mills
Cemetery Districts:
–Huntley, 2 mills
–Custer, 5.51 mills
–Shepherd, 2.17
–Broadview, 0
School Districts in Yellowstone County
Mills set by the board of each district covers operational costs for the district, including salaries, maintenance and capital expenditures, transportation, reserves, debt service, adult education, and technology. Only property within the boundaries of a specific district pay the mills levied by the board of that school district.
Billings School District #2 and #02, 394.47 mills;
Blue Creek District #3 and #3C, 315.89 mills;
Canyon Creek District #4, 363.98 mills;
Laurel District #7, #07, #07L, #7D, #7DL, 303.53 mills;
Elder Grove District #8, #8C, 424.66 mills;
Molt District #12, 190.11 mills;
Custer District #15, #15A, 472.23 mills;
Morin District #17, 295.26 mills;
Broadview District #21, #021, 254.49 mills;
Elysian District #23, #023, 285.09 mills;
Huntley District #24, #24A, 384.75 mills;
Lockwood District #26, 473.49 mills;
Shepherd District #37, 520.31 mills;
Pioneer District #41, 413.89 mills;
Independent District #52, #052, 360.98 mills;
Yellowstone Boys & Girls Ranch District #58, 235.77 mills.
Other Levies: There are a host of other levies (and RSIDs) that are specific to each district in which a property is located such as the Lockwood Pedestrian Safety District to provide for trails and sidewalks in Lockwood (10 mills), or fire districts, irrigation districts, water and sewer districts, a park district in Billings, or soil conservation districts. The mills vary district to district.
