Montana Department of Revenue

COVID-19 Department of Revenue Property Assessment Updates

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COVID-19 Department of Revenue Property Assessment Updates

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The Property Assessment Division (PAD) staff, for the most part, is still working remotely. We do have a limited number of people working in offices where the space allows for social distancing and other COVID-19 safety protocols can be met. We have not started to open our offices up to the public yet; we will begin to develop plans to do so this week. We will coordinate with local government officials as we move forward in these planning activities.

Beginning this week, we are going to allow appraisers to be more active in the field, picking up new construction and updating current property data. They have been directed to follow current CDC guidance, How to Protect Yourself & Others – Coronavirus Disease 2019 (COVID-19). This includes proper social distancing and the use of protective face coverings. We will monitor and adjust this plan accordingly.

Personal Property assessment notices have been sent to print and mail, dated May 8, 2020.  Personal Property downloads will be available for all counties May 16-17. PAD will be doing final review of Real Property assessment notices starting in the last week of May, the notices will be sent to print as reviews are completed. Real Property assessment notices will be dated June 19, 2020, downloads will be available June 6-7.

Thank you.

Download a printable version of this letter (PDF, 95 KB)

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Certified Property Values and Mill Levies

The “Certified Values” are total taxable property values determined by the Department of Revenue for each tax jurisdiction.

The department provides these values to the tax jurisdictions every year on the first Monday in August.

2020 Certified Values will be available on August 3, 2020.

The full details of the report, including the certified values of every tax jurisdiction and the statewide totals can be can be found at Property.MT.gov.

Local governments establish their budgets and set their mill levies for property tax calculation and collections based on the certified taxable value provided to each taxing jurisdiction.

Calculating Levies and Property Tax

To calculate the number of mills in each jurisdiction and property tax due, follow the steps below.

This procedure is outlined in 15-10-420, MCA.

Step 1

Calculate Adjusted Property Tax Revenue (APTR)

The current year’s adjusted property tax revenue is equal to the jurisdiction’s previous year’s property tax revenue increased by one-half of the average rate of inflation over the previous three years:

\text{APTR} = \text{Previous Year's APTR} \times \left(1 + \left(\frac{\text{3 Years Inflation}}{2}\right)\right)

Step 2

Calculate Maximum Mills

Next find the jurisdiction’s maximum mills.

This is 1,000 times the jurisdiction’s Adjusted Property Tax Revenue (APTR) divided by its Certified Taxable Value minus its Newly Taxable Value (Rounded down to the third decimal):

\text{Maximum Mills} = 1,000 \times \left(\frac{\text{APTR}}{\text{Certified Taxable Value} - \text{Newly Taxable Value}}\right)

Step 3

Calculate Millage Rates

Find the Millage Rate. This is the total number of mills from all jurisdictions for your property divided by 1,000.

\text{Millage Rate} = \frac{\text{Total Mills}}{1,000}

Step 4

Estimate Property Tax

Finally, property owners multiply the Taxable Value by the Millage Rate to find their Property Tax.

\text{Property Tax} = \text{Taxable Value} \times \text{Millage Rate}

This is an estimate of general property taxes. Local governments may also assess special fees and assessments. Property owners should contact their County Treasurer for more information on special assessments or fees.

Example Levies and Property Tax

For this example, we will look at a property with a $2,793 Taxable Value, in one tax jurisdiction with:

  • Previous Year’s Property Tax Revenue: $1,000,000
  • Three Year Inflation: 2%
  • Current Year Certified Taxable Value: $2,000,000
  • Newly Taxable Value: $100,000

We will also assume a second tax jurisdiction with 304 mills.

Step 1

Calculate Adjusted Property Tax Revenue (APTR)

\text{APTR} = \$1,000,000 \times \left(1 + \left(\frac{0.02}{2}\right)\right)
\text{APTR} = \$1,000,000 \times 1.01
\text{APTR} = \$1,010,000

Adjusted Property Tax Revenue: $1,010,000

Step 2

Calculate Maximum Mills

\text{Maximum Mills} = 1,000 \times \left(\frac{\$1,010,000}{ (\$2,000,000 - \$100,000)}\right)
\text{Maximum Mills} = 1,000 \times \left(\frac{\$1,010,000}{\$1,900,000}\right)
\text{Maximum Mills} = 1,000 \times (0.531)
\text{Maximum Mills} = 531

Maximum Mills: 531

Step 3

Calculate Millage Rates

Find the Millage Rate. This is the total number of mills from all jurisdictions for the property divided by 1,000.

