We value commercial property using information reported by Montana commercial businesses during tax season each year, January 1 through April 15.

We do not use this information to value your property individually. We use the data to create a typical income and expenses for all properties of each type.

Commercial Property Includes

  • All property not considered residential, agricultural, or industrial; and
  • Income producing property, such as:
    • Office buildings
    • Restaurants
    • Shopping centers
    • Hotels
    • Industrial parks
    • Warehouses
    • Factories
    • Light Manufacturing

Commercial Property Values

We keep values fair by estimating the Market Value for all property using one of three appraisal approaches:

Income Approach
Property values are estimated using the anticipated income benefits of the property.
Cost Approach
Property values are estimated based on the replacement cost of an improvement, minus depreciation, plus the land value.
Sales Comparison Approach
Property values are estimated by comparing the property to similar properties which have recently sold.

Commercial properties are usually valued using the Income Approach which requires both sales data and income and expense information.

See 15-8-111, MCA for more information on market values.

Quick Information

Important Dates

April 15

Related Forms and Links

Income and Expense Information

We rely on property owners to volunteer the income and expense information we need to determine the appropriate rent, expense, and capitalization rates use for property valuation.

We do not use information provided to value individual properties.

We combine information from property owners of similar property types to build a model we can use across the state.

Reporting your income and expense information is voluntary.

However, if you do not provide this information, it may impact your ability to appeal property values used for property taxation in the future. We will also request you provide this information if you Request an Informal Classification and Appraisal Review. If you refuse to provide this information during a review, we will make our determination based on the information we have available and you may be charged a penalty. (15-1-303, MCA)

We do not share the information you give us. We will keep everything you report confidential.

Income and Expense Reporting

We have two online forms available through My Revenue:

Please complete the appropriate report for each property you own for the tax years 2016 and 2017.

Income and Expense Reporting Forms are due on April 15.

When reporting income, please do not include income associated with a business occupying the property.

If you occupy the property, provide only the operating expenses.

Hotel or Motel Reporting Form

Property Information
You will need the:

  • Owner’s name,
  • Geocode found on the back of your letter,
  • Property Address, and
  • Mailing address if it is different than the property address.
Income Information
Please report the total amount of income received from each rental category:

Total Room Revenue
Revenue generated by room rent only
Food & Restaurant, Bar/Lounge, and Casino Rent
Revenue generated from these services if they are part of the hotel operation.
Telephone Revenue
Revenue from phone or other rental services, such as game or movie rental, provided to a hotel room
Miscellaneous Income
Revenue from other services, such as vending or laundry machines, offered to hotel customers and not included in another category
Departmental Costs and Expenses
Room Expenses
The cost associated with providing the room for nightly use, including expenses like housekeeping, laundry, and uniforms
Cost of Food and Beverages
The expenses associated with operating restaurants and lounges, including expenses associated with providing complimentary breakfast
Telephone Expenses
The cost for telephone and internet services
Undistributed Operating Expenses
Administration
Payroll specifically allocated to administration of the property
Franchise Fee
The amount payed to a franchise for the benefit of exposure and advertising using a branded name
Marketing
The amount used for advertising and promoting the property.
Prop. Ops, and Maint. (POMS)
The costs associated with operating the physical plant and may include:

  • Maintenance expenses,
  • Landscaping,
  • Snow removal, and
  • salaries of employees dedicated to these kinds of services
Energy Cost
All utility expenses associated with the property, except telephone or cable
Other Unallocated Operated Departments
Any expense not designated elsewhere one the form
Fixed Charges
  • Insurance for the property and liability
  • Management expenses not included as part of administration
  • Money set aside Reserves for Replacement for major repair expenses you do not incur annually
Rate and Rental Information for Rooms
Average Daily Rate (ADR)
The average rental income per paid occupied room
Total Rentable Rooms
The number of rooms available per day
Average Daily Number of Rooms Rented
The number of available rooms rented each day
Additional Information Regarding Single and Double Beds and Suites
A comparison of the actual market rates requested for each room type and the Average Daily Rate
Annual Square Foot Data
Additional sections can be added by clicking the add button located after each section.
This information represents market income for each portion of the building and is compared to the information reported in the income section to develop vacancy rates. It also helps determine rent ranges for similar property types.
Floor Level From and To
Identifies specific rental units in multiple story buildings.
Term of the Lease
The lease period if it is not month-to-month.
Type of Lease
The type of lease, such as month-to-month, gross lease, or triple net.
Additional Annual Income
Rent paid over the base rent. Additional rent may be based on factors such as gross sales, net operating income, or the consumer price index.

Multiuse Reporting Form

Property Information
You will need:

  • Owner’s name,
  • Geocode found on the back of your letter,
  • Property Address, and
  • Mailing address if it is different than the property address.
Income
Please report the total amount of income received in each rental category:

  • Apartment Rentals
  • Office Rentals
  • Retail Rentals
  • Industrial/Warehouse/Garage Rentals
  • Room Rentals
Other Rentals
Income from parking space or storage bin rental, etc.
Other Income and Reimbursements
Income you receive from concessions, laundry rooms, and other services connected to operating the project.
Other income could also be reimbursement for utility expense or other expense you paid but were reimbursed for by the tenant.
Expenses
Payroll associated with property, except:

  • Management salary
  • Contracted services
Reserves for Replacements
Report the full amount of money set aside each year to replace items that have a shorter life than the building such as carpet, roofing, heating system, etc.
Money set aside for larger expenses should be prorated to one year’s cost. For example, if you replace your roof for $20,000 and it is expected to last 20 years, the one year cost would be $1000.
Insurance
Include Hazard, Fire, Casualty, Liability and any other insurance directly related to the building.
Do Not Include business insurance or life insurance.
Security
Include contracted security and security system rental and fees.
Security guard salary would be included in payroll associated with property.
Capital Improvements
Capital improvements are not considered an operating expense.
Capital improvements are long-lasting additions to the property that usually increase total value, income or economic life. Capital improvements could include major rehab and remodeling.
Annual Square Foot Data
Additional sections can be added by clicking the add button located after each section. The add button is available for all sections including Annual Square Foot Rental, Apartment Data, Mini-Warehouse Data and Monthly Market Rental Data.
This information represents market income for each portion of the building and is compared to the information reported in the income section to develop vacancy rates. This information also helps determine rent ranges for similar property types.
Floor Level From and To
Identifies specific rental units in multiple story buildings.
Term of Lease
The lease period if it is not month-to-month.
The type of lease, such as month-to-month, gross lease, or triple net.
Additional Annual Income
Rent paid over the base rent. Additional rent may be based on factors such as gross sales, net operating income, the consumer price index.
Apartment Data
Enter the number of units that have the same Bedroom and Bathroom combination and include the current market rent for that unit type.
Market rent is the current asking rent for the property and may be more than the actual monthly rent received.
For example, a long-term tenant receives a discount and pays $550 per month for a 2 Bedroom 1 Bathroom unit, an identical unit has just been rented to a new tenant for $600.
Proper reporting would be for two 2-Bedroom, 1-Bathroom units at $600 each.
The Parking/Storage/Garage information only needs to be completed when the additional space is rented separately from the base apartment rent.
Mini Warehouses
Include:

  • Unit size in Length x Width x Height,
  • The Number of Units, and
  • Current Market Rent.
Click the Yes/No radio buttons to indicate if power or temperature control is available in the unit.
Add parking spaces for any exterior parking that is rented and include the monthly rent per space.
Monthly Market Rental
Include the number of space at each rent level.
Use the “Add” button to report multiple spaces of the same type at different rent levels.