Ruling on 95 mills protects taxpayers and students

The Montana Supreme Court’s recent order upholding the Montana Department of Revenue’s calculation of the 95 school equalization mills provided a protective shield for residential property taxpayers and students educated in Montana’s public schools. The court’s decision respected and preserved bipartisan decisions made by the 2023 Legislature estimating revenues and appropriating funds to fund Montana’s public schools. 

Some county officials erroneously asserted that levying 77.89 instead of 95 school equalization mills would have saved the day for local property taxpayers. This is not the case. The reduction in uniform mills would have reduced taxes for out-of-state corporations by millions per year. By comparison, this change would have reduced an average homeowner’s property taxes by only $45 per year. In addition, particularly in areas of low wealth, the school funding formula would have eventually caused an increase in variable mills for primary residence property taxpayers by twice that amount, or more, to make up for the difference. 

Given that the Montana Supreme Court has unanimously held that the counties’ interpretation of the law is “irreconcilable with the Montana Constitution” hopefully we can all move on and consider other proposals that will enhance equity and address rising residential property taxes. Before we do so, it is important to understand the benefit that school equalization mills bring to property taxpayers across the state.