The Swan Valley Community Council made the main topic of its July 18 meeting about recent home appraisals, focusing on what people should do with steep tax increases for property around the Swan Valley.
Michelle Staples from the Montana Department of Revenue was the main speaker for the meeting, going over the basics of taxes and answering questions from area residents.
“Property taxes are an 18-month process,” Staples said. “We do a lot to assess value and make sure that it is accurate with the market.”
Staples said property is divided into the 16 different groups, but most center around commercial, residential and agriculture. The Department of Revenue then calculates the market value of each by visiting properties, looking at recent home sales and also calculates the cost of replacing a home.
After it is appraised, the value is then multiplied by state and local taxes. The state residential rate is 1.35%, while commercial is at 1.89%. Local governments also use the assessment to draw money through tax mills, which act as a funding mechanism.
“What we don’t do is calculate the mill rate, we don’t populate the bill, we don’t send bills, we don’t collect the money. We simply set the value.”
Montana is one of two states where property taxes are done at the state level, with the other being Maryland. Other states conduct assessments through the county. This changed by law in the 1970s.
People at the meeting were frustrated, as the recent assessment was the largest increase seen in Missoula County and across the state, according to Staples. Some residents argued for a special session to lower the state tax rate, while others questioned the appraisal process.
A county resident spoke up about how they did not have a well nor septic, but the taxes more than doubled. They currently camp on two acres in the Condon area.
“You doubled my taxes, how can you double it when I am just camping on it,” he said.
Staples said part of the process is that properties are appraised at mass, so some assessments are too high and can be challenged. That challenge was due by July 31, and Staples said more than 3,000 Missoula County residents submitted an appeal by July 18.
Other people were concerned about elderly people with fixed incomes paying increased taxes. Staples said there is some relief for homeowners through a property tax rebate, which people can fill out online.
“We want people to know what we do, and we want to get their property right,” Staples said.
With the issue of higher taxes, the Swan Valley Community Council is working to form a taxes subcommittee to see how much Swan Valley residents are paying Missoula County, and how much of that money actually comes back to the community.
Brian Praschak, a resident of Swan Valley, is looking for members to join and help analyze tax data. Praschak, who retired from international business in 2017, compared the government to big business, and both like to get as much money as possible.
The committee has already looked into basic services provided by the county, including road infrastructure and limited law enforcement. In his eyes, the county is getting a lot of money from the Swan that is not getting returned.
“The revenue generated in this area is not being properly spend on the Swan Valley community, that is the perception,” Praschak said. “They do a good job, we can partner with them, show empathy, but we have to hold them accountable.”
The Swan Valley Community Council will meet next month on Aug. 8 at 6 p.m. in the Swan Valley Hall to discuss the future of the Holland Lake Lodge.
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