\text{Millage Rate} = \frac{531 + 304}{1,000}
\text{Millage Rate} = \frac{835}{1,000}
\text{Millage Rate} = 0.835

Millage Rate: 0.835

Step 4

Estimate Property Tax

\text{Property Tax} = \$2,793 \times 0.835
\text{Property Tax} = \$2,332.16

Property Tax: $2,333

Abandoned Mobile Home Tax Exemption

Quick Information

Due Date

March 1

Benefit

Exemption from Property Tax

Related Resources

Abandoned Mobile Home Tax Exemption Application

Eligibility

An abandoned mobile home may be exempt from property tax if it:

  • is uninhabited because it is not fit for human habitation;
  • does not have another productive use, such as storage of personal property or used for livestock; and
  • is assessed separately from the land on which it is located and is not considered an “improvement” to real property as defined in 15-1-101, MCA.

Due Dates

Abandoned Mobile Home Tax Exemption Applications are due March 1 to be considered for the current tax year.

Forms

To apply, complete the Abandoned Mobile Home Tax Exemption Application.

Related Laws

15-6-242, MCA

Agricultural Processing Facilities Exemption

Quick Information

Benefit

Exemption from Personal Property Tax

Related Resources

Agricultural Processing Facilities Exemption Application

Montana grants a personal property tax exemption to agricultural processing facilities with qualifying machinery and equipment.

Eligibility

Agricultural processing facilities with the following qualifying personal property must submit an application to receive an exemption for:

  • machinery and equipment used in a canola seed oil processing facility with 15 or more employees;
  • machinery and equipment placed into production after December 31, 2019 in a hemp processing facility and used principally to process hemp in accordance with a license issued by the Department of Agriculture under Title 80, chapter 18;
  • machinery and equipment used in a malting barley facility;
  • machinery and equipment used in a pulse processing facility;
  • all manufacturing machinery, fixtures, equipment, and tools used for the production of ethanol from grain during the course of the construction of an ethanol manufacturing facility and for 10 years after completion of construction of the manufacturing facility; and
  • personal property used by an industrial dairy or an industrial milk processor and dairy livestock used by an industrial dairy.

Benefit

Personal property tax exemption to agricultural processing facilities with qualifying machinery and equipment.

Forms

To apply, complete the Agricultural Processing Facilities Exemption Application.

Related Laws

15-6-220, MCA

Personal Property Depreciation Schedules and Trend Tables

Personal Property Depreciation Schedules and Trends Tables

We use the Personal Property Depreciation Schedules and Trend Tables to value taxable tangible personal property.

ReportDownload
2020 Personal Property Depreciation Schedules and Trend TablesPDF, 779 KB
2019 Personal Property Depreciation Schedules and Trend TablesPDF, 854 KB
2018 Personal Property Depreciation Schedules and Trend TablesPDF, 782 KB
2017 Personal Property Depreciation Schedules and Trend TablesPDF, 795 KB

Tax Increment Financing (TIF)

Tax Increment Financing (TIF) is a way for certain districts to use property tax revenue to fund new development. It works by separating taxable value into base and increment values, so that revenue from the base value continues to go to the regular taxing jurisdiction, but as taxes increase over the years, that growth—the increment—go to the TIF to pay for development activities within the TIF district.

The development of TIF districts is authorized by 7-15-4282, MCA.

Tax Increment Financing may be used to pay for a variety of development activities within the TIF district including:

  • land acquisition;
  • demolition and removal of structures;
  • relocation of occupants;
  • infrastructure costs;
  • construction of publicly owned buildings and improvements;
  • administration of urban renewal activities; and
  • payment of bonds issued to fund such costs.

(See 7-15-4288, MCA for more details)

Upon expiration of the TIF, the increment is released back to the local governments and the state. State and local governments use the released increment as newly taxable property for 15-10-420, MCA purposes. Schools treat the released increment as an increase in their tax base and adjust their mill levies accordingly.

TIF districts expire on the the 15th year following its adoption, or upon the full payment of all bonds for which tax increment revenue have been pledged, whichever is later. TIFs may extend their expiration date by securing bonds that pledge post-15th-anniversary-increment as repayment. No term extensions are allowed for bonds secured after the 15th anniversary of tax increment provisions. For example, if a TIF was authorized January 1, 2000, it has until January 1, 2015 (its 15th anniversary) to pass bonds secured by future increment to extend the expiration date. Additional bonds may be passed after the 15th anniversary but these would not extend the life of a TIF.

See a complete list of TIF Districts (XLSX, 106 KB)

Gantt chart showing the timeline for TIF Authorization in the 15-year cycle.

Please Note:

TIF districts collect the incremental tax revenue from all the local and state mills except the statewide six-mill levy that is used to fund the university system.

