Revenue Department Says Property Taxes Could Rise Again

Home values continue to rise faster than other property types, pulling tax burden onto homeowners.

by Eric Dietrich, MTFP

Montana Department of Revenue staff told a legislative committee Monday that next year’s reappraisal cycle could produce a partial repeat of last year’s jarring tax spike as the state’s surging real estate market continues to translate into higher residential taxes.

The department expects the market value of the average Montana residential property to be reappraised at 21% higher when it completes next year’s reappraisal cycle. A staff economist said MondaythatiftheLegislature doesn’t rebalance state tax statutes, the higher values will likely result in the average residential tax bill rising by 11% next fall while taxes stay roughly constant or fall on other types of property.