Board upholds $41.8 million value for island mansion

HELENA — The Montana Tax Appeal Board has upheld the $41.8 million value of a mansion built on an island in Flathead Lake.

Owner Don Abbey of La Mirada, California, had wanted his 2014 Lake County property tax bill of $367,696 reduced by two-thirds or more, arguing the house was only worth $9.8 million. 

The appeal board held a three-day hearing in Helena last November to hear arguments in the case.

The board on Friday said it found the Revenue Department’s assessment of Abbey’s improvements to the property reflects its fair market value, but it allows for 2 percent depreciation.

In 2011, Abbey built the 24,000-square-foot, three-story home and other  improvements, such as a 5,000-square-foot boathouse and apartments, on the island.

He once listed it for sale for $79 million. The house and 24 acres were listed at $59 million when Abbey filed his protest. 

It is now listed at $44.8 million.

Abbey has been paying taxes under protest on the island property since 2012, when the assessment was issued. He also owns two other parcels on the lake’s west shore, near Shelter Island, assessed at a collective $2.7 million.