Due Dates for Local Governments

August 1
Local governments must notify the department of the name of the proposed TIF district, its contact person, its desired base year, and a preliminary legal description. This must be accompanied by a map illustrating the proposed boundaries of the district if the local government wants the department to provide them with a list of the affected real property, separately assessed improvements, and personal and centrally assessed properties within the district.
December 1
Local governments must notify the department of the name of the proposed TIF district, its contact person, its desired base year and a preliminary legal description. This must be accompanied by a map illustrating the proposed boundaries of the district if the local government does not need the department to provide them with a list of the affected real property, separately assessed improvements, and personal and centrally assessed properties within the district.
February 1st
Local governments must submit formal notification and supporting documentation for the creation or amendment of any TIF district on or before February 1 of the calendar year following the creation or amendment of the district. The required supporting documentation can be found in ARM 42.19.1403 for an Urban Renewal District (URD) and in ARM 42.19.1404 for a Targeted Economic Development District (TEDD).

Please Note:

All notification and documentation for the creation or amendment of an URD or TEDD must be emailed to DORTIFinfo@mt.gov or mailed to the following address:

Department of Revenue
Property Assessment Division
P.O. BOX 8018
Helena, MT 59604-8018

General questions regarding TIF districts can be directed to:

Sherri Diemert
sdiemert@mt.gov
(406) 444-5516
Stacie St. Clair
SSt.Clair@mt.gov
(406) 444-5508

Recommended TIF District Setup in a County System

A Tax Increment Finance district is always set up as one or more distinct levy districts.

The department recommends setting up TIF districts through a process similar to applying a special district flat fee. Calculate the base and increment percentage for the district as a whole and then apply the base or increment percentage globally to all of the records in the affected TIF levy districts.

Administering the TIF in this way would avoid tax bills with negative increments. It would also ensure that all properties within the TIF district contribute proportionally to the TIF fund.

The following tables demonstrate this concept.

Base Taxable Value is the taxable value from the year designated as the base year in the TIF district documentation.

 Current Taxable ValueBase Taxable ValueIncrement Taxable Value
TIF Levy District 1Current Year Taxable ValueTaxable Value from the Base YearCurrent Taxable Value minus Base Taxable
TIF Levy District 2Current Year Taxable ValueTaxable Value from the Base YearCurrent Taxable minus Base Taxable
Total TIF DistrictSum of TIF Levy 1 & TIF Levy 2 Current Taxable ValueSum of TIF Levy 1 & TIF Levy 2 Base Taxable ValueSum of TIF Levy 1 & TIF Levy 2 Increment Taxable Value
Increment Percent to TIF
\text{Increment \% to TIF}=\text{Total Increment}\div\text{Total Current Taxable Value}
Remaining Percent to Base
\text{Remaining \% to Base}=\text{Total Base Value}\div\text{Total Current Taxable Value}
The Increment Percent is applied to each TIF Levy District’s Current Taxable Value
\text{TIF Levy District 1 Increment} = \text{Increment \%} \times \text{TIF Levy District 1 Current Taxable Value}
\text{TIF Levy District 2 Increment} = \text{Increment \%} \times \text{TIF Levy District 2 Current Taxable Value}
\text{Total TIF Increment} = \text{TIF Levy District 1} + \text{TIF Levy District 2}
The Total TIF Increment should also equal \text{TIF Levy 1} + \text{TIF Levy 2} from the table above.

Example:

Tax Increment Finance DistrictLevy District CodeCurrent TaxableBase TaxableIncrement Taxable
TIF Levy District 1T17,980,6874,581,5683,399,119
TIF Levy District 2T23,201,1962,464,904736,292
Entire TIF District T1/T211,181,8837,046,4724,135,411
Increment % to TIF
\text{Increment \% to TIF} = \text{Total Increment}\div\text{Total Current Taxable Value}
\text{Increment \% to TIF} = 4,135,411\div11,181,883
\text{Increment \% to TIF} = 36.9831\%
Remaining % to Base
\text{Remaining \% to Base}=\text{Total Base Value}\div\text{Total Current Taxable Value}
\text{Remaining \% to Base}=7,046,472\div11,181,883
\text{Remaining \% to Base}=63.0169\%
TIF Levy District 1 Increments
\text{TIF Levy District 1 Increment} = \text{Increment \%} \times \text{TIF Levy District 1 Current Taxable Value}
\text{TIF Levy District 1 Increment} = 36.9831\% \times 7,980,687
\text{TIF Levy District 1 Increment} = 2,951,508
TIF Levy District 2 Increments
\text{TIF Levy District 2 Increment} = \text{Increment \%} \times \text{TIF Levy District 2 Current Taxable Value}
\text{TIF Levy District 2 Increment} = 36.9831\% \times 3,201,196
\text{TIF Levy District 2 Increment} = 1,283,903
Total TIF Increment
\text{Total TIF Increment} = \text{TIF Levy District 1} + \text{TIF Levy District 2}
\text{Total TIF Increment} = 2,951,508 + 1,283,903
\text{Total TIF Increment} = 4,135,411

