Deadline approaches for property tax appeals

Time is running out for Flathead and Lake county residents who wish to appeal their recent property tax assessment.

The assessments, mailed out at the end of August and beginning of September, showed that more than 70 percent of homeowners in the two counties will see a property tax hike.

Property owners who question the state's figures have 30 days after receiving their assessment notice to submit a form for an informal review.

The deadline is Oct. 1 for Lake County and Oct. 2 for Flathead County.

The assessments came from the Montana Department of Revenue's recently concluded tax re-appraisal, as required by the 1972 Montana Constitution.

The most recent re-appraisal cycle ran from Jan. 1, 2002, through July 1, 2008.

In Flathead County, about 76 percent of the 31,632 homes will see higher property taxes, and about 8 percent will see their taxes increase by more than $200.

In Lake County, roughly 70 percent of homes will see higher taxes.

The increases are being phased in over the next six years while decreases are immediate.

Properties are re-appraised on a "neighborhood" basis. Many of those homeowners who saw significant increases are likely to be on the East and West shores of Flathead Lake.

Scott Williams, regional manager for the Montana Department of Revenue, said waterside properties have held and increased their value, faring better than most other properties.

"As far as taxes go, waterside property increased at a higher rate than almost any other property," Williams said. "But it's still a good investment."

Legislators knew that with the high appreciation in the area over the past several years the Flathead area would get hit, said State Rep. Scott Reichner of Bigfork.

Reichner said he has received e-mails and calls with concerns about the assessments.

Those having the most trouble with steep increases tend to be people who are now retired and living on a fixed income and have owned their property for 20 or more years, Reichner said.

These properties are now assessed at $2 million instead of several hundred thousand.

Some of these property values have also declined since the value cut off date of July 1, 2008, which has posed an additional problem, Reichner said.

"We're not exactly sure where they are at currently," Reichner said.

The Montana Legislature will take another look at the tax assessments in 2011 to see if the data has changed significantly.

If it has, adjustments can be made or properties re-evaluated, Reichner said.

Informal reviews

Property owners who are curious about the assessment are encouraged to use the online tax calculator on the department of revenue's Web site, http://mt.gov/revenue, to figure out their property taxes in each of the next six years.

Williams said the department reviews property assessments with applicants who come into a local office.

The burden of proof is on the owner to provide data to show that the assessment is incorrect.

Evidence could include a recent appraisal for a refinance or a recent purchase or sale of the property or a nearby home.

The results of the informal review will take a month or two to get back to property owners.

As part of the review, officials will go out to examine the property. If something is found to be missing from the original assessment, those items could be added.

Local revenue offices have seen about the same amount of traffic as previous assessment cycles, Williams said, but at this point he's unsure what the final number of requests for informal review will be.

Property owners who aren't satisfied with the result of the informal review have an additional 30 days to file with the County Tax Appeal Board.

After that, property owners who still disagree can take it on to the State Tax Appeal Board and then district court.

Williams encourages owners with questions to go to a local Department of Revenue office.

The Flathead County office is located at 100 Financial Dr., Suite 210, in Kalispell.

Assistance

Property-tax assistance programs are also available through the state for homeowners who are elderly, have low-income or are disabled veterans.

Applications for extended property tax assistance were sent out this week to 40,000 property owners.

Owners whose values have increased by 25 percent and have a dollar increase of more than $250 will receive the form.

Only those with an income less than $75,000 will be eligible.