Understanding Your Property Appraisal Notice

Your property classification and appraisal notice informs you how the department classified and valued for property assessment and tax billing.

Here is an example of a classification and appraisal notice’s data table. Descriptions of each row and column heading are provided below the table.

 

1. Situs Address – Situs address is displayed if the property has an address.
2. Legal Description – The legal description defines the exact geographical location of the property.
3. Property classification codes – The codes are used by the department in its computer assisted mass appraisal (CAMA) system to identify property within the 16 property classes.
4. Acres/Quantity – This column provides a property’s acreage amount or the number of personal property items.
5. Prior appraisal cycle value – The amount the department valued the property for the prior 2021-2022 appraisal cycle. The valuation date for the 2021-2022 appraisal cycle was January 1, 2020.
6. Prior year assessed value - This column is displayed if a value change occurred since January 1, 2022, or the property is forest land.
7. Current assessed value - For residential, commercial, and industrial real property, the current assessed value displayed is the department’s determination of the property’s 100% market value as of January 1, 2022. 15-8-111, MCA
   • For agricultural land, the current assessed value displayed is the department’s determination of productivity value as of January 1, 2022; land values are based on productive capacity per acre.
   • For forest land, the current assessed value displayed is the department’s determination of productivity value as of January 1, 2020; land values are based on productive capacity per acre.
   • For personal property (i.e., business equipment), current assessed value is the depreciated value of the personal property less any exempt amount as of January 1, 2024.
8. Prior Taxable Value – The department provides the property’s taxable value to the county treasurer for their calculation of general taxes due. The property’s prior year taxable value is provided to show the difference in taxable value from the prior appraisal cycle (2021-2022) to the current appraisal cycle (2023-2024). Prior year taxable value formula is prior year market value x property class tax rate.
9. Current Taxable Value – The department provides the property’s taxable value to the county treasurer for their calculation of general taxes due. Current year taxable value formula is current year market value x property class tax rate.
10. Value Increase Reason – If a property’s current assessed value increased by more than 10 percent from the prior appraisal cycle’s valuation date, January 1, 2022, the reason for the property’s value increase is displayed. Detailed explanations for the value increase are provided below the table grid.
    • Market Appreciation – Comparable properties within the area of your property have seen an increase in value and are selling for more today than they were during the time leading up to the last appraisal. This resulted in your property increasing in value over the last appraisal by 10% or more.
    • Newly Discovered – New buildings, additions, or improvements have been added or discovered on your property since our last appraisal. Additionally, there may have been a change in the percentage of completion or a prior improvement that was started but not completed. This resulted in your property increasing in value over the last appraisal by 10% or more.
    • Land Change – There was a change in one or more of the land characteristics of your property that resulted in a value increase of 10% or more. This may include but is not limited to a combination of two or more parcels of land; a change in land classification from agricultural or forest land to tract land; a change in agricultural use type or productivity; a change in agricultural or forest commodity price; or a change in a forest zone.
11. Geocode – The property’s unique 17-digit identification number.
12. Land and improvements (buildings) value - Property values are displayed in this row if the department valued the property’s land and improvements (buildings) as a unit.
13. Prior Year Millage Rate – the millage rate provided is the total number of mills levied against the property in the previous year by the county taxing authorities. One mill generates $1 for each $1,000 in taxable value. When calculating estimated taxes, remember to move the decimal three places to the left, such as 0.70575.
14. Estimated 2024 General Taxes – The tax amount shown is an estimate of the 2024 general property taxes based upon the 2023 millage rate where this property is located. Note: A property may be subject to the local government’s special assessments and fees in addition to the general taxes. Property owners should review their previous year tax bill or contact their county treasurer’s office for more information about special assessments and fees that affect their property.

 

Download a PDF Copy of this Example

How Estimated Taxes are Calculated

Current Assessed Value X Tax Rate = Current Taxable Value
Current Taxable Value X Prior Millage Rate/1000 = Estimated Taxes*

Using values from the example above:

$333,040  X 0.0135 (1.35%) = $4,496
$4,496 X 0.70575 = $3,173.05

Find your property's tax rate based on its classification code.

* Your property may be subject to your local government’s special assessments and fees as in addition to the general taxes for solid waste, street lighting, and special or rural improvement districts.

County treasurers typically mail real property tax bills in late October with first payment due November 30 and second payment due May 31 of the following year. Please contact your county treasurer’s office for more information about any special assessments and fees shown on your tax bill that affect your property.

If your appraisal notice indicates that your property’s market value increased over the past two years, this does not necessarily mean that your property taxes will go up the same percentage. Montana law, 15-10-420, MCA, provides for limitations on the amount of property tax that can be collected.