General setup process:

  • Enter the Base Percent into a custom field.
  • Apply the Base Percent globally to the records in the affected TIF levy districts.
  • At the property record level, calculate:
    Taxable Value × Base Percent
    The taxes levied against the result would receive normal distribution to all affected taxing jurisdictions.
    Remaining Taxable Value
    The taxes levied against the result would be distributed to the TIF district fund except for the six university mills.

TIF Increment Example

Base taxable value is the total taxable value in the TIF district in the year prior to the existence of the district. Incremental taxable value is the taxable value that exceeds the base taxable value for the district in any year. For example, if in the year a TIF is created, the base year and current year taxable value are equal to $1 million, there would be no incremental taxable value and no TIF revenue.

TIF Taxable ValueBase Year
Current Year Taxable Value$1,000,000
Base Taxable Value-$1,000,000
Increment Taxable Value$0
Millage Rate×0.500
TIF Revenue$0

If in the second year of existence of a TIF district, its taxable value grew by $100,000, then the incremental value in that year would be $100,000. If the total millage rate in the TIF was 0.500, the taxes generated from the increment (TIF revenue) would be $50,000.

TIF Taxable ValueBase YearYear 2
Current Year Taxable Value$1,000,000 $1,100,000
Base Taxable Value($1,000,000)($1,000,000)
Increment Taxable Value$0$100,000
Millage Rate×0.500×0.500
TIF Revenue$0$50,000

If in the third year of the TIF district, the taxable value shrinks to $800,000, due to property devaluation, demolition or removal of structures, or the like, then the incremental value would be negative ($200,000), meaning there would be no incremental value for the third year. When a TIF district’s incremental value is less than zero, no revenue is provided to the district.

TIF Taxable ValueBase YearYear 2Year 3
Current Year Taxable Value$1,000,000 $1,100,000 $800,000
Base Taxable Value($1,000,000)($1,000,000)($1,000,000)
Increment Taxable Value$0$100,000 ($200,000)
Millage Rate×0.500×0.500×0.500
TIF Revenue$0$50,000 $0

If in the fourth year the taxable value of the TIF grows from $800,000 to $1,200,000, due to redevelopment or the like, then the increment would increase to $200,000. If the millage rate was 0.500, the district’s revenue would be $100,000 in this year.

TIF Taxable ValueBase YearYear 2Year 3Year 4
Current Year Taxable Value$1,000,000 $1,100,000 $800,000 $1,200,000
Base Taxable Value($1,000,000)($1,000,000)($1,000,000)($1,000,000)
Increment Taxable Value$0$100,000 ($200,000)$200,000
Millage Rate×0.500×0.500×0.500×0.500
TIF Revenue$0$50,000 $0$100,000

How Taxes Collected are Allocated Example

Whether a property is in a TIF district should not affect the property tax bill, only the distribution of the tax dollars when they are received.

The example shows two properties of equal value belonging to the same set of taxing jurisdictions, one located within the TIF district and one outside. This illustrates how the TIF district would get applied at the individual property level. The taxes collected are allocated differently, but both properties pay the same amount.

Taxing JurisdictionMills Levied
Local Elemntary75 Mills
Local High School100 Mills
City99 Mills
County125 Mills
State Wide95 Mills
University6 Mills
Total500 Mills
Property A - In the TIF District
Taxable ValueBase to Taxing Jurisdictions
(Taxable Value × Base %)		Increment Value to TIF Fund
(Taxable Value - Base)
3,0001,8911,109
Local Elementary$141.83$83.18
Local High School$189.10$110.90
City$187.21$109.79
County$236.38$138.63
State Wide$179.65$105.36
University$18.00$0.00
Total$952.15$547.85
Total Taxes$1,500.00
Property B - Not in the TIF District
Taxable ValueAll to Taxing Jurisdictions
3,0003,000
Local Elementary$225.00
Local High School$300.00
City$297.00
County$375.00
State Wide$285.00
University$18.00
Total $1,500.00

Related Laws

Title 7 Chapter 15 Part 42, MCA
Urban Renewal Districts and Targeted Economic Development Districts
ARM 42.19.1403
Notification requirements for the creation or amendment of an Urban Renewal District (URD) with a Tax Increment Financing Provision
ARM 42.19.1404
Notification requirements for the creation or amendment of a Targeted Economic Development District (TEDD) with a Tax Increment Financing Provision
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