New property assessments in the mail this week

Reappraisal means higher taxes for many in Flathead

Long-awaited property assessment notices are arriving in Flathead County mailboxes this week, and for three-quarters of the county's homeowners, it means an increase in taxes.

New reappraisal values for the six-year cycle that ended July 1, 2008, will be used for the 2009 tax year. By law, reappraisal values will be phased in at the rate of one-sixth each year.

Once every six years, the state Department of Revenue is required by state law to conduct a reappraisal of residential, commercial, industrial, agricultural and forest property in the state.

Flathead County residential property increased 73 percent in value over the six-year period. Commercial property increased 47 percent, while agricultural land decreased by 20 percent in value, according to state statistics. Forest land increased by 40 percent in value.

Not all local property owners will see tax increases, though. Of the 31,632 residential taxpayers in Flathead County, 24,087 will have tax increases while 7,545 will have decreases in tax liability.

Richland County, which experienced a dramatic resurgence in oil drilling a couple of years ago, had the highest increase in property value, with residential property up 80 percent in value. Other active oil-producing counties also had extreme increases in the value of residential property: Dawson County had a 79 percent increase while Petroleum County charted a 70 percent increase.

High-growth counties in Western Montana had increases similar to Flathead. Missoula residential property increased by 60 percent in value; Gallatin County residential property increased by 51 percent in value.

The state issued property assessment notices later than normal this year due to the additional time taken to ensure the accuracy of appraisals, according to the Montana Department of Revenue Web site.

"To address concerns over potential changes in housing market conditions due to the declining economy, we collected data six months longer than normal to capture any late-breaking market trends," the Web site states. "We also expanded our market and income modeling approaches to provide a greater level of precision in our appraised values."

The state Web site, at http://mt.gov/revenue, explains how to calculate estimated property taxes, even providing an online calculator to do the figuring. But the department notes that tax estimates are just that - estimates - until local governments figure out precise mill levies based on the new taxable valuations.

Those who disagree with the state's determination of market value or classification may file appeals, but don't contact the Flathead County treasurer. The local Department of Revenue office at 100 Financial Drive, Suite 210 in Kalispell handles appeals. The office is open from 8 a.m. to 5 p.m. Monday through Friday, and can be reached at 758-5700.

There are two options in filing an appeal in writing:

n Request an informal review - Complete a Request for Informal Review (Form AB-26) and send it to your local Department of Revenue office within 30 days after you receive your assessment notice. You can download an informal review form from the state Web site or pick up a form at the local Department of Revenue office. The department will notify you of the time and place of the review, and will send you a written determination of our decision after the review. If you're not satisfied with the results of this informal review, you have the right to appeal the decision to the County Tax Appeal Board.

n File an appeal directly to the County Tax Appeal Board - Complete a Property Tax Appeal Form and send it to the Clerk and Recorder in the County in which the property is located before the latest of these dates: 30 days after you receive your assessment notice; 30 days after you receive our determination of your AB-26 informal review; or by the first Monday in June.

Property owners can download the appeal form from the state Web site or pick up a form at the County Clerk and Recorder's Office.

If you are appealing your property's market value or classification and your taxes become due before the appeal is resolved, you will need to specify the grounds of your protest in writing, and pay the taxes disputed under protest by the due date, the Web site explains.

If the appeal is successful, the county treasurer will issue a refund.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com