County holds line on refund request

Flathead County commissioners Tuesday stuck with their past practice of denying a request for a refund of property taxes that was filed after the tax protest period expired.

Commissioners earlier this month tabled action on a request from Bigfork resident Michael Potkonjak for a refund on his 2006, 2007 and 2008 property taxes, for a total of $3,564.

Potkonjak’s request for a refund on a portion of the taxes he paid in 2009 already had been approved in the amount of $1,275 and his request for a refund of part of his 2010 taxes is under review by county and state officials.

In pitching his case to the commissioners, Potkonjak said he and his wife didn’t learn until last year that the Montana Department of Revenue had determined the valuation of their home based on incorrect square footage.

The state had calculated the tax bill based on their house totaling 7,100 square feet. The house contains 6,388 square feet. That square footage change results in a valuation decline from $1,377,689 to $1,171,559.

After learning that, the Potkonjaks in April 2010 filed an appeal of the amount of taxes they’d paid with the revenue department. That appeal was directed to the county in November 2010. The Potkonjaks paid their taxes under protest, as they were advised by the state.

State law gives property owners 30 days to protest their tax bills, Flathead County Administrator Mike Pence said.

“When there’s not timely filing, we don’t usually approve refunds,” Pence said.

Potkonjak acknowledged that he sought a rebate after the 30 days had expired, but he said because neither the valuation notices nor the tax bills he received contain the square footage of his house, he didn’t know the state had the incorrect number. As soon as he learned of the error, he filed the paperwork, he said.

Since a house’s size isn’t on either document, Potkonjak said no red flags were raised to alert him to the error.

“We don’t want to be penalized financially for a mistake we didn’t make,” he said.

Flathead County Deputy Attorney Peter Steele said it is unfortunate that the state had the incorrect square footage for the Potkonjak’s house. “There are probably a lot of errors out there,” Steele said.

Any property owner can obtain information about the data the revenue department is basing an assessment on either by calling the department or by looking up their personal data online, County Treasurer Adele Krantz said.

It’s a good idea for property owners to check their property information to make sure the state doesn’t have errors, Pence said.

If the commissioners change their practice of issuing refunds for requests filed beyond the 30-day appeal period, Steele said that “could open up the doors for everybody to come back in and ask for refunds.”

The vote to deny the refund was 2-1, with Commissioner Jim Dupont voting no.

Dupont said every property owner should automatically file a protest so they can find out if the revenue department made any sort of error on their bill. That’s the only way a property owner could protect himself, he said.

Commissioner Pam Holmquist said while she recognized the Potkonjaks were facing a tough situation, it was important that the commissioners follow their processes and not set a precedent.

Reporter Shelley Ridenour may be reached at 758-4439 or sridenour@dailyinterlake.com.