Post by Poor Richard on Oct 3, 2023 19:55:01 GMT -7
State, county governments' disagreement on property tax law interpretation now headed to court
KBZK reports "A long-brewing disagreement between county and state leaders over Montana property tax rates is now going to be debated in the court system.
Some county commissioners have been claiming the state is misinterpreting a provision in law and collecting too much in property tax. Now, counties from Missoula, Gallatin and Flathead to Beaverhead and Fergus have all proposed or approved plans to act on their own and reduce that amount. On Monday, the state filed in district court, asking a judge to step in and stop those moves.
Mike McGinley, who chairs the Beaverhead County Commission, has been one of the most vocal advocates for the counties’ view.
“I mean, that's been the battle cry all through this whole session and all year long – is to try to control property taxes,” he said. “And that's exactly what we're doing.”"
Read the full story here.
The above article is a difficult read but if you study it, the story will make sense. One fact that is not clearly presented is about school funding and the 95 mill rate that has been in place for 20 years. Since property values have gone up the automatic 95 mill rate would normally bring in more money to the state than in previous years. If property values increase by 10% then the fixed 95 mill rate would bring in 10% more money for schools. But state law prevents counties from following the same course of action. They are limited to 1/2 the rate of inflation. So if counties must lower their mill rate to accommodate higher property valuations...should not the state have to do the same?
Some county commissioners have been claiming the state is misinterpreting a provision in law and collecting too much in property tax. Now, counties from Missoula, Gallatin and Flathead to Beaverhead and Fergus have all proposed or approved plans to act on their own and reduce that amount. On Monday, the state filed in district court, asking a judge to step in and stop those moves.
Mike McGinley, who chairs the Beaverhead County Commission, has been one of the most vocal advocates for the counties’ view.
“I mean, that's been the battle cry all through this whole session and all year long – is to try to control property taxes,” he said. “And that's exactly what we're doing.”"
Read the full story here.
The above article is a difficult read but if you study it, the story will make sense. One fact that is not clearly presented is about school funding and the 95 mill rate that has been in place for 20 years. Since property values have gone up the automatic 95 mill rate would normally bring in more money to the state than in previous years. If property values increase by 10% then the fixed 95 mill rate would bring in 10% more money for schools. But state law prevents counties from following the same course of action. They are limited to 1/2 the rate of inflation. So if counties must lower their mill rate to accommodate higher property valuations...should not the state have to do the same?