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Facts & Figures - Montana

Property taxes for the state of Montana.

Property taxes in The Treasure State are levied at both state and local levels. To figure out a property’s taxable value, the property’s assessed value is multiplied by a tax rate, which is determined by the Montana Legislature. After that, a millage rate is then applied by various taxing jurisdictions such as city and county governments, school districts, police and fire protection, and others. Local revenue offices can be found here.

The property tax rate is based on various classes of property (taxable value in 2004 in parenthesis):

  • Class 1 – Net proceeds from mines and mining claims, except coal and metal mines (100%)
  • Class 2 – Gross proceeds from metal mines (3%)
  • Class 3 – Agricultural land (3.30%); nonproductive patented mining claims (3.30%); nonagricultural land 20 acres or more but under 160 acres (23.10%)
  • Class 4 – Residential, commercial, and industrial land and improvements (3.30%); golf courses (1.65%); mobile homes/manufactured homes (3.30%)
  • Class 5 - Air and water pollution control equipment (3%); rural electric and telephone cooperatives (3%); real and personal property of "new industry" (3%); machinery and equipment used in electrolytic reduction facilities (3%); real and personal property of research and development firms (3%); real and personal property used to produce gasohol (3%)
  • Class 6 – Repealed
  • Class 7 - Qualifying rural electric associations (8%)
  • Class 8 - Business personal property (3%, possible phase-down beginning in 2004, MCA 15-6-138)
  • Class 9 - Real & personal property of pipelines and the non-electric generating properties of electric utilities (12%)
  • Class 10 - Forest land (0.35%)
  • Class 11 - Repealed
  • Class 12 - Real and personal property of railroads, railroad car companies, and airlines recalculated each year (3.88% for tax year 2003, ) MCA 15-6-145
  • Class 13 - Real & personal property of telecommunication utilities and the electric generating property of electric utilities (6%)

(Pulled directly from - Montana Gov Site)

The Department of Revenue in Montana has three approaches to determine property value:

1. Cost Approach – Involves the replacement cost for each structure and deductions for losses caused by deterioration and obsolescence.

2. Sales Comparison Approach – This is the preferred method for residential property, and takes into account the number of sales of similar properties (based on market models and comparable sales analysis).

3. Income approach
– This method applies only to commercial properties and is depends on the various types of income producing properties. A capitalization rate is used to translate income into an estimate of value.
For more information on these approaches, read more here.

To participate in the Property Tax Assistance Program (MCA 15-6-134), a homeowner must own his homestead and have lived in it as a primary residence for at least seven months. The owner’s income cannot exceed $19,257 (single) or $25,676 (couple). More information on this refund here.  In addition, a credit is available to homeowners or renters over the age of 62 and who have lived in their primary place of residence for at least nine months; gross household income cannot exceed $45,000.

Property tax relief is also available to a property owner who suffers a fire related or other disaster loss. There are two types: 1) for real property, based on number of days in disuse; and 2) request for informal review of forestlands where trees are destroyed and therefore cannot meet restocking requirements. For more information, visit here.

Montana Department of Revenue

 

